How to Handle Negative Press

Remember the good old days when the only reason a reporter called your pharmacy was to get your professional opinion on a certain medication? Unfortunately, that is not the only reason a reporter might call upon you.

We are all quite aware of the negative press community pharmacy has been receiving this year. Whether the negative press is directed at your pharmacy or a competitor, knowing what to do in this situation is vital. The Keep Your Pharmacy Open team asked Jeff Crilley, an Emmy Winning TV Reporter out of the Dallas/Fort Worth area to help the Pharmacy Community.

“Mike Wallace is Here to See You”

By Jeff Crilley, Emmy Winning TV Reporter

There’s an old saying in corporate America, “You know it’s a going to be a rough week when your phone rings and your receptionist informs you that Mike Wallace is waiting in the lobby.”

Over the years, the famed 60 minutes correspondent has barbecued many a CEO on national TV. But as a journalist with more than two decades of experience, I can think of something even scarier---a rookie reporter on deadline covering a juicy scandal at your pharmacy.

Here now are three tips to dealing with a media crisis that I hope you’ll never need:

1) “No Comment” isn’t an Answer

I don’t care what your attorney says; “No comment” won’t cut it. I give my free crisis communications talk all over the country and I’ve spoken to dozens of bar associations. Guess what? They don’t offer media courses in law school. Attorneys are simply told to tell their clients not to talk to the media. “We won’t try this case in the court of public opinion,” is the reason most attorneys will give their clients.

But while they’re waiting for your day in court, your business is making headlines and customers are shopping for another pharmacy. I’m sorry, folks--“No comment” doesn’t make the story go away. It just goes on without you.

2) Face the Media Head On

It doesn’t mean you have to get into details of the case. Simply face the media and give reporters a statement that shows your concern. Even a short statement delivered from the heart will go a long way. Here’s something you could say that even your attorneys shouldn’t have a problem with—“We’ve devastated by the news. We’re trying to figure out what happened ourselves. But we can tell you that our employees are devastated and we’re asking for everyone’s prayers as we try to get through this.”

3) The Messenger is as Important as the Message

I’ve seen this time and time again---someone is sent out to face the media and they aren’t able to communicate. Remember, whoever talks to reporters becomes “the face” of your business. In times of crisis, whoever can best communicate the heart of your business should be the person dealing with media. It doesn’t matter how much money was spent designing the outside of your business, it’s the spokesperson who will be the architect of the message and will set the tone for the coverage. Put all egos aside and decide who is the best person to convey the heavy heart of your business.

Jeff Crilley is an Emmy Winning reporter who speaks at no charge on the subject of media relations. He’s the author of Free Publicity, the first PR book ever written by a working journalist. For more information on his book or to book him to speak to your group, visit http://www.jeffcrilley.com/.

Do you have a comment or question for Jeff? If so, post it here.

Is Anyone Else Dizzy from the All the Changes to Medicare Part D?

~Attention Medicare Patients, Caregivers, and Pharmacists~

As we prepare for 2008, many Medicare patients, their caregivers, and their pharmacists are trying to figure out the newest changes to Medicare. As if figuring out Medicare Part D the first time wasn't difficult enough.

Well, one pharmacist has had enough and wrote his Representative to give his thoughts and solutions. We are going to share this email with you here. As you read this letter, please think about what you can do to light a fire under your state Representative to get our Medicare crisis resolved. Our elderly population needs all of us to step up and follow this pharmacist's example.

11/28/2007

Representative Rick Larsen
United States House of Representatives
1529 Longworth House Office Building
Washington, DC 20515

Dear Rick:

From time to time you have been able to stop in our pharmacy when on
Lopez Island and I always felt you listened to our concerns about health
care. I thought I'd share with you what I call the Medicare Part D
Merry-Go-Round. Each year the Medicare patient must reevaluate their
respective Medicare Part D drug plan, only because the coverage that they
had during the current year can and does change each year.

Plans have low balled premiums only to raise them in latter years
with the hope that most Medicare patients won't change their plan. If they
don't raise their premium they change what they cover. If that isn't enough
the plans then still covers their drugs, but then changes the copays, or
other criteria for their drugs. This is a unbelievable complicated system
for our seniors. We try to help our patients make sense of the changes, and
when we can we provide education to them to show what their plan was, is or
will be. Again most of the plans are betting that the patient will not
change plans.

I've got a good grasp on the system and it takes me hours to
evaluate the plans, can you imagine how a Medicare patient that isn't
computer savvy feels? This system needs to be fixed and fixed now. Think
about these common sense ideas.

1. Make a fixed list of drugs that are covered for a basic, premium and
deluxe plan.
2. Make copays fixed for generics and brand name.
3. Get the rebates that are lining the pockets of the managers of these
plans into the patients pocket by getting rid of the donut hole.
4. Let the PBM's make their money by being claims processors, not slight of
hand artists in hiding their rebate dollars.
5. Remove the self-referrals that the PBM's are making by steering the
Medicare patient into their own mail order pharmacies.
6. We need to allow medications to stand on their own two feet for their
effectiveness, not how many TV ads that can generate.
These direct to consumer ads are adding huge amounts to the cost of
prescriptions in this country. We all know that more dollars are spent on
promotions than on research.
7. Finally make one plan ran by Medicare itself, not by the private plans.

Our elected officials have the power to change this system and it
must be changed. What is important is getting quality care to our seniors.

