Pharmacy Performance Analysis

When you track your gross profit per prescription, you’re measuring how effective you are at dispensing. You must keep tracking this measurement to spot the trends in your pharmacy so you know where to focus your efforts. Increasing your GP/Rx has a direct impact on your ability to pay expenses, the profitability of your pharmacy and, of course, your bottom line. Your Pharmacy Performance Analysis will tell you the ways to increase your GP/Rx and the opportunities you can leverage to sustain the growth.

The payroll ratio is a spending ratio, but it’s also an efficiency measurement. If your ratio is off, it could be a symptom of a number of issues at play in your pharmacy. Whether it’s the amount of people on your team or, most likely, how efficient each team member is, your Pharmacy Performance Analysis will help you determine where you stand against the industry goal and how to improve your number.

Increasing your over-the-counter (OTC) sales increases your bottom line and therefore it’s important to measure your OTC dollars per employee hour. If you want to increase this number, you must have a strategy to get full team buy-in to improve efficiency. Along with calculating this KPI, your Pharmacy Performance Analysis will come with strategies you can use that will empower your employees to have a stake in improving OTC sales.

If you want to run a leaner, more profitable pharmacy, you must start with your inventory. Most pharmacies have far too much inventory on their shelves and this is one of the biggest causes of cash flow issues. At a minimum, you should review your inventory turns annually. Your Pharmacy Performance Analysis will calculate your number, show you where you stand against the industry goal, and suggest strategies to find the right balance of inventory for your pharmacy.