After reading his own obituary, Mark Twain reportedly told a reporter, "The report of my death has been greatly exaggerated."  The same can be said for independent community pharmacy.  It is far from dead.  If you look around carefully you'll see many pharmacies are making changes to their business model and doing quite well.  

One of the keys to their success appears to be they don't whine and complain.  They realize pharmacy is a health care profession.  Thus, as healthcare providers they realize they can provide services beyond dispensing.  In the last few months I have interviewed pharmacy owners that are:

1. Working with a company that coordinates care for insurance companies.  They train and certify  pharmacists.  The pharmacy then helps hypertension patients control their blood pressure.   The pharmacy gets paid, through the medical billing system, $150 for a 30 minute appointment based session and each patients gets multiple sessions.  

2. Coordinating with the State Health Department one pharmacy is working with elementary schools in the neighborhood to provide pediatric immunizations.  The shots are done at the school.  The program provides a decent margin and truly benefits the less fortunate students who get their shots.    

3. One owner has, over several years of hard work, progressed to the point where physicians refer specific patients to the pharmacy for a complete nutritional review.  The patient pays, out of pocket, for an appointment based evaluation and then purchases high-grade nutraceuticals from the pharmacy.  SOAP notes are taken and a written treatment plans are provided to the referring physician.  

4. Then there is compounding.  Pet meds, pediatric dosing and hormone replacement seem to be the most common.  Owners tell me once a few doctors in the area begin to understand the value of customized medications that compounding can be professionally rewarding, and profitable.

5. One owner I spoke with is working with a grant program and has hired a community health worker.  This person makes home visits and helps patients organize all their health care appointments, facilitates medication compliance and helps people overcome other barriers to good health.  

I called on my first pharmacy 50 years ago as a "detail man" for Pfizer Pharmaceuticals.  As a brand new salesman I was amazed at how many pharmacy owners felt the profession was doomed.  The BIG fear, chains!!! 

Fifty years later, I say, "The reports of the demise of independent community pharmacy are greatly exaggerated."  Savvy pharmacy owners are doing new things and are finding success.  

                 Here's hoping something I said here will help you do more and be better.  

What's A Paradigm; and, Why $hould You Care?

I graduated from Brigham Young University in 1973.  In my senior year I took a business class from a popular but not yet well known professor, Stephen Covey.  It wasn’t until 1989 that he’d publish the book that turned him into a business icon, The 7 Habits of Highly Effective People.

Covey starts his book with the concept of a Paradigm.  The word indicates we all have a “frame of reference” we use to interpret life’s events.  The problem is, as circumstances change, it is easy to be trapped in a mind-set and that makes it difficult to adapt.

Independent community pharmacy suffers from an old, out of date paradigm.  When we think of successful pharmacies too many of us think of a pharmacy that fills a lot of prescriptions.  We don’t typically envision a pharmacy that does other things that help to improve the lives of patients. 

Change is happening fast.  Some changes are terrible, but some are really exciting.  The successful pharmacy of tomorrow will provide a variety of healthcare services.  It may help if you see yourself as a healthcare provider with an expertise in medication. 

The good news is that the kinds of services you can provide are being done by pharmacy owners right now!  Just in the past few weeks I have spoken with a handful of owners who are providing non-dispensing services, and getting paid.  Some by insurance companies, some from grants and others by consumers.  Yes, people will pay cash. Not all, or most, or even many, but some.  Just think what would happen if 10% of your patients paid you for some other healthcare product or service you provide.  

One of the most destructive paradigms that has crept into pharmacy is that if insurance doesn’t cover the cost, people won’t pay.  I visited Flower Mound Pharmacy in Texas.  The owner charges people for nutritional supplement consultations.  People with chronic conditions book an appointment, pay a fee, get an evaluation, a formal written report, recommendations and a care plan.  Then, they go out front and buy the supplements recommended.  And to top it off, they get results, feel better, and suggest that their friends do the same. 

I recently did a podcast with a pharmacy owner in Washington state.  He tells how a technology company, AssureCare, is providing him with the tools he needs to provide a profitable patient care service.  The pharmacy provides a convenient and clinically appropriate place for patients to come, by appointment, for a series of 30-minute encounters. The one he mentions is hypertension but there are others. He, and his credentialed staff help patients understand the seriousness of their condition, teach them how to properly take their blood pressure at home, and set up a care plan that helps them improve their diet, exercise and life style.  Via the vendor’s web portal this is all documented, billed and paid for by a combination of insurance coverage and patient co-pays.  Just like if it was done in a physician’s office.