Respectfully,


Richard C.McCoy,Jr.R.Ph.
Lopez Island Pharmacy
Lopez Island, WA 98261
360-468-2616 x103

***Reproduction and publication rights are granted on this letter to
any group or individual ***

If we all take action like this one pharmacist, we can make an impact. However, the time to act is now. To find your State Representative, click here.

Start Planning Now for a Profitable 2008

I’m Dreaming of a Profitable Independent Pharmacy
Just like the ones we used to know
Where the Cash Paying Customers are Plenty
And low reimbursements don’t result in bankruptcy
And we see Independents everywhere we go

Ah yes, the good ole days. Despite the fact that there is plenty to complain about, we predict that in 20, 30, or even 40 years from now we will talk about pharmacy in the “good ole days” as we remember the ’00 years. You laugh but give us a chance to explain.

So often we all get wrapped up with “what is wrong” in pharmacy, that we don’t make changes, don’t make decisions, and continue to run our pharmacy the same old way. Thus, we can’t create good times because we are so focused on the bad stuff.

A great quote from Albert Einstein says:

“In the Middle of Every Difficulty . . . Lies Opportunity!”

We interpret that to say:

“While you continue to complain about your problems and do nothing, wise pharmacy owners see these challenges as opportunities. They have already made the necessary changes and have built a profitable pharmacy business.”

Since this is the time of year to reflect and determine what you will do differently next year, let’s utilize this time to figure out how we will make the ‘00 years the “good ole days” in pharmacy. The best way to do that is one pharmacy at a time. Let’s start with you.

By the end of 2007, we challenge you to take an entire day to reflect on your pharmacy business. Go somewhere where you can really get away from it all. Away from your pharmacy, your family, your customers, your employees, and turn off that blasted cell phone. This should be a day with no interruptions. All you need is a legal pad, a pen, and some snacks (including water) to make sure you are nourished enough to think.

Here are some questions for you to ponder and answer:

Keep Doing ~ Start Doing ~ Stop Doing

What is working in your pharmacy business? What is profitable?

What should you start doing? What are other pharmacy owners doing that you could add to your business?

What no longer makes sense and thus you should stop doing it? What (if anything) is causing you to lose money?

What insurance companies are logical to keep? Who should you drop? Should you add any? What about Medicaid and Medicare?

What else about your prescription department should you examine? What should you cut back or cut out all together? What can you add or expand in your prescription pharmacy business (Compounding, Pain Meds, Vet Medicine, and Specialty Pharmacy)?

Does it make sense to sell off all or part of your traditional pharmacy business and use that money to expand into profitable areas?

What OTC and front end business makes sense? What needs to go? Is it time to add Health & Wellness products?

What marketing worked in ‘07? What failed? Isn’t it time for a website? Is it time to change your website? What is your marketing plan for ’08?

What customers should you keep? What customers should you fire? Yes, we said fire. We give you permission to refer those high maintenance customers that give you very little business to your competition. Let the chains spin their wheels on them.

Define your target customer and figure out how to get them coming in your door.

How about your membership to NCPA? What can your association do for you? Is it time to get more involved? What about pharmacy buying groups? Should you join one? Is the one you belong to a good fit for your pharmacy practice? If not, locate one that is a better fit for your needs and join them.

By the end of the day you should have defined 3-5 big changes for 2008. These are the kind of changes that when you implement them will give you huge results and a bright pharmacy future. The kind of changes where others say, “Wow! Look at ___________ Pharmacy. I wonder what they are doing. I want to be just like them.”

One more thing before we go. Be sure to tell your spouse, your business partner, or somone what your top 3-5 target goals are for ’08. It is vital that you have someone who can hold you accountable.

If you like what you read here, please share this blog with your colleagues.

We would love to hear your comments on what you like about us and what we can change for you in 2008. Click here to give us your feedback. Anyone sending in a comment will be given a one year membership to the Keep Your Pharmacy Open Message Board.

What is Reality in the Prescription Pricing Wars?

We have all heard the jokes about myths in America:

• "This is going to hurt me more than it is going to hurt you"
• "We're from the government and we are here to help you"

Well, let's add a new MYTH

• Chain Pharmacies Always have the Lowest Prices

In this time when everyone in America is complaining about the price of medicine, it is amazing how many patients still believe that they are saving money by being loyal to a chain pharmacy.

The reality is the independent pharmacies often come in the lowest.

Channel 36, an NBC news station out of Austin Texas, put pharmacies to the test to set the record straight. Here is their story:

Prescription Prices Depend on the Pharmacy

Prescription drug safety is regulated by the Food and Drug Administration, but there are no rules on how much customers pay for prescriptions.

As it turns out, the prices customers pay depends on the pharmacies they choose.
KXAN Austin News' Matt Flener conducted price checks by calling local pharmacies and checking prices on the Internet.

Flener checked the costs of three name-brand and two generic drugs in three Austin ZIP codes, finding different prices for the same prescriptions.

At the Apothecary Shop Pharmacy in Northwest Austin, the prices come with personality.
"You're a number at some pharmacies, and here you're a person," said Apothecary Shop customer John Monaghan.

"I am allowed flexibility, because I own the place, whereas they just have to put what's on the computer," said Apothecary Shop pharmacist Tom Schnorr.

Schnorr was referring to chain pharmacies, which ended up being some of the most expensive.
At a Walgreens in Northwest Austin, the generic Zocor costs $64.99. At the Apothecary Shop less than a quarter mile away, the same drug is $18.

Walgreens explains the difference in the level of service.

"Low prices don't do you any good if the pharmacy isn't open when you need it," a company spokesman said in a statement.

