Profit Ignitor
Lisa Faast, PharmD
VP of Marketing and Creative Solutions at Pharmacy Development Services
lfaast@pharmacy‐owners.com
© PHARMACY DEVELOPMENT SERVICES – all rights reserved
Disclosure
• Dr. Lisa Faast has no actual or potential conflict of interest in relation to this program/presentation.
• I will not discuss off label use and/or investigational use in my presentation.
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Objectives
For Pharmacists or Technicians
• At the completion of this program, the participant will be able to:
• List the top 2 KPIs you should track in your pharmacy business
• Discuss the 5 strategies to increase profits through dispensing
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Introduction
Dr. Lisa Faast
• Opened start up 2006
• Grew to 7M & 35 employees
• With PDS since selling in 2012
Now V.P. of Marketing
& Creative Solutions
Providing Independent Pharmacies an Advantage in an Unfair Game
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The Old Game
of Pharmacy
Take anything that walks in
No control over your profits
Volume is the game
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Change Your Rx Lineup for Increased Profits
Gross Margin per Rx
$45
$40
$35
$30
$25
You can find and achieve this delta
$20
$15
$10
$5
$0
Typical Pharmacy
PDS
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3
New thinking
STARTS HERE
With
DATA MINING
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Data Mining Is…
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A way of thinking
More than the success of 1 drug
Beyond just switching
Reverse engineering your profits
A focused way to grow your bottom line
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4
5
Data Mining
5 Strategies
To Increase
Profits
Through
Dispensing
Therapeutic switch
Dosage form switch
Fill variety profitable Rx
Fill profitable Rx often
Mitigate low margin Rx
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Therapeutic Switch
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Two drugs treat similar symptoms
Often in the same drug class
One will be more profitable for pharmacy
Profitable Rx should have a therpeutic advantage or at least
neutral
Create your list for each major drug class
Examples
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Dosage Form Switch
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Same drug different salts or forms
Sometimes a therapeutic advantage
Least common form often most profitable
Low resistance to change
Examples
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5
Fill More Profitable Rx
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Most profitable drugs are by accident
Pharmacy should create a service to earn high-dollar referrals
Market to prescribers of profitable Rxs
Educate prescribers and patients on the benefits of profitable
Rxs
Examples
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Fill Profitable Rx More Often
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Increase compliance of profitable Rxs
Sync profitable Rxs
Autofill
Refill reminder
Special packaging
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Mitigate Low Margin Rx
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Reducing low/negative Rx increases profit
Buy better, secondary market
MAC appeals
Look for switching opportunities
Refuse to fill
DAW, AWP updates, reverse and rebill
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6
Are you tracking the correct KPIs for your pharmacy?
Typical KPIs in a pharmacy
• Volume
• Percent Margin
• # of refills/new
Better KPIs to track
• Average Margin per Script
• Total Margin Dollars
• Your percentage of negative scripts
Key Performance Indicators to Track
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Track Your Progress
• Doubled margin
in less than 6
months
• Relatively same
volume
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7
Questions?
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Profit Ignitor
Lisa Faast, PharmD
VP of Marketing and Creative Solutions at Pharmacy Development Services
lfaast@pharmacy‐owners.com
© PHARMACY DEVELOPMENT SERVICES – all rights reserved
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