Good things are happening.  Patients, prescribers, and payers need what community pharmacies can provide.  Here’s hoping you are exploring, and willing to try some new things.  It is still possible to run a profitable pharmacy.  I know because I get to visit them all the time. 

A Spectacular Front-end Gets New Pharmacy Off To A Great Start

I've spent decades working with independent pharmacies, and I know that running a profitable business while also providing excellent patient care is a constant challenge. That's why I want to share a story with you about how MatchSquare helped one independent pharmacy owner transform her front-end into a profitable space that aligns with her patient care philosophy.

Karen Hennesey is the proud owner of Wadhams Corner Pharmacy in Kimball, Michigan. When she was planning her pharmacy, she knew she wanted to create a spectacular front-end space that not only generated revenue but also helped her attract new customers. However, finding the right products and managing her front-end was a challenge, especially since she couldn't find anyone to manage it.

That's when she saw a social media post for MatchSquare, a new company that had created a front-end marketplace specifically for independent pharmacies. The ad boasted that they had sourced thousands of health, wellness, and lifestyle products that were carefully selected by merchandising professionals specifically for independent pharmacies. She contacted them and was introduced to a Personal Shopper who was beyond helpful.

With MatchSquare's help, Karen was able to turn her front-end into an even better space than she had hoped. The products are unique, attractively packaged, and sold at prices that appeal to her customers while generating attractive margins. Plus, her MatchSquare Personal Shopper eliminated the need for a front-end focused employee, saving her time and money. Together, they found ways to source products that convey the patient care philosophy that drove her to open her own pharmacy.

What I love about MatchSquare is that they understand the unique challenges of independent pharmacies and have created a program specifically for us. They have sourced unique and trendy brands that you won't find in your primary wholesaler's catalog, and their Personal Shoppers are experts at helping you find the products that align with your patient care philosophy.

Don't let your front-end be a missed opportunity for your independent pharmacy. Sign up for MatchSquare today and see the difference for yourself. Visit their website at www.matchsquare.com to learn more, and don't forget to ask about their "try-and-buy" sample box.

Take action today and see how MatchSquare can help you transform your front-end and grow your business. You won't regret it.

If You Want To Speed Up, Slow Down

Several years ago I was part of a sales team for a large technology firm.   The company, with sales approaching a billion dollars, had a dominate position in the independent hardware store and auto parts business and was eager to sell their products to independent pharmacies. 

One of the opportunities this job provided was participating in a year-long sales revamping process undertaken by a large consulting firm.

What’s this got to do with you?

During the process I learned something that will help anyone trying to manage an independent community pharmacy. The consultants came back with a whole new sales process built on the notion; if you want to speed up the sales cycle, then you need to slow down and plan more carefully.     

For some reason, the juxtaposition of the phrase, slow down to speed up, impressed me.  And, I think the idea has value for independent pharmacy owners. 

Here’s why.  If you want to grow your pharmacies sales professionally and profitably then you need to pause, take a step back and rethink what you do.  Most pharmacies are built on the idea that to be successful they need to fill more prescriptions.  While filling lots of prescriptions is helpful, it is no longer the key to success.  Low reimbursement, more expensive inventory and labor issues mean you need to do more and be better than ever before.  And, if you want to do more and be better you need to pause, ponder, plan and prepare.  That all requires time away from the pharmacy, it requires networking with others and brainstorming with you team.  In short, if you want to make more money, you need to find new, more and better ways to operate. 

The good news is other pharmacy owners have already found many of these new ways.  Some have decided to do more compounding.  Others to focus on non-pharmaceutical treatments, others have successfully adopted a cash-only model. I have a fondness for those updating the look of their pharmacy and re-invigorating the front-end.  Health services, like smoking cessation or diabetes education are common.   And of course, the most rapidly emerging areas for growth seems to be immunization.  With point-of-care, “test-to-treat,” coming in a close second. 

But, the number of choices is the problem. If you try to do too many you are likely to fail.  If you try to adopt programs you don’t have a passion for, or for which your market place is not ready, or that someone else is already doing, you are not likely to succeed.    