"I thank God I have insurance," Monaghan said. "I really feel sorry for people that don't have insurance."

MedSavers Pharmacy claimed some of the lowest prices in the test.

"My full idea with this store was to service the uninsured population of Central Texas," said MedSavers Pharmacy owner Chris Johnson.

Johnson does not accept insurance.

"I would say it's very revolutionary," said Johnson. "I don't have to charge my patients an established price that the insurance company has established. I get to charge them based on what the drug costs me to get."

MedSavers, for instance, boasted a $31.35 price tag for a 30-day supply of generic Flonase. Walgreens, however, had the highest price: $61.99.

"When it comes to pricing, Chris' prices beat others," said MedSavers customer Gary Bruce. "I'm not going to mention other chain prices by 60 percent."

"Usually, no matter what the drug, there's going to be tens, dozens of dollars difference, you know, between pharmacy to pharmacy, so a simple call around will save somebody a lot of money," Johnson said.

Back at the Apothecary Shop, pharmacist Schnorr still boasts about lower prices.

"There are some times where somebody is charged too much," Schnorr said. "I like having Costco, I like having Walgreens down the street, 24 hours. I go home at 6:30 every day, put my key in the lock, and my clients will be taken care of at night."

"I always come here," Monaghan said. "I know when they're open. I know when they're closed, and I know when their lunch hour is."

That comes from knowing the personality and the price.

Take a look at the full results from the prescription drug price checks

So America, before you call in your next refill at your local chain, we challenge you to price your prescriptions with various pharmacies in your area. We promise, the phone calls you make will be well worth your time.

Share your thoughts on this "hot topic" and post directly to this blog.

T Minus 48 Days and Counting

That’s the amount of time Community Pharmacy has left before the Medicaid ruling could take affect. Tick Tock . . . . Tick Tock!

The good news is NCPA and NACDS have joined forces in a lawsuit to stop this train wreck before it happens. For those who have not heard about this suit, please click here for more on this hot topic. We sincerely hope NCPA & NACDS are successful in this lawsuit.

NCPA & NACDS charge that the new payment system, scheduled to take effect in 2008, is illegal because it does not reflect the actual cost of generic drugs. As a result, they said in a joint statement, "small and independent pharmacies will be forced to close their doors or drop out of Medicaid."

However, Medicaid officials (CMS) dispute the industry's calculations, saying the government actually overpaid for generic drugs under the previous system.

So, let’s get this straight. CMS is saying because they (our government) screwed up in the past, that it is the pharmacist who must be held accountable. Thus, our government is dictating that pharmacists must lose money (reimbursement will be 36% below the pharmacists acquisition cost of the drug) to make up for our government mistakes. You don't need an MBA to know that losing money is not good for any business.

We understand that CMS is trying to save the government and taxpayer’s money. However, shifting the blame to pharmacy is only adding to the problem.

Let's follow CMS logic and apply it to the price of gas. The price of gas is way too high. So, does that mean as of January 1, 2008 that all Gas Stations will be required to sell Gasoline at a price 36% below their cost? If so, why? Putting gas stations out of business isn't going to solve our oil crisis.

Look, we can all agree that the cost of prescription drugs are too high. However, there has got to be a better way to handle this problem without putting pharmacists out of business.

Do you know how to solve this problem? Please post your thoughts directly on this blog.

A Web Presence is a Must for Independent & Small Chain Pharmacies

Independent Pharmacies are among the top of the list that should have a credible ‘web presence’ so that they remain a mainstay of our American tradition during a time of ‘mass market’ overload.

In our technology oriented society, there is a list of criteria that should be followed to create an appropriate ‘web presence’ for your Pharmacy. The success of your business depends on reflecting the correct image.

Working with a Pharmacy-specific web development company that understands your needs is the first step. The ‘value’ in their knowledge can save you time and money; and gives you choices that may be important for your Pharmacy.

“Web Site” vs “Web Presence”
A web listing, is entirely different than a web presence.
Free and paid listings usually include the retailer name, location, phone number and sometimes a brief description. A ‘static’ web listing – may have 5-7 pages of never-changing information = no reason for the customer to return. This equates to a waste of dollars spent.

A ‘web presence’ is a professional web site that engages the consumer, provides current information and helps your business reach its goals. Savvy multi-channel retailers use listings, links to their web site and search engine strategies to grow traffic to their site and their Pharmacy. When judging a web site, keep the following questions in mind:

• Does the web site attract, engage and retain the preferred customers?
• Does the site provide the level of customer service consumers expect?
• Does the site offer added value that encourages the consumers to refer the site to others?
• Does the site encourage the consumers to return to the site often?

A Yellow Pages Listing is NOT A Website
An internet Yellow Pages style ‘listing’ is not a website; nor is the listing with the local Chamber of Commerce, a “co-op” site that doesn’t recognize your individual pharmacy or any of the other ‘free’ referral listings! These may actually do more harm to your image than good as they are often of lesser quality and may reflect badly on your business.

Having Control Over Your Site:
You should have 24/7 access to your site – so that you can dictate changes around your busy schedule. Patients are looking for and are interested in pertinent news articles, integrative medicine, your opinion and your recommendations. The local Pharmacist is a trusted resource for consumer health information– so make good use of your site to provide this information to your patients!

You must have easy to use Marketing tools: Like putting gas in a car, your site must have consistent marketing: E-mail promotions, communiqués, on-line coupons, informative e-newsletters, new product announcements. Reasons for customers and patients to return to your site!

