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/.