Which brings me back to the starting point.  If you want to speed up, slow down.  Take time to examine your strengths, understand your passions and evaluate your trade area.  Then carefully choose one or two programs and get started. 

It is possible to run a profitable community pharmacy.  Its not easy, but it is possible.  I know, because I get to see them when I travel.  The one thing that is true for each of them, they are doing something else besides filling prescriptions fast and accurately. 

Here’s hoping something you read here will help you do more and be better.   

Do Ads Still Work?

I get asked every so often, "Why don't my ads work?"

My answer, "If your ad isn't working it means you are running a crummy ad."

First, let me document that ads still work.  Have you seen the pillow guy's ads?  Yea, he's become a multi-millionaire selling pillows.  Or, how about the company that sells rubber car floor mats for five times as much as they cost at Auto Zone?    

These ads seem to work just fine.  So, what's the trick? So, here's the formula: 

        1. Have something; Good To Say

        2. Say it; Exceptionally Well

        3. Say it : Often

        4. Say it: In The Right Place

I realize this list is a bit like the NFL football coach telling his quarterback to throw a touchdown pass.  That's always the objective, but eleven other guys are working real hard to keep that from happening. 

Still, here are some more detail.  

Have something good to say means finding what it is you do in your pharmacy that truly matters to your current and prospective customers.  Hint, it's not, we've been serving the XYZ community for 50 years.  It's not, fast, friendly services.  

Try to find a hot button, something that truly speaks to your current and potential customers.  The two biggest examples I know of in the current market are; pouch packaging and medication synchronization.  

But both of these examples bring to bear the second rule, say it well.  If you are using the words adherence or compliance or synchronization in your ads then you are not, saying it well.  Consumers don't understand these terms.  

Headlines like: Too Many Pill Bottles, Too Little Time?  Or; Do You Ever Wonder If You Already Took Your Pills Today?  These headlines avoid "jargon" and speak to real concerns of "some" of your patients.  

Once you find a headline, topic and message that resonates keep using it. You and your team will soon get tired of hearing it and want to come up with something new.  Try to resist that temptation as long as you can.  

Finally, say it in the right place.  Ah, that's a real challenge.  The local newspaper, radio or cable TV station are always options.  Facebook is popular.  But the first place to start is in the store.  Window banners, shelf talkers, bag clippers, buttons for the staff and even door hangers placed on homes in your vicinity are all good places to start.  

I am a big fan of personalized email and even better, snail mail.  Sending a truly customized message to 10 patients a week telling them about the service you provide, and and how it will help them, is a time tested approach.  This takes time, but if done in a sensible manner and built into the job description of specific staff members, will pay off handsomely.  

Here's my one last thought.  The ability to do all the above is not a skill many pharmacy owners have.  Say it well means you keep it short, sweet and simple.  It means you come up with clever graphics that grab peoples attention. And, it means you come up with a call to action that gets people to call, or visit your pharmacy and ask questions.  I suggest you find an ad/marketing agency that can help you do this.  Because, ads do still work, and finding ways to build demand for services that generate the profit you  need is essential to your success.  

Something I Learned In A Class I Took From Stephen Covey

With all the challenges facing independent community pharmacy it’s easy to become overwhelmed, discouraged, and, dare I say, burnt-out? 

Perhaps some perspective will help you more effectively handle this challenge.  Years ago, it was my privilege to attend Brigham Young University and take a class from an impressive, but yet little know professor of Organizational Behavior, Stephen Covey.  In 1973, the idea for his blockbuster book, The 7 Habits of Highly Effective People, was not even on his radar screen.  But, some of the concepts he taught in my class ended up in his book.

One was a concept he called, A Paradigm Change.  At the heart of this idea is to take the same facts, but look at them from a different perspective.   

In, The 7 Habits, Covey illustrates the concept by telling how he took a subway ride on a business trip to New York City.  On the ride was a man with 2 young children.   The children were behaving badly, jumping on the benches and making a nuisance of themselves.  Covey says he looked at the father with disdain wondering how it was he did not control his kids.  As he did so the father looked up and realized what had been happening.  He apologized and explained that he and the children had just come from spending the night at the hospital where their mother had just passed away. 

