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, not anytime soon! 

Logic would dictate that if you cannot change the reimbursement rates fast enough to allow you to meet the needs of your patients 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 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.   Or perhaps you partner with existing agencies and help them provide an ancillary service – using your pharmacy – to help manage medications. 

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?

Check Out My New Podcast

The Pharmacy Podcast Network (PPN) has entered into an agreement with independent community pharmacy veteran, Bruce Kneeland, to create a brand-new show, Pharmacy Crossroads.  PPN is the largest and most listened to podcast in the pharmacy industry with thirty shows and more than 75,000 listeners. 

The monthly podcast, lasting about 30 minutes, features Kneeland interviewing pharmacy owners, association executives, journalists or senior executives from companies that support community pharmacy. The goal of each podcast is to provide pharmacy owners with information and inspiration that will help them improve patient care and operate more profitably.  

Much of the program’s content will draw upon Kneeland’s personal relationship with pharmacy owners he has met on his well-publicized pharmacy road trips.  Still, the real meaning behind the podcast’s name comes from the fact that the profession, and the industry, are at a crossroad.  The discussion of cost-effective ways to reduce medication mis-adventures, provide enhanced patient care and generate new revenue streams will serve as the core topics of each podcast.

You can listen in at:  www.pharmacycrossroads.com 

 

Advertise on TV?  You Must Be Kidding!!!!

John Cobb, owner of Cobb’s Westside Pharmacy in Russellville, Arkansas, has been advertising on TV for the past 7 years.  He says when he was first approached on the idea at a trade show in 2013, he told the person in the booth that he thought they must be kidding.  He couldn’t imagine that TV could work for his pharmacy, especially on his advertising budget.    

But Cobb says he listened, asked hard questions, thought what he heard made sense and decided to give TV try.  Seven years later he says TV has helped him in three ways:

1.      He has picked up new patients.  The biggest driver of new patients is his Sildenafil program.  But advertising his flavoring, free kids’ vitamin program and providing updates on his COVID response have all proven productive.

2.      He has expanded sales to existing patients.  Cobb says too often pharmacy owners fail to realize the biggest increase in sales they can get comes from getting current customers to utilize new services, such as immunizations or nutritional supplements.

3.      Being on TV boosts employee morale.  When team members tell people that they work at Cobb’s Westside Pharmacy they do so with pride as it is likely these people know good things about the pharmacy from his TV ads.

Cobb says none of this would be possible without the help of Judy Leventhal of Leventhal Productions.  He says Leventhal works with him to come up with the ideas for his ads and then she creates a custom buy-plan that targets the people most likely to benefit from the products or services each ad supports.    

Leventhal says she currently works with about 300 pharmacies.  The most important thing for TV to work is the pharmacy must be doing something that appeals to consumers.  TV ads that simply say we provide fast, accurate and friendly service won’t work.  Then she says, no matter what product or service you want to feature you need to look for an effective way to demonstrate its value.  Words and pictures are critical, which is what TV does best.    

Leventhal says a critical success factor is coming up with a customized buy plan.  “Finding the right balance between, what the ad says, how well it says it, how many people see the ads and how much it all costs is at the heart of what I think I do best for pharmacies,” she says. 

It has been my pleasure to know and work with Judy for nearly 20 years.  If you have any desire to check into this and see if TV could work for you can contact me at: BFKneeland@gmail.com

 When I called, I got an answer that totally surprised me!

Here’s the back-story.  I had arranged to interview Michael McIntosh. He and his father, Larry McIntosh, own six pharmacies in southeast Missouri. I had been told they used a marketing services company to help them do geofencing, a type of marketing I was eager to learn more about.

When we connected and I asked Michael about geofencing he said he was thrilled with the success of the program but that he did not want to talk about that. Instead he said, the most important thing GRX Marketing did for his company was create a comprehensive marketing plan.  “Before they produced any marketing materials, they took the time to learn about our company, the philosophy my dad and I have towards patient care and dig into the demographics of the communities we serve.”

According to Michael several years ago he participated in a meeting where Nicolle McClure, President of GRX Marketing was presenting. He was impressed with her remarks but since they were working with a local marketing specialist at the time, he chose not pursue the opportunity. Later, that marketing person left them so Michael reached out to GRX Marketing and agreed to give them a try. Three years later he says, “I can’t speak more highly of them.”

He says, the team at GRX Marketing understands pharmacy and jumped right in to develop a plan and then carefully coordinate several marketing programs that complement one another. Geofencing was one of the tools they implemented. He says it works well for him and he encourages other pharmacy owners to look into it.  But, he repeats, his core suggestion is to work with a company that can create a plan that fits the unique needs of your pharmacy.

What about cost? With six stores on the GRX Marketing program he says the fees are not insignificant. But, he says, every time he and his dad sit down to look for ways to reduce expenses, they decide to keep using the service.  

If you wonder if GRX Marketing could help your pharmacy do more and be better you can email Nicolle at:  Nicolle.McClure@GRXMarketing.com or check out their website at: www.grxmarketing.com