Something Has To Change

The more I talk with pharmacy owners the more I come to realize that PBM/third-party reimbursement rates have gotten so low and expenses so high that something has to change. 

Work done by pharmacy associations to attack the PBM problem are notable, well intended and likely to produce meaningful relief.  But, the sad fact is this process takes a lot of time.

Logic would dictate that if you cannot change the reimbursement rates fast enough to allow you to meet your profit and cash flow needs then the other logical alternative is to change what you do.   

To help you make a meaningful change may I suggest other, non-medication related services that can be rapidly adopted by community pharmacy and profitably implemented.  They are professional in nature and will fit the “psychic” profile of a typical pharmacy.  

My observations suggest community pharmacy is well positioned to take advantage of services that would help people find doctors who accept their insurance and specialize in the disease states a person is dealing with.  A small fee for such a service could be implemented if the marketing materials where produced in the proper manner.

Another is a service where you help people review all their medical bills and provide the expertise necessary to contact providers and payers, resolve mistakes and negotiate payment schedules.  This service could be done on a cash pay basis – think H & R Block.  These services would be provided in a formal office setting located in your pharmacy and be provided by a staff member other than the pharmacist. 

I am most intrigued by the growth in the number of franchise operators touting their ability to provide in- home-care to seniors.  By artfully drawing upon personal relationships with your aging patients, and marketing to their adult children, a community pharmacy could easily compete with a franchise operation by providing such a service.  And, a pharmacy could also assist in the handling of medications, a service the other entities avoid.   

I have seen pharmacies venture into hearing aids and optical services.  Perhaps some of the professionals in your market area who are struggling from the lack of visibility could be brought into your pharmacy to lease space.  They would add to your professional reputation and benefit from the foot traffic your pharmacy provides.  A true win-win scenario.    

Here is the bottom line.  Health care, not just pharmacy, is changing at a rapid pace.  That means new opportunities are emerging at the same time pharmacy reimbursement is being slashed.  A well run, well known and well-respected community pharmacy has the ability to start providing other health related services.  These services are needed.  And, many of them are paid for out-of-pocket by the patient or their family caregiver.    

Many of these services will be new to you and new can be scary.  Still, why not look around, talk with your staff and see if you can find a new service to bring in that will give you the profit boost you need.  After all, something has to change.  Why not you?

Comments, suggestions? Contact me at BFKneeland@gmail.com