For retail pharmacy owners, growth and increasing revenue are always top of mind. Retail is a fickle business and in pharmacy you are also at the mercy PBMs. Though the transaction of filling prescriptions is part and parcel of a thriving pharmacy business, pharmacies are put into the precarious position of striking a balance between increasing prescriptions and expanding their portfolio of patient care and other value-based offerings. Here are 3 trends and challenges in retail pharmacy management:
1) Value of “All-in-One” Pharmacy
You cannot downplay the increasing value of the ability of retail pharmacies, especially local ones, to really get to know their patients. Not only does this provide them the upper hand in improving medication adherence which translates to higher payer performance, but it also allows for clinical upsell opportunities, such as point-of-care testing, vaccines, telehealth, wellness screenings, and both medication therapy and chronic care management. As Rich Bukovinsky, executive vice president of business development at Fort Worth, Texas-based FDS says, “As the industry continues to evolve towards a focus on patient care and clinical outcomes, leveraging solutions that helps improve financial growth while delivering exceptional care at lower costs is a prerequisite.”
2) Med-Sync is a Mega-Opportunity
Med-sync (medication synchronization) has dominated the pharmacy marketplace, especially with the mega-pharmacy conglomerates, including CVS/Aetna and Amazon. However, there are small retail pharmacies that are taking this same cue in order to improve medication adherence and to increase revenue. For example, Love Oak Pharmacy based in Eastland, Texas, has grown their small-town business by offering a med-sync program through a presorted pill box that consolidates and packages medications and OTC products into one box for one simple pick-up. This has been made possible by medication synchronization software that captures all medication and dosage data for each patient in one place. This offering rivals Amazon’s Pillpack and other similar partnerships between PBMs (Pharmacy Benefit Managers), insurance providers, and pharmacy chains, and it’s an example of a key area that smaller pharmacies need to embrace in order to compete with the mega-pharmacies.
3) The Race for Star Ratings
It is a stark reality that CMS Star Ratings impact pharmacies. The criteria for participating in many Medicare Part D networks has become more rigorous for retail pharmacies to attain, especially in the area of Star Ratings. While tied to reimbursements and DIR fees, these scores also impact a pharmacy’s continued access to insurer plans and their customer bases. This is why it’s increasingly critical for pharmacies to quickly identify patients that are negatively impacting their Medicare Star Ratings and take action. The results are beneficial to the pharmacy by maintaining a steady stream of prescription revenue and to their patients as they experience improved healthcare outcomes.
FDS provides innovative technology that enables pharmacies to thrive and successfully transition to a provider of community and population health. With solutions like, MYDATAMART, that offers comprehensive business intelligence and the analytics for complete transparency into your operations and consumer-base, FDS is driving next-gen pharmacy initiatives.
Take a look at how MYDATAMART can provide the insights to increase revenue and offer more non-dispensing services, streamline operations, and improve patient care. Learn why more pharmacies are implementing FDS solutions to grow their business.