To ‘e-commerce’ or not:

When considering to sell product on-line (e-commerce) you must understand:

• Having an e-commerce site is like having another retail business – you must have the inventory, space and staff to support the site needs. If you aren’t ready, start out with a content driven site and upgrade to e-commerce later.
• Don’t sell general OTC – no one is interested in buying cotton balls or bandages on your site, when they can get them in hundreds of locations. Besides, you cannot compete with the discounts that the mass merchandizing chains can offer. Use your internet ‘real estate’ wisely to reflect products that will attract your patients and increase your margins.
• Don’t sign up with a company that limits the products you want to list or requires that you sell only a particular brand type.
• Work with a company that has a Product data upload department. Their staffed with experts that will coordinate with suppliers of product you want to offer on your site
• Where possible – list ‘rich text’ information and product pictures. A good web company will work with your suppliers and distributors who can supply this type of information.

Site Counters Are A Thing of The Past:
A ‘web presence’ of today includes an easily accessed list of exactly what pages your patients and customers are going to, how many unique visitors you have had, how many people have read your personal news articles, what quantity of those customers are looking at product you have listed and what are the top ten viewed products! This is important marketing information that should be available at your fingertips.

Informative and Ever Changing:
A true ‘web presence’ Pharmacy site should give you the platform to tell your unique story and yet have some areas that automatically change ~ to keep pace with the ever changing market. You should be thinking about today’s patients that look to you for their wellness needs and tomorrow’s customers that will be drawn to your Pharmacy because of the communication, marketing and unique quality of the products that you offer.

Easy Navigation:
A patient should be able to easily navigate every page without having to hit a ‘back’ key. No irritating pop-ups and no outside links to other sites with precarious information. You should have clear separations between your store message and your ‘About Us’: these are two individual topics.

Professional Network:
This is a topic that is pharmacy-specific. If you have a network of medical professionals that you work with, share the information on your site. Patients look to you for these recommendations and your web presence is the perfect arena to share this information.

Blend Tradition With Modern:
Your Pharmacy takes great pride in the tradition of your field. Reflect ‘customer service’ as the flagship trademark of your community Pharmacy ~ with a site that stays-in-the-positive in all areas for your patients.

A good web site will help your pharmacy by attracting new customers, educating and promoting effectively to existing customers and serve as a valuable resource for your patients that will enhance their affinity towards you and your Pharmacy.

For specific questions regarding your web presence, please contact Karen Sulprizio with PharmacistsOnLine at KSulprizio@PharmacistsOnLine.com or (866)312-8324

Your Future as a Pharmacist

This post goes out to all pharmacists who are looking for a better working environment. We hear all sorts of stories regarding working conditions for pharmacists. You know what those conditions encompass. So, there is no need to list them here. Many pharmacists are frustrated but don’t know what they can do. The good news is, you do have a couple of options and we encourage you to act on one of these.

• Own your own pharmacy – Yes, Independent Pharmacy is still a very viable option. While the profit margins for traditional pharmacy are quite slim, you can be very successful in various sorts of Specialty Pharmacy. Feel free to read our article in Drug Topics, “Anyone want to Make a Profit?” to learn more.

• The Pharmacy Alliance - For those of you who are not “business owner” material and are fed up with your working conditions, TPA was created for you. The Purpose of The Pharmacy Alliance is to Foster Conditions that will allow Dignity, Self-Respect and Integrity in the Personal, Professional and Working Lives of all Pharmacy Practitioners. If you are interested in learning more about TPA or would like to be added to their email list, please contact Jim Plagakis at jpgakis@hotmail.com or Paul Trusten at trusten@grandecom.net

Once again, you do have options. You can either complain about your situation or take action. If you just complain, you have no one to blame but yourself. If you take action, you will be taking your first steps toward a better pharmacy life for you and your family.

Have You Hugged Your Independent Pharmacist Lately?

For decades Americans have considered Pharmacy as one of the most respected professions. While it is quite an accomplishment that the profession of pharmacy continues to be honored, Pharmacists need to hear this directly from people in their own community.

This is National Pharmacy month. At Keep Your Pharmacy Open we are all about Independent & Small Chain Pharmacy. Thus, we have declared this to be National Independent Pharmacy week. For those pharmacists who missed the announcement, please see our article in the October 22nd issue of Drug Topics: “Anyone want to Make a Profit?”.

Patients, think about all your independent pharmacy does for your community.

Independent & Small Chain Pharmacies are known for:

• Sponsoring little league teams


• Supporting Girl Scout & Boy Scout Troops


• Sponsoring School and Church Events


• Providing Door prizes for non-profit events


• Volunteering in your community


• Sitting on the Board of Directors for non-profits


• Providing health fairs

This is only a small list when in reality they provide a host of other items and services that a community can’t live without.

Here is a question to ponder. Where would your community be if your town did not have a pharmacy? It is sad, but this is happening in various parts of the country right now. So, think about if your pharmacy was forced to close its doors, where would you get your medicine? If the pharmacy shuts down, will the doctors hang around your community? If the doctor’s don’t hang around your town, then what happens to the hospital? Of course, if something happens to the pharmacy, the doctors, and the hospital then other businesses suffer too. There is quite a domino affect that can happen when the pharmacy leaves a town. The good news is you can help but you have to take action now.

I encourage you to transfer all of your prescriptions to your Independent or Small Chain pharmacy. If you don’t want to transfer all of them, transfer one or two for now. At least “test drive” the services at your Independent. I promise you will be amazed at how fast your prescriptions are filled and the incredible customer service you receive. Once you receive this amazing customer service, tell your neighbors, your family and your friends. You owe it to your community, to your pharmacist, and to yourself to support your local pharmacy or at least give them a try.

