The Story Is Told.....

 

of the general manager of a prestigious country club.  While examining the books he was appalled to see how much they spent on shampoo for the men’s shower.  As a first-class club they had a pattern of putting our full bottles of a top-notch brand of shampoo and conditioner and it seems the members were taking the liberty of taking a bottle home with them in their sports bag.

The GM met with senior staff and board members to discuss what they could do.  No one wanted to accuse members of stealing.  Ideas such as putting in security camera’s or checking members bags or even posting signs asking people to not take the shampoo home were deemed too intrusive and dismissed. 

At a loss for what to do the GM eventually went down to talk with the custodian. Since this was such a low-level employee, he did not have much hope.  But he was stunned when the custodian came up with the perfect answer.  He said, “If you want, when I put out a new bottle of shampoo, I’ll can remove the cap.”

What is the morale?  Sometimes the people on the front lines, stocking the shelfs, and working the cash register are in a better position to know how to solve a problem than the people at the top.  Try to involve everyone when solving a problem or trying out a new idea.  

Pharmacy Is At A Crossroads And That Is Good News

Some pharmacies continue to generate sufficient profit by filling ever increasing numbers of prescriptions while using technology to reduce operational costs.  While that may work for some pharmacies that strategy will be hard for most independent community pharmacies to follow. 

Fortunately, creative pharmacy owners and dedicated suppliers have found new avenues for profitable growth. Many pharmacies are successfully incorporating cash-pay services into their practice.   Among them are point-of-care testing, weight loss, health coaching and drug nutrient depletion.  Some of the more aggressive pharmacy owners I know openly talk about how they work with patients and prescribers to take people off of prescription medications in favor of nutritional supplements.   

I recently had a discussion with an innovative pharmacist that is working with physicians all across the country.  He contracts with them to provide a specially trained pharmacist that works in the doctor’s office.  As a contractor the pharmacist meets with patients, provides counseling and does medication reviews.  These services are billed by the doctor using well established billing codes and the pharmacist is paid by the hour for the services he or she provides.      

Pharmacogenetic (PGx) testing is growing as it takes much of the guess work out of prescribing.  True, it is expensive, several hundred dollars per test and most people won't pay; but, some will.  Counseling with the patient on the meaning of the results and then working with the patient’s doctors to adjust therapy is an exceptional opportunity for pharmacy.   At this time, third-party reimbursement for the PGx testing seems to be a ways-off.  One innovative pharmacist successfully selling this service told me he hopes insurance companies never pay, saying, “As soon as they do reimbursement will decline.”  

Then, to the point on almost every pharmacy owners mind, COVID testing and vaccination.  Retail pharmacy has benefited from numerous press reports on how pharmacists stepped-up and helped solve the vaccine administration problem. Building on this platform of success will open doors for pharmacy in lots of new areas.   

The bottom line, filling prescriptions will still be a major component of community pharmacy.  Helping people with their medications is a critical aspect of healthcare; and, one that rightfully belongs to pharmacy.  But it is also clear that dispensing alone will not be sufficient for most pharmacies going forward.   

Community pharmacy is at a crossroads.  Change is coming and the good news is there are already several practice formats that have proven to be practical, and profitable.  But it won’t be easy.  My advice, think, research and then find a new product line, program or service that best fits your communities need as well as your skill set and passion. Then, get started and remember the Nike sports wear company slogan; Just Do It.  

If you own a pharmacy, or if your job brings you in close contact with pharmacy owners, you may want to check out my podcast:  www.pharmacycrossroads.com.  Each podcast runs about thirty minutes and provides information from successful pharmacy owners and industry experts who are kind enough to share their management, marketing and clinical success tips.  

Mark Cuban Helps Start The Cost Plus Drug Company

I am excited to be part of this upcoming program.  Lots of new companies and new methods of serving patients are entering the pharmacy landscape.  The Mark Cuban Cost Plus Drug Company is one of them.  I can't wait to hear what this guy has to say.  

Press Release:  Dr. Alex Oshmyansky, CEO and founder of the recently launched Mark Cuban Cost Plus Drug Company will be the featured guest on an interactive webinar.  The program is designed to help pharmacy owners understand how this new company will benefit pharmacists and consumers.  The webinar is scheduled for March 2, 2021 from 2PM until 4PM Eastern Standard Time.  It is being produced by the Pharmacy Podcast Network in coordination with RxSafe and will be recorded for on-demand listening. Click here to register.  

 Todd Eury, CEO and Founder of the Pharmacy Podcast Network says, Dr. Oshmyansky, who goes by “Dr. Alex”, is eager for his new company to help consumers avoid the high cost of medications. Dr. Alex, is a board-certified radiologist who says he has seen too many patients suffer, and some even die, due to high prices and the complicated distribution, formulary and prior authorization systems that have made medications cost far more than necessary.

