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The Profit Vault May 2024
5 STEPS TO
LTC SUCCESS
The Complete Guide to LTC at-Home Services
WHY CONSIDER LTC AT-HOME SERVICES? You might wonder, “Is the extra effort worth it?” Well, incorporating LTC at-home services into your pharmacy operations can lead to higher reimbursement rates, the elimination of Direct and Indirect Remuneration (DIR) fees, and the ability to purchase medications at lower costs for eligible patients. These benefits can substantially improve the profitability of your pharmacy with minimal additional effort. Not all plans recognize LTC at-home services, but advocacy groups like the National Community Pharmacists Association (NCPA) are vigorously working to expand recognition. However, even with a modest number of qualifying patients, the financial impact can be outstanding. STEP-BY-STEP GUIDE TO IMPLEMENTING LTC AT-HOME SERVICES To tap into the benefits of LTC at-home services, follow these five essential steps: 1. Join an LTC Network Connecting with an LTC network is your first step toward integrating these services. A network can provide the necessary support and resources tailored to the needs of long-term care patients. 2. Join an LTC Group Purchasing Organization (GPO) Enrolling in an LTC GPO like GeriMed or MHA can offer significant advantages. These organizations help negotiate better prices on pharmaceuticals and medical products, thus reducing costs and improving margins. 3. Meet LTC Performance Criteria Don’t be intimidated by the performance criteria required for LTC services. While these may seem intimidating, they are entirely manageable. You do not need to provide all the services personally but must ensure access to at least:
Does lower DIR fees and higher profits sound too good to be true?Long-term care (LTC) at- home services could be the magical answer you’ve been looking for. Moving eligible prescriptions to LTC-at-home can be a great way to optimize your PBM business. Exploring LTC at-home services presents a valuable opportunity to diversify your service offerings and significantly enhance your pharmacy’s financial performance ( while sidestepping many PBM headaches ). We’re here to give you five vital steps to implement this strategy effectively.
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Say Goodbye to Negative Margins!
How to Tackle Negative Margin Prescriptions in Your Pharmacy
Your pharmacy’s profitability often hinges on managing the fine details of your business operations. That’s why watching the little details impacting your bottom line is crucial. One area where you can boost your pharmacy’s financial health is by reducing those pesky negative margin prescriptions. These are the prescriptions where what you pay for the drugs is more than what you get back in reimbursements. Let’s dive into how you can tackle this issue and see improvement in your cash flow and overall profits. WHAT’S THE DEAL WITH NEGATIVE MARGIN PRESCRIPTIONS? First, let’s talk about understanding and tracking these negative margins. Your negative margin KPI is a snapshot of how often you lose money on prescriptions. You calculate this KPI by finding the number of prescriptions where you broke even or lost money and then dividing that by the total number of prescriptions you filled during the same period. Keeping tabs on this monthly is vital because it helps you set and reach profitability goals — ideally, you want to keep this number below 5%, or even better, aim for zero. SMARTER BUYING SAVES THE DAY One big way to cut down on losses is to rethink where you’re buying your drugs. Are you getting the best deal possible? Platforms like MatchRx, Real Value Rx, EzriRx, JamsRx, TRxADE, and others are great for scouting out better prices. It’s all about buying smarter, not harder, to help boost those margins. BILLING ACCURACY IS KEY Billing might not be the most exciting part of your day, but it’s crucial. With all the complexities of pharmacy billing, errors can sneak in easily. Check regularly to ensure you aren’t being paid at U&C, your AWPs are properly updated, and the quantities you are billing are accurate. Small mistakes can lead to big losses. EXPLORING ALTERNATIVES Sometimes, the best way to handle a negative margin prescription is to look for an equally effective alternative. Talking with prescribers about other medication options in the same class or different dosage forms helps manage costs without skimping on patient care. THINK OUTSIDE THE BOX WITH MAIL ORDER If certain prescriptions just aren’t profitable, why not coordinate with a patient’s mail-order pharmacy? Services like RetailMyMeds specialize in this and can simplify the process. This way, you can provide excellent service without financial strain.
THE LAST RESORT Deciding not to fill a prescription is a tough call and should be your last resort. You must consider the wider impact, like potentially losing a patient’s family members or friends as customers. But if you’ve tried everything else, sometimes you must make that hard decision. SUPPORT AND SOLUTIONS We’ve discussed calculating this KPI in previous newsletters, but it’s not just about crunching numbers. It’s about making changes that fix the problem. RetailMyMeds, for example, has helped hundreds of pharmacies turn this challenge into a profit- making strategy and happens to be owned by a fellow member! Tackling negative margin prescriptions is about making intelligent, informed decisions that balance good patient care with your pharmacy’s financial needs. With careful adjustments and strategic thinking, you can turn this part of your business around and see real benefits to your bottom line. Let’s make sure those prescriptions start pulling their weight!