Once again, this is National Pharmacy Month and National Independent Pharmacy Week. If anything, please stop by your local independent pharmacy and thank them for their contributions to your community.

Why Pharmacies Need a Credible Web Site Presence

Why Are The Chains Trying To Act Like An Independent?
You’ve seen the commercials ~ on tv, in magazines and newspapers: A Chain Pharmacist offering the comforting and individual service that is only usually found in an Independent Pharmacy!

They have a Marketing Staff that does research finding where the new fields of customer base can be gathered. They have recognized what customers and patients want and now they have found the best patient base: Yours.

You Are Incredibly Busy
Too busy to answer the phones? Have a ‘gatekeeper’ that screens your calls?
Hang up on any vendors that want to present new technology?
Is there a pile of unopened mail in your pharmacy? Don’t have e-mail or don’t read it if you do?
Don’t have a professional and complete website?
Have a website that is 5-8 pages, but doesn’t create a reference for patients to return to?

If you answer ‘Yes’ to any of the above ~ you are at risk of losing customers and patients.

Cost of Keeping Customers/Patients:
According to The Harvard Business Review~
“it costs 5 times more to get new customers than keeping an existing one!

Your Unique Services Should Be Branded To You!
Individual attention, customer service, knowing your patients, compounding, health and wellness, integrative medicine, networking with local practitioners. Whether your pharmacy offers some or all of these services, you have unique and select services that your patients want!

If it’s difficult to face each day without considering it a ‘battle’ ~ with chain pharmacies, Federal Law confusions or companies attempting to pass laws that affect such crucial areas as ‘compounding’…

Let Technology Work For You:
Millions of customers and patients of all ages and income brackets rely on the web. It’s a fact.
You should be using every bit of technology available to you for continued loyalty, communication and credible health and wellness information.

PharmacistsOnLine is here to work for you and with you ~ around your busy schedule. We are as devoted to the creation of your professional ‘web presence’ as you are to your pharmacy.

Please feel free to call or e-mail me for a personal, 30 minute, on-line demonstration.
Let us work for you.
Karen Sulprizio
Pharmacy Client Associate
PharmacistsOnLine; A Living Naturally Co.
1-866-312-8324 ksulprizio@PharmacistsOnLine.com
RxLoyalty Site: http://www.rxloyaltygenius.com/ Pharmacy Demo Site: http://www.rxgenius.com/ Home Site: http://www.pharmacistsonline.com/


***Note from the Keep Your Pharmacy Open Team

In the spirit of providing solutions for various aspects of your pharmacy business, KYPO will feature "Guest Bloggers" from time to time. If you are interested in becoming a "Guest Blogger" for KYPO please visit our website http://www.keep-your-pharmacyopen.com/ and fill out the "request information" page.

What the Media Can Do For Your Pharmacy

Okay, I have got to learn to digest my breakfast before I read the paper. Once again, an article brought out my passion regarding pharmacy. The story was something about Wally World (a.k.a. Wal-Mart) and their 2nd Tier Generic Drug Program.

My initial reaction was, Argh! Why do they get so much free publicity? What a biased story! “All hail ye Wally World!” Oh please! Who made them the Patron Saint of Pharmacy? I must have missed the memo from Rome. I liked it better when they were just Arkansas’ problem.

I have already blogged about their so called $4 prescription program. To sum it up for you, that is simply smoke & mirrors. The reality is you can get some $4 prescriptions at independent pharmacies too.

Now that I have vented and gotten that out of my system, let’s examine the situation. The question goes back to why are they getting all this free publicity? Are they doing something different than the independents? The answer to that question is “YES”. All they are doing is contacting the media and their story is being published. The good news is you too can receive attention from your local media. Surprisingly enough, it is not that difficult.

Follow this simple process:

1. Visit http://www.jeffcrilley.com/ and order the book and/or CD, “Free Publicity”


2. Read Jeff’s book and/or listen to his CD


3. Follow Jeff’s advice & Take Action
   

“Free Publicity” is a must read not only for pharmacy owners but for all small business owners. This will be the one of the best investments you can make for your business. I have followed Jeff’s advice and I must admit I was quite pleased with my results.

While you are visiting Jeff’s website, be sure to sign up for his free e-newsletter and you will receive insightful media tips every week. As a matter of fact, you can find some of Jeff’s previous tips on You Tube.

Now back to what got me started, “Free Publicity”. I am challenging Pharmacy Owners across the country to contact the media with stories about Independent Pharmacy. You provide a vital service to your communities. America deserves to hear your story. Be sure to make your story "newsworthy". Jeff explains hot to do that in his book. If we get enough publicity for the Independents, then maybe that place in Arkansas will have to wait next time they want their story published.

One More Reason Why You Shouldn't Use Mail Order Pharmacy

Did you see this story “Mail Order Pharmacy Fails to Deliver”? This poor lady has been waiting a month for her prescription to be filled. Yes, you read that correctly! That is insane! She would still be waiting for the prescription had she not contacted the local media to get the problem resolved.

Of course, she could have easily had her prescriptions filled at an Independent or Small Chain Pharmacy in about 5-10 minutes. An Independent Pharmacy would have delivered it to her front door. She wouldn’t even have to walk to the mailbox. Just phone it in and they will bring it to you.

