I have been involved in selling to, working for and writing about independent community pharmacy for nearly 50 years. When I started the chains were just beginning to emerge as market leaders. Their challenge was tying to catch up with Rexall, the retail drug store powerhouse with 10,000 retail franchisees.
The chains came on fast and took a huge chunk of the marketplace. But well run independents that invested in technology and found ways to better serve their customers held on pretty well. At the turn of this century the power was grabbed by the PBM's and the results have been devastating to independent pharmacy. So much so that many say the sun is setting on the industry and profession.
But, hold on a minute. The classic cliché is that when one door closes another door opens. From my perspective, the future of independent pharmacy is bright; or, using the picture, I'd say the sun is rising! It is a new day. Owners are finding ways to take on new roles, provide new products and services and plug into their community to profitably fill gaps in healthcare.
The door that is opening is being built upon a foundation of service and trust; and, I must add, upon dispensing. But, understand, dispensing is the starting point, not the end all. The real opportunity is in providing healthcare services.
I get to visit a lot of pharmacies. By definition, half of them are below average. But the top 25% are forging a path to profit by expanding their vision of their profession. That new vision includes being a healthcare professional with an expertise in medications.
Let's face it, medications play a critical role. What would a doctor do without antibiotics, blood pressure meds or any other of the thousands of products a great community pharmacy stocks. Yet, medications don't work if people don't take them. But, as you know, pharmacy can no longer survive on third party reimbursement.
Immunizations, drug nutrient depletions, diabetes education, hypertension monitoring, lipid management are the starting point. That leads to point-of-care testing, pharmacogenetics, birth control prescribing and a myriad of other services that in many cases are paid for in cash by the consumer.
In my opinion too many pharmacy owners have surrendered to the notion that if insurance doesn't pay then people won't either. That is a false narrative that is driving many pharmacies to sell their files and walk away. I agree that if insurance doesn't pay many people won't pay. Indeed, I'd even agree that most people won't pay. But, I do argue that some people will.
The, some people, brings me back to the point mentioned earlier. That being, growing into healthcare services can best be built on the foundation of dispensing. As an example., assume 10% of your patients will spend $25 for a product to address a drug nutrient depletion. If you have 2000 patients that means 200 people with pay. If you have 1000, you'll only get a 100.
Thus I argue, pharmacy needs to aggressively hang onto their role as the medication experts. Then they need to find ways to add on many more of these other services mentioned above. In doing so it is critical they first believe "some people" will pay for "some" things. Then, the hard part is figuring out just what new product, program or service they can provide that will prove successful.
Here's hoping something you have read here will help you do more and be better.