 Late last year, Dr. Alex was introduced to Mark Cuban. Cuban is the outspoken billionaire entrepreneur who has gained national attention as the owner of the Dallas Maverick’s professional basketball team and as a member of the acclaimed TV show, Shark Tank. Dr. Alex says Cuban understood his vision and has provided funding, leadership and opened doors for the company. 

 During this webinar Dr. Alex will chat with co-hosts, Todd Eury and Bruce Kneeland.  Kneeland is the host of the  popular podcast, PharmacyCrossRoads, which is one of the 30+ podcasts featured on the Pharmacy Podcast Network.  Joining Eury and Kneeland as panelists will be Bill Homes, Founder and CEO of RxSafe, Brad Jones CEO of Retail Management Solutions (RMS) and Kyle Fields, CEO of Appro-Rx which is sponsoring the podcast.     

 “I am really looking forward to listening to ideas and suggestions from those that participate in this webinar. This is a big problem and a huge opportunity for all of us to work together to take unnecessary costs and operational hurdles out of the pharmaceutical industry,” says Dr. Alex.   

 According to Eury the webinar & podcast will be a combination of panelist and participants asking questions, while at the same time, serving as an advisory board to Dr. Alex. He says the company is already providing one major generic medication to consumers at one tenth of the price of the current product.  Other medications are in the pipeline and will be announced soon, according to Dr. Alex. 

 Pharmacy Is At A Crossroads

Some pharmacies continue to generate sufficient profit by filling ever increasing numbers of prescriptions while using technology to reduce operational costs.  But that path will be hard for most independent community pharmacies to follow. 

Fortunately, creative pharmacy owners and dedicated suppliers have found new avenues for profitable growth. Many pharmacies are successfully incorporating cash-pay services into their practice.   Among them are point-of-care testing, weight loss, health coaching and drug nutrient depletion.  Some of the more aggressive pharmacy owners I know openly talk about how they work with patients and prescribers to take people off of prescription medications in favor of supplements.   

I recently had a discussion with an innovative pharmacist that is working with physician practices all across the country.  He contracts with them to provide a specially trained pharmacist that works in the doctor’s office.  As a contractor the pharmacist meets with patients, provide counseling and does medication reviews.  These services are billed by the doctor using well established billing codes and the pharmacist is paid by the hour for the services he or she provides to the physician practice.    

Pharmacogenetic (PGx) testing is growing as it takes much of the guess work out of prescribing.  True, it is expensive, several hundred dollars per test.  Counseling with the patient on the meaning of the results and then working with the patient’s doctors to adjust therapy is an exceptional opportunity for creative pharmacy owners.   At this time, third-party reimbursement for the PGx testing seems to be a ways-off.  One innovative pharmacist told me he hopes insurance companies never pay, saying, “As soon as they do reimbursement will decline.”    

Then, to the point on almost every pharmacy owners mind, COVID testing and vaccination.  Independent pharmacy has benefits from numerous press reports on how they stepped-up and helped solve the administration problem. Building on this platform of success will open doors for pharmacy in lots of new areas.   

The bottom line, filling prescriptions will still be a major component of independent community pharmacy.  Helping people with their medications is a critical aspect of healthcare; and, one that rightfully belongs to pharmacy.   But it is also clear that dispensing is not sufficient going forward.  The future is not what it used to be and waiting for things to go back to normal is not a good strategy.

Community pharmacy is at a crossroads.  Change is coming but the good news is there are already several proven ways forward.  Pharmacy owners can choose a new path that best fits their community's need and the pharmacist's skill set and passion.  Here’s hoping many more of them make the necessary changes in the very near future.   

If you own a pharmacy, or if your job brings you in close contact with an owner, you may want to check out my podcast at:  www.pharmacycrossroads.com.  Each podcast runs about thirty minutes and provides information from successful pharmacy owners who are kind enough to share their management, marketing and clinical success tips.  

Here's A Customer Service Idea Every Pharmacy Can Use

 A few years ago, I attended a pharmacy CE session that impressed me.  The unique thing was the speaker was not a pharmacist nor did he speak about pharmacy, he owned a small chain of hair salons. 

He espoused a customer service technique he called, the F.O.R.D program.  I think the ideas he shared were ingenious.  Indeed, I’d like to see some pharmacy management system find a way to build the capability of using it into their software. 

As you’d expect for a hair salon his business management system kept track of appointments, the salon’s pricing schedule and calculated the commissions to be paid to each stylist.  But in his business, he said, relationships where paramount, so he’d added the ability for the system to house other information that helped his staff build relationship. 