While this patient waits a month to get her prescription filled, customers of the bigger chains wait a minimum of 60-90 minutes. Why? Because their perception is they are “saving money”. News flash, getting your prescriptions filled thru mail order or a chain pharmacy may not be the best decision for you.

Before you get your next prescription filled, call around to your local community pharmacies. We think you will be surprised to hear what you are missing. Here are some questions to ask your local Independent or Small Chain Pharmacy:

• What do you charge for the same prescription?

• How much time does it take them on average to fill a prescription?

• Do you deliver?

• What other benefits to you provide versus mail order and/or big chains?

Not only does supporting your local community pharmacy make sense for you, but think of the benefits of Keeping that Pharmacy Open provides to your community.

Don't take our word for it. Call around and ask these questions. Let us hear what you discovered.

Where Do We Grow From Here?

Sometimes I long for the good old days of community pharmacy. Back when we had soda fountains, customers were not always in a big hurry, and we did not have this third party stuff to battle. If a patient came in to buy syringes they were either diabetic or wanted to “spike a watermelon”. Life was a lot easier and profit margins were much higher. Awe yes, the good ‘ole days.

Fast forward to 2007 where you have to lock up common OTC meds so the teenagers don’t make “cheese” out of it. Your list of “cash paying customers” is getting smaller. Third party prescriptions are the norm and profit margins continue to decrease.

If you are throwing your hands up in the air and saying “I quit”, please don’t. It is one thing if it is the right time to exit your business. However, please know there are plenty of opportunities for independent and small chain pharmacies. Not only can you survive but you can thrive. Here are some ideas for expanding or growing your business in a new direction:

• Compounding – every day pharmacists are customizing medications for patients who can not tolerate manufactured drugs, and every day pharmacists contact PCCA’s Pharmacy Consulting Department for recommendations on treatment options. Our business here at PCCA is assisting pharmacists in building or expanding compounding practices, practices which are both professionally and financially rewarding. If you have a passion for individualized care for the non-compliant patient, please contact PCCA for more information.
  
• Consultant and Long Term Care or Senior Care Pharmacy – Although consultant pharmacists have traditionally served as advocates for older adults in nursing facilities, the rapidly growing senior population is positioning pharmacy professionals practicing in a variety of settings to take on the role of senior care pharmacist. Please visit American Society of Consultant Pharmacists to learn more about long term care.
  
• Infusion Therapy – Due to the continuing cost-advantages, the home infusion therapy sector continues to expand and is currently estimated to represent approximately $9 - 11 billion dollar a year in U.S. health care expenditures. While there are regional variations in health care costs, the cost of infusion therapy administered in the home care setting can be one-third or less than the cost of inpatient treatment. Please visit National Home Infusion Association to learn more.
  
• Durable Medical Equipment – you can carry everything from medical beds to canes and everything in between. DME is a nice complement to a community pharmacy. You may already have a small DME section that you could easily expand. Please visit HME Today if you are interested.
  
• Specialty Pharmacy – HIV, Nuclear Pharmacy, Vet Pharmacy, Hormone Replacement Therapy, and other Specialty pharmacy areas. Some of these Specialty Pharmacy areas are Compounding medications that you can discuss with PCCA.

New pharmacy owners to owners who have been in business for 30 years are making necessary changes. Don't get left behind. Contact the non-profit Keep Your Pharmacy Open, Inc for your complimentary initial assessment. Are you ready to take the necessary actions in order to thrive in our ever changing pharmacy world?

$30,000 Retainer Fee . . . . Are You Kidding Me?

We just learned of a Merger and Acquisition company who is charging a retainer fee of $30,000 to sell Independent & Small Chain Pharmacies. Yes, $30,000 just to retain this company. Once you sign the contract and pay $30,000, you are under contract for a year. At the end of the year if they don’t sell your pharmacy, you are out $30,000. Ummm “Hello! Houston . . . we have a problem!”

The Keep Your Pharmacy Open team recommends researching 3 to 4 consultants or brokers before making a decision that is the best fit for you. The following information should help you with your research.

1. Confidentiality Agreement – Reveal very little information and nothing confidential until the consultant or broker signs a confidentiality agreement. The consultant or broker will have a confidentiality agreement they can sign and fax to you. You do not need your lawyer to develop one for you. If they don’t have one to send to you, that is a huge “red flag”. Move on to the next company to evaluate.
   
2. Industry Experience – Are they experienced in consulting pharmacy owners? Or will they consult any business owner who can fog a mirror? Pharmacy Owners have different challenges than other business owners. You need someone involved in the industry that knows and understands your challenges, the laws of pharmacy, and reimbursement rates.
   
3. Success Rate – are they successful in selling pharmacies? Are they doing a preliminary evaluation (at no cost to you) on your business before agreeing to work with you? If so, this means that they are determining if they can be successful in selling your pharmacy. This is actually a good sign for you. This means the business has integrity and is looking out for your best interest. Watch out for the ones that just want to list your pharmacy. You need someone who is going to actually sell your pharmacy not just put it on a list with others.
   
4. Retainer Fee’s – Yes, most will charge some sort of retainer. The retainer depends on how many pharmacies you are selling, the locations of your pharmacy or pharmacies, and how much work needs to be done on the front end. Typically, the retainer can range from $1,500 – $10,000. In multiple store situations the retainer is based on the time required to produce the finished work product. Anyone charging a $30,000 retainer (for one or two pharmacies) is a huge red flag. You will end up paying more money to this company than you should to sell your business and they don’t even specialize in pharmacy (another red flag).
   