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From Inner Circle Insight to Incredible Income Transform Your Bottom Line With Strategic High-Margin Choices
THE POWER OF THE RIGHT TOOLS First, if you’re not already utilizing tools like UGO or
We just dove into strategies for reducing negative-margin prescriptions, and now it’s time to turn our attention to increasing profitable high-margin ones! It’s like flipping a coin from heads to tails, only both sides win.
EZSCRIPTRx, you might miss out on pinpointing high-margin opportunities in your inventory. These platforms are fantastic for helping you and your staff identify what we like to call the “winners” for your pharmacy. Having the right tools makes increasing your profits easier. While Luke used EZSCRIPTRx, there are many other software tools that are a goldmine of opportunity. Here are some of our favorites:
Let me share an inspiring story from one of our Inner Circle members, Luke Snell, who recently used tips from our last Inner Circle meeting into a whopping $10,000 with just a few phone calls using EZSCRIPTRx. Yes, you read that right! Success is about combining opportunity and action. Luke learned about what was working for others and took action in his own pharmacy.
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UGO
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MatchRx
EzriRx
StreamCare
BetterRx
ValueCare Suite
You don’t need to be an Inner Circle member to get access to valuable information. All members Essentials and up get access to live office hour calls every Tuesday at 10 a.m. Most weeks members report a big win from attending that call.
Scan the QR code to listen to Luke’s recent Summit talk
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TAKE A BREAK
BLOOM CINCO COMIC DERBY
EMERALD GEMINI GRADUATION LILY
MEMORIAL MOTHER RENEWAL VETERANS
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SMART MARKETING FOR HIGH PERFORMERS Elevate Your Pharmacy’s Success With Targeted High-Performer Marketing
Whether it’s a prescription or a service, you have a few high performers you should be expanding. You don’t have to go overboard. Simple marketing strategies can promote high performers in your pharmacy without requiring too much time or money. Before going straight into marketing tactics, the first step is identifying what and who your high performers are . Trust me, once you pinpoint these, the opportunities to amplify your profits can be truly eye-opening! IDENTIFY HIGH PERFORMERS Start by pulling some key reports from your Pharmacy Management System (PMS). You’ll want to look at: • Highest margin single dispensed prescriptions • Most profitable insurance providers • Top prescribers in terms of profitability Not sure how to get this data? No worries — your PMS support team can help you set up these reports. It’s about getting the right information to make informed decisions. NURTURE KEY RELATIONSHIPS Once you’ve identified your pharmacy’s champions — be it certain prescribers, patients, or specific insurance plans — it’s time to nurture those relationships. A little appreciation goes a long way. Consider sending a handwritten thank-you card to these essential prescribers or patients. It’s a personal touch that shows you don’t just see them as another transaction. Beyond thank-you notes, communicate clearly how you support services that link to these higher-margin opportunities. Let them know their
segments can open new doors and expand your network in profitable niches. TAILORED MARKETING INITIATIVES A revelation came in Lisa’s pharmacy when she discovered that local teachers’ insurance was the most profitable. This led to a targeted marketing initiative aimed at teachers, offering them special deals and personalized services. Another golden nugget? When she realized the profit potential of Accutane prescriptions, she designed a campaign that addressed common issues for doctors and patients dealing with Accutane. She solved their problems, and significantly boosted her pharmacy’s profitability and reputation. BE PROACTIVE! The key is proactive communication. Let your profitable prescribers know their business is highly valued and appreciated. Show them that you’re committed to making their jobs easier through your actions and services. This could mean streamlining the prescription process, offering additional patient consultations, or anything that adds value to their interaction with your pharmacy. Understanding and marketing to your high performers isn’t just about boosting profits — it’s about building sustainable, supportive relationships that benefit all parties involved. It transforms your pharmacy from just another community store into a vital part of your customers’ health and well-being.
So, take a moment to analyze your data, reach out with gratitude, and tailor your services to meet the needs of your most profitable segments. These steps will set you apart in the competitive pharmacy landscape. And remember, every bit of effort you
value to your business and that you’re eager for more. It’s about creating a mutual appreciation society where everyone feels valued and essential. EXPAND YOUR REACH Now, think about replication — can you find look-alikes? For instance, if a dermatologist gives you
put into recognizing and nurturing high performers not only boosts your bottom line but also reinforces the critical role your pharmacy plays
high returns, why not reach out to other dermatologists in your area? Understanding your profitable
in the community.