Instantaneously his attitude changed, even though none of the facts had. 

So, you say, what’s your point?  

The phone rings and one of your techs says she can’t come in today.  Patients give you anxious looks wondering why it is taking so long to get their prescription even though your IVR texted them that it was ready.  Workloads are up and profits are down.  

For these and numerous other reasons industry observers are often heard to say the future of retail pharmacy is bleak. 

But, is it really? When I hear predictions that independent pharmacy is dead, I think back on the first sales calls I made only months after listening to Covey’s lecture on paradigm change.  Within weeks of graduating, in August 1973, I started working for the J. B. Roerig Division of Pfizer Pharmaceuticals. My first task was selling a line of cough and cold products to independent pharmacies in North Dakota.  As I made my calls, I was shocked to hear so many owners complain about how bad the future looked for them.  The reason, the makers of Robitussin changed their policy and decided to let chain drug stores sell the line.  

For forty-nine years I have been told independent pharmacy was dying.  Yes, I know that since 1973 tens of thousands of them have closed.  And, in the past few years that same trend is occurring in chain pharmacy.  The facts can’t be denied, things are tough.  Yet, somehow, some owners take these same facts ,but by looking at them differently, they find ways to make their pharmacies profitable.  I know, because I get to talk with talk with many of them on my podcast,  www.PharmacyCrossRoads.com

Take, for example, Shahida Choudhry, PharmD, owner of The Palms Pharmacy in Tampa, Florida. She opened a brand-new, start from scratch, pharmacy six years ago and is doing so well she is already planning to open another.  Part of her secret is sourcing unique front end products and finding effective ways to network with prescribers in her community. You can check her out at: https://www.thepalmspharmacy.com/

Then there’s Kyle McCormick, PharmD, owner of Blueberry Pharmacy in the Pittsburg, Pennsylvania area.  He has gone to an all generics, all-cash, membership model. That’s right, no PBM hassles. McCormick is meeting with so much success he is now helping others emulate his model.  Check him out at: https://blueberrypharmacy.com/

These owners, and hundreds of others, all have the same challenges but they have found a way to undergo a paradigm change by finding new, more and better ways to move forward.  Maybe you do something new and unique in your community.   

If You Own A Pharmacy You Need To Know About The DSCSA.

Pharmacists are the guardians of medications.  You know what they do, how they interact with one another and can often help prescribers find the best one for your patients.   But there is one other, perhaps even more critical thing, pharmacists need to do to make sure people get, take and actually benefit from the medications their doctor prescribed; is the medication in the bottle on your shelf actually real?  

That's what DSCSA is all about.  The acronym stands for Drug Supply Chain Security Act and its core purpose is to designate ways pharmacists can be sure the medications they dispense are real.  Counterfeiting of drugs is a real issue and the counterfeiters have become expert at finding ways to place their fake drugs into the supply chain.  That's where DSCSA comes into play.  

Passed nearly 10 years ago the regulations, up to this point, have affected mostly manufactures and distributors.  They have had to develop, with the help of industry standards and trade organizations, ways to authenticate and trace prescription medications in the supply chain.  The results of this have been most visible to retail pharmacies as the pedigree documents that come with your orders.  

While much of that "up stream" work has been done and the pressure is now on retail pharmacy to develop policies, tools and systems to assure that the products they purchase are in compliance with the new regulations.  And with more and more pharmacies utilizing secondary suppliers this process is becoming more important
and more complicated. 

I just did a podcast with two experts who talk about what this means to retail pharmacies.  It runs for about 40 minutes and includes comments from Perry Fri, EVP of the Healthcare Distribution Alliance and Leon Nevers, Director of Procurement for HEB, a world class grocery chain with pharmacies in Texas.  

You can listen to the podcast using this link:  

https://traffic.megaphone.fm/CSN2107439901.mp3?updated=1654533358

The BIG takeaway is that your primary wholesaler can help with this but you shouldn't count of them to provide you with all the tools you need.  And, the time to get started in now!  You can do that by talking with your wholesaler rep. to see what he/she can tell you and by accessing some documents prepared by the Healthcare Distribution Alliance at:  www.HDA.org/issues.

Here's hoping this information helps you prepare for the policies and procedures you'll need to put in place to meet the regulations which go into effect - with penalties - in Nov. 2023.