5. Your Best Interest – Are they educating you on all of your options? Your pharmacy business may not be ready to sell. A good consultant or broker will recognize this and highlight all of your alternatives. They can either help you develop an exit strategy with a plan to begin selling your store in a certain time frame or recommend another firm with that expertise. Of course, you can still put the pharmacy on the market whenever you want. The good consultant will educate you on your options so that you can make the best choice.
   
6. Personality – sometimes the basic ingredients are there but the chemistry and trust factors are missing. Keep in mind this is someone that is going to be working with you for a few months. You want to make sure the communication is there, the integrity is there, and that your personalities are a good match.
   

Sellers are not the only people who need a consultant. Buyers will often hire a consultant to help them find the best pharmacy to acquire. It is vital to their success that they make the right purchase and grow at the right rate. Purchase the wrong pharmacy or growing a business to fast, could be detrimental to your business.

For a complimentary evaluation contact SHB Consultants at http://www.sell-your-pharmacy.com/.

Maximizing the Investment in Your Pharmacy

“We don’t have time to plan.

Right now we just need more business.”

~ Author Unknown

Does this quote describe you? Over the years you always knew you needed a plan but just didn’t have time to develop one. What about your “Exit Strategy”? Sure, you want to exit some day but you really haven’t planned for it because the rules of pharmacy keep changing, profit margins are getting smaller, and insurance companies have you doing more work than ever just to get a small reimbursement. Some of you may even be saying, “If this new Medicaid reimbursement plan gets implemented in January, then our government has already planned my exit”.

Of course many Independent & Small Chain Pharmacy Owners can relate to the above. We all have the same challenges. However, some are choosing to handle their challenges in a different manner. Now that you know you are not alone, let’s talk about exit strategies or succession planning.

Professional athletes provide us with some great examples. The best examples of doing it right are those who really think out their exit and leave at the top of their game. They leave the game even though their fans are begging for more.

Ideally, you want to be like that professional athlete when you exit your business. You want to leave when you and your business are at the “top of your game” with your employees and customers “begging for more”. At this point, you are worth your maximum value and you deserve to be compensated for it.

No matter if you exit now or 30 years from now, you need a plan that will help you achieve your maximize value. Here are some things to consider:

1) What goals do you want to achieve with your exit?

2) Do you want to keep the integrity of your business intact?

3) Do you want to make sure your employees and customers are taken care of without much change?

4) Who would you prefer to sell your business to? A family member? A loyal employee? Another Independent Pharmacist? Groom an up and coming young pharmacist to take over your pharmacy down the road? Or let the maximum value dictate who you should sell to?

5) Economically speaking, how are you going to transfer your pharmacy or pharmacies to the buyer if it is a family member or employee? Will they pay you throughout time? Will you have to finance their purchase?

6) Should you redefine your focus in the marketplace because of all the changes in pharmacy? Should you buy more pharmacies and/or sell one or more of your pharmacies now because of the changes in pharmacy?

These questions will start you on the path to planning your exit strategy. If you would like to discuss your options, please visit the Keep Your Pharmacy Open website to request a complimentary initial call. KYPO is a non-profit to help not only the troubled pharmacies but also help you develop the succession plan that is right for you.

Should I Stay or Should I Go?

As a Pharmacy Owner with the upcoming implementation of AMP hanging over your head, Medicare Part D, PBM’s and other pharmacy reimbursement issues, has this become your theme song? Are you frantically trying to figure out how you can sell your pharmacy while you can still get some money for it?

STOP BEFORE YOU TAKE ANY ACTION


Is the end near for Independent Pharmacy?

NO


Are the rules changing in Pharmacy?

YES


Will I need to change the way I do business in order to survive?

POSSIBLY

Important Points to Consider Regarding YOUR Future in Pharmacy:

1) My Pharmacy Future - Do I want to continue being a pharmacy owner? Seriously think about this question. Write down all the pluses and minuses of owning a pharmacy. Ask yourself, “If I sell my pharmacy today, what will I do? How will that affect my family; My future?”

2) Exit Strategy – Whether you decide to get out now or 20 years from now you should have a planned exit strategy. And no, your exit strategy is not . . . . “Medicaid and Medicare Part D forced me out.” That is not an exit strategy. You need to develop a plan in order to maximize the sale of your pharmacy when the time is right for you. This may be the right time for you or . . . . .

3) Keep Doing? Stop Doing? Start Doing? - Why did you become a Pharmacy Owner? Did you get into this business to lose money? Of course not! So, take a serious look at your business and decide what parts of it you should keep, what part(s) you should seriously consider getting rid of, and what service(s) you can add to your business.

Here’s an exercise for you. Take a half a day away from your pharmacy with no interruptions. Go to the lake, the park, the library, or wherever you think the best. Grab a legal pad and pen and take the above questions to heart. Write down everything that comes to mind.

Subsctibe to the KYPO blog or check back here frequently as the KYPO Team begin discussing topics such as exit strategies, the future of independent and small chain pharmacy, what to look for when working with a consultant or broker, tips on growing your business, where to take your pharmacy business from here, and so much more.

To answer your question, “Should I stay or Should I go?”

That Depends on YOU!

You Have to Check out this New Website to look up Medications

As a pharmacist, do your customers ever come to you confused after researching their medications on the internet hoping you can interpret all the information they just read? How would you like to be able to refer your customers to a website that is easy to navigate and that will answer their questions and concerns? Well, you need to look no further because the answer is finally here.