Here’s what they put in, under the acronym of F.O.R.D.:

1.      Family: names of spouse, children, pets, etc.

2.      Occupation: What kind of work do they do, what company, how long there, etc. 

3.      Recreation:  How do they like to spend their free time, skiing, bingo, reading, etc.

4.      Dreams:  What do they wish they could do, have kids, travel, get married, etc.

So, here’s an example: the receptionist gets a call from a customer, Mary Jones asking, “When is the soonest you can get me in to see Wanda?”  The receptionist says, “Let me check,” and then while checking casually asks Mary Jones, “What’s up, why the rush?”  Mary explains her mother passed and she needs to leave in two days for the funeral.  The receptionist tells her there are two times available tomorrow. Mary Jones selects one and the receptionist books the appointment.  But that is not all, she also adds a note about the funeral in the customer relationship module. 

When Mary Jones comes in, Wanda has reviewed the note, expresses her condolences and chats about Mary Jones’ mother.  A relationship is strengthened because the system captured and shared the information. 

Sally Smith comes in on her regular visit and while chatting mentions she is up for a promotion.  Wanda makes a note and when Mary comes in six weeks later, Wanda asks for an update.

Whenever a new person comes in the stylist is trained to ask how the new person heard about the salon.  The reply is entered into the system for management review.  If the new person indicates a current customer suggested the salon the stylist adds that into the customer relationship management module.  The next time the person who referred a friend comes in the stylist thanks the person.  she is also authorized to provide the customer with a small gift, a bottle of shampoo, or other item the salon features.    

You get the idea, get, capture and appropriately use all the information you can on your patients.  People rarely leave their stylist because a new salon opened down the street.  Independent community pharmacy, like the hair salon business, is a people business. Finding new, more and better ways to build relationships is a critical success factor.  

For more ideas on what other pharmacies are doing to be successful check out my podcast:  www.pharmacycrossroads.com 

Can A Pharmacy Charge For Cognitive Services?

A housewife went to the basement to do laundry.  She soon discovered that no water flowed to the washing machine so she called a plumber.  The plumber examined the pipes in the basement, took out a hammer and hit a place where two pipes joined.  Immediately water flowed to the washer.  

The plumber handed the housewife a bill for $100.  She protested at such a high price for such a simple task.  The plumber took the bill back and rewrote it.  This time the bill said, $1.00 for hitting the pipe, $99.00 for knowing where to hit it.  

So what does this mean for pharmacy owners?  Your expertise has value but finding ways to charge for it will not be as simple for you as the plumber.  It can be done. I know because I have been in pharmacies that do it.  But it will take some careful thinking about what you can do, where you provide it and how you explain it. 

Surely you won't start charging for simple OTC advice or counter-side consultations.  But that doesn't mean you can't set up a program where you offer to sit down, on an appointment basis and do a thorough medication review where you capture all the medications a person takes, including OTC, essential oils, supplements and even discuss some dietary issues. 

An offer to do that, by appointment in a private, or even virtual setting, for a fee could appeal to a small percentage of your patients.  Once you get started and have some success your confidence will grow and you'll find ways to get others to participate.  I'd even be willing to bet some of your patients will suggest the service to others and you'll attract new customers.    

For more ideas, and to hear first hand how other pharmacy owners are implementing new, profitable programs and services check out my podcast; www.pharmacycrossroads.com

  

The Most Important Marketing Rule

I have written a number of pharmacy marketing articles and delivered dozens of live CE programs on the topic.  That's because I think good marketing is a critical success factor for independent community pharmacy.  

If you want to improve your marketing here are the four "rules" to consider, listed in order of importance. 

1. Have Something Good to Say.  That means, run an exceptional pharmacy.  Provide people with the products and services they want in a pleasing atmosphere with great customer service.  

2. Say It Well.   The words you choose to use matter.  One way to illustrate this is to imagine a young couple on a date.  The man looks into his date's eyes and says, "When I am with you time seems to stand still."  Or, he can say, "You have a face that will stop a clock."  Same idea, completely different response.  You'll want to work hard to create a persuasive message about your pharmacy.  

3. Say It Often.  You and your staff will share the message hundreds of times during the week and you'll be tempted to mix-it-up or, ad-lib.  But, before you do ask yourself if the message still resonates with your patients.  If it does, keep using it. For example, how many times have you heard, "15 minutes will save you 15%?  

4. Say It In The Right Place.  Where you promote your pharmacy should be consistent with the feeling or image you desire to create.  If you are striving for a clinical feel you'll want to focus on networking with healthcare organizations or writing articles for the local media.  If you seek a full-service drug store image, you'll want to sponsor little league teams, or fun-runs or perhaps have a cute delivery vehicle.   

Like a lot of things, saying all this is simple.  But doing it is hard but that's okay you do lots of hard things. Give these four guidelines some serious thought.  Talk them over with you team and challenge everyone to help make sure you are, first of all, running an exceptional pharmacy.  Then work on finding effective ways to tell others about what you offer.