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.  

My PharmacyCrossRoads Podcasts Just Keep Getting Better

So, a few weeks ago I got to spend some time on the phone with Sparky Hedden, R.Ph. and owner of McCoy Tygart Drug in Sheridan, Arkansas.  Sparky - and his team - were recently named the 2020 Good Neighbor Pharmacy of the Year, a true honor and one that was well deserved.  

In our 30+ minute discussion Sparky talks about a number of ways his 125 year old pharmacy has become an institution in his town.  Among them are ownership transition, COVID response, digging into the data to find profit opportunities, improving front-end operations and even how a $2.00 bill promotion has inspired his team and effectively promoted his pharmacy.  

You can listen in at this link,

https://omny.fm/shows/pharmacy-podcast-network/pharmacy-crossroads-pharmacy-owner-donald-sparky-h 

One very prominent feature of McCoy Tygart is delivery and they make is special by using the Sparky Mobile.

Have a great New Year, and make it better by listening to and being inspired by Sparky Hedden.  

Check Out How This Big Tent Made A Big Difference For This Pharmacy

One major competitive advantage independent community pharmacies have is the ability to act fast, try new things and respond to opportunities.  

One example is The Big Tent the folks at McCoy Tygart Drug used earlier this year to help start what turned out to be a very successful way to support the curb side pick-up program  they implemented in response to the COVID pandemic.  

I spoke with Sparky Hedden, owner of this remarkable pharmacy for my podcast show, PharmacyCrossRoads.  Check it out at www.pharmacycrossroads.com

Sparky says that early in the pandemic they knew they needed to do something to serve their community.  They have a very large, 10,000+ square foot facility and many days fill 700 - 800 scripts.  So, handling this kind of volume took some quick thinking.  

They decided to invest in a large cabana type tent and set it up just in front of the pharmacy.  But, that was the easy part.  To handle the heavy amount of customer traffic they also reached out to high school and college students that were not in face-to-face classroom training to serve as "runners."  They were trained on customer service procedures, met people, found out what they wanted, took in scripts, gathered up what the patients wanted, including front-end items, and then returned with the items the patient needed.  

Sparky says the shopping center parking lot is large enough to support people waiting in their cars and the runners directed them on where to wait, captured car information so they could spot the right car, right away.  The program worked for several months.  The pharmacy is now open with face masks and social distance practices in place.  

And, to further solidify McCoy Tygart's community support image the large tent was donated to a non-profit food bank.  

If you own a pharmacy, or operate a business that cares about the future of independent community pharmacy you may find my podcast of interest, both to you and those you serve.  Learning from others is one of the keys of success in any business endeavor.  As the old saying goes, " A smart man learns from his mistakes.  A wise man learns from the mistakes of others."  Wise pharmacy owners and industry experts can learn from others at www.pharmacycrossroads.com 

One Thing I Learned From Steve Hoffart

I recently had the chance to interview Steve Hoffart for my monthly podcast show; PharmacyCrossRoads.   Steve owns Magnolia Pharmacy,  a remarkable, full-service pharmacy in Magnolia, TX.  

One area of the conversation that impressed me was our discussion on point-of-care testing.  He says about 4 years ago he was approached by Becton-Dickinson to try out their new strep and flu testing program.  After taking some training on the device and digesting the regulations associated with the program, he jumped in.  Now he says he is glad he did.  

Hoffart says that offering point-of-care testing has opened up a bridge to serving new, cash-pay, patients he might not have otherwise been able to serve.  And the testing has provided his pharmacy with a whole new range of services that he can market to people in his community. 

In addition to being a high volume pharmacy he is a compounder and a leader in nutritional supplement.  He says his compounding practice helped set the stage for his strep and flu program as he was already providing saliva testing for hormone replacement and testing to support his nutritional supplement practice.   

You can listen to the entire conversation with Steve at:   www.pharmacycrossroads.com