The National Community Pharmacists Association (N.C.P.A.), the American Pharmacists Association (APhA), the National Alliance of State Pharmacy Association (NASPA) and Mirixa Corporation have announced the beta launch of RxWiki, the first Web 2.0 medication therapy management encyclopedia for consumers, written and edited by pharmacists. RxWiki also serves as a community network for pharmacists to create and share information for their patients and consumers at large, and to collaborate in the advancement of Medication Therapy Management (MTM).

RxWiki features include:

• Medication content created by authorized pharmacists
• Latest articles from leading medical news services via RSS content syndication
• Weekly newsletter personalized for subscribing consumers
• Easy to integrate website “gadget” provides access to search RxWiki from pharmacy websites
• Free Toolbar provides search capabilities, updated information and links to other resources

KYPO checked out this website and must admit we were quite impressed. We were so impressed that we have added a permanent link under our “Pharmacist Links” and our “General Public Links” on the right side of this blog. The information RxWiki provides on the medications is quite easy to comprehend unlike most websites that offer drug information.

Pharmacists, RxWiki is looking for more Pharmacists to contribute to their site. Please visit here to find out how you can help. In addition, www.rxwiki.com would be a great link to add to your pharmacy website.

The Side Effects of Our Healthcare Crisis

An article on the front page of the Dallas Morning News set me off this morning. Check out this story “Small drugstores can’t swallow prospect of slashed payments”.

I applaud Angela Shah, the writer, and the Dallas Morning News for putting the spotlight on this “hot issue”. Reimbursement rates for pharmacies (Medicaid, Medicare, and Insurance) have been an issue for quite some time. However, the new Medicaid reimbursement rate effective in January ’08 could destroy one of the most respected professions in the nation.

Despite the fact that Pharmacists went into this profession to help their patients, Pharmacies will be forced to make a business decision. They will either have to close their doors or turn away their Medicaid patients. Neither choice is good for the patient or the community.

Thanks to Medicare Part-D, 1000 pharmacies were forced to close their doors in 2006. Now with the new Medicaid reimbursement rate, they are predicting an additional 2300 will close in early ’08 (click here for article). Do you know what closing a pharmacy does to a community? There are small towns across America who do not have a pharmacy because the pharmacy could not afford to stay in business. When the pharmacy leaves, the doctor(s) leave, and then the hospital closes its doors. Since the patients now go to another town to see their doctor and get their prescription filled, they do all their shopping in that neighboring town. It is a huge domino effect.

As for the pharmacies that don’t close, the best “business decision” for them would be to not accept Medicaid.

So, now that we have all these stores closing and the remaining independents turning away Medicaid patients, who will service all those patients? Sure the chains can pick up a little slack but how much more can they really handle? Have you seen how busy those pharmacists are in the chains? If all these independent pharmacies close, the chains won’t be able to handle the massive volume of patients coming to them. The result is an increase in prescription errors which could result in more health problems for the patients which could lead sometimes to a coma or death. Death is a nasty side effect for patients to pay because the Government won’t fix our healthcare crisis.

We as patients and citizens of this nation need to write our Representatives and demand that they solve our healthcare crisis A.S.A.P.

Pharmacy Owners if you are looking for a way to reach out and educate your patients in a cost-effective manner, we encourage you to check out Pharm Aid online. A great resource for the pharmacy community.

What You Don't Know About Your Prescription Drug Costs

Does your insurance company tell you that you can’t get a prescription filled because really “there is a better alternative to that medicine”? It may not be a better alternative for you (the patient) but it is a better alternative for the insurance company because you are saving them money.

Have you ever had to get a prescription filled at a higher dose and then required to “cut the pills in half” yourself? This is just another ploy to save your insurance company money but how does it benefit you?

Is your insurance company pressuring you to get your prescriptions filled thru their mail order house? Are they telling you how much money you can save? Have you thought to yourself, “Hey, I can get 3 months of my prescription thru the mail for the same price I can get one month at the local retail store”?

STOP BEFORE YOU SUCCUMB TO THE PRESSURE

Keep Your Pharmacy Open came across this great website Medicine & Money that patients need to read. The authors of this blog educate the patient on where your money actually goes when you get your prescription filled (it is not where you think) and what you can do about it. Bottom line, they tell you what your insurance company does not want you to know.

We encourage you to visit the Medicine & Money website and share your story about the problems you have encountered in getting your prescriptions filled. You can also go to General Public Links (on the right side of this page) and click on “Truth about prescription drug costs”.

Before you run to Walmart for your $4 prescription

We will start our first blog discussing a frustrated patient. The patient fell into the trap of the Walmart $4 prescription. So, they took their prescriptions to Walmart and found out that only 2 of the 4 prescriptions were going to be $4. Then, they waited 90 minutes to get 2 prescriptions filled. There is a reason Walmart is taking 90 minutes to fill 2 prescriptions, they want you to take the money you will be allegedly saving and spend it in their store. Bottom line, you come out spending much more than the $4 for a prescription and you just wasted 90 minutes of your time.

There seems to be a perception that Independent Pharmacies are going to always charge more than the chains. I am here to tell you that perception is NOT REALITY.

A couple of weeks ago I had 2 prescriptions filled at an Independent Pharmacy. It took the pharmacist all of 5 minutes to fill them and then the pharmacist consulted me on my new prescriptions. One prescription was $4.04 and the other was $3.51. In addition, they deliver. Had I been too sick to wait, they would have been happy to bring the medicine to me.

We want to hear from the patients in the communities and pharmacists. Let us know your thoughts on independent community pharmacy. Do you support them? Please let us know your thoughts on why you do or why you don’t support your local independent pharmacy.