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7 Marketing
Secrets Every Business Should Know Humans are biologically programmed to like what they know. If they keep coming back to their internet haunts and notice your brand repeatedly, they’re more likely to trust you and convert. Keep pushing those ads; you’ll build a loyal clientele over time. ALWAYS DO MORE. Businesses often get discouraged when they first look into social media marketing. They’ll make a daily post, a weekly video, or even a podcast to attract new leads without success. As a result, they might cut their budget or quit social media marketing altogether. However, they can always do more. They could post multiple times every day, make a daily video, or start using SEO more effectively. If an ad doesn’t work, they can pivot the message. When you implement your own campaigns, developing a following takes time and perseverance, but it pays off tremendously once it happens. FOLLOW THE ‘RULE OF SEVEN.’ As we know, customers generally have an issue to solve or a pain point to alleviate by coming to your business. Once they have discovered you, they typically require seven touchpoints until making a purchase; they’ll click links, read ads, and do even more before they check out. So, optimize every point of the customer journey to be as successful as possible. Never give up or be discouraged if leads don’t bite right away, as it’s all part of the process. SELL BENEFITS, NOT FEATURES. The most successful marketing typically targets customers’ emotions because they compel action. They explain why they need something, not what it is. For example, say you’re marketing for a music streaming service. “Listen to all your favorite songs” is more persuasive than “We have a billion songs” because customers better identify with that benefit. Marketing is never easy. Creating a website isn’t enough — you must make a focused, data-driven effort to create success. However, you can always accomplish your marketing goals through a carefully structured approach leveraging these secrets and pure, simple perseverance.
Marketing is both an art and a science. Successful campaigns require an understanding of the human condition and effective strategies. Only experience can teach you the nuances, but these seven marketing secrets will aid you on your journey to build brand awareness and make impactful conversions. MARKET TO SOMEONE, NOT EVERYONE. In the age of digital marketing, you can market to your target audience directly, the ones most likely to buy your products and return. But who is your target audience? If your answer is “everyone,” reconsider. When you try to market to the “everyone” mass, you dilute your message to the point of being ineffective. Narrowing it down allows you to focus your outreach. CREATE YOUR IDEAL CUSTOMER AVATAR (ICA). An ICA is the person you’re going to sell to, a representation of those most likely to buy your product. You can even draw a picture if you want, but generally, they should have the following qualities. • Demographics: What’s their age, gender, and job title? • Location: Is your customer base in town, in-state, or international? • Psychographic: What are their values, political beliefs, and lifestyle? These are all essential in determining how best to market to your ICA. Then, put ads on their favorite blogs, social media sites, and media outlets. BE THE SOLUTION TO THEIR PROBLEMS. Everyone has challenges, both in their businesses and personal lives. Research those challenges and develop a message emphasizing how buying your product will solve their problems. Provide evidence and explanations whenever possible to bolster their trust. It shows you understand and relate to their issues. Remember, customers buy when they feel understood , not when they understand. INCORPORATE THE ‘MERE EXPOSURE EFFECT’ INTO YOUR MARKETING STRATEGY. People tend to trust things that are familiar to them, including businesses. It’s not just an off-the-cuff theory:
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significantly increase your pharmacy’s revenue and profitability! OVERCOMING CHALLENGES WITH ADDED SERVICES Adding services like 24/7 on-call pharmacists, delivery, and compounding might seem daunting, but they are among the easier tasks to implement. These services can be outsourced rather than provided in-house, simplifying the process considerably. Finding reliable contractors to handle these aspects can make adding LTC services seamless and stress-free. Embracing LTC at-home services in your pharmacy practice is about expanding your business and significantly boosting your bottom line. The key lies in strategic planning, leveraging available resources, and continuously advocating for broader acceptance of these services. For those who missed our annual conference, which included a detailed
section on the topic, check out the recording available to Essential and higher members at Membership. DiversifyRx.com/trainings/ ronna-hauser-rph-ltc-at-home- pharmacy-profit-summit-2024- dallas . This resource has additional insights and practical tips to help you successfully integrate LTC at-home services into your pharmacy. Stay tuned for updates and further resources that will aid in your journey to making LTC at-home a cornerstone of your pharmacy’s offering!
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Compliance packaging 24/7 on-call support
Delivery services Compounding
These services are essential for meeting the needs of long-term care patients and can be outsourced at a reasonable rate if necessary.
4. Qualify Patients With an Attestation Document
Use an attestation document to officially qualify your patients for LTC at-home services. Resources like NCPA LTC can provide invaluable support, helping you identify eligible patients and document their needs appropriately. 5. Grow Your LTC Business Once you’ve established which insurance plans in your area accept LTC at-home and aligned your services to meet LTC criteria, focus on marketing this aspect of your business. Growing your LTC customer base can
HAVE A LAUGH
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Incentivize to Optimize TURN HIGH-PROFIT TASKS INTO TEAM BONUS OPPORTUNITIES
Motivating your team isn’t always easy. But you need more output from them day after day. You also want to prevent burnout and for them to feel appreciated. This doesn’t mean you are stuck with the status quo. Here’s a game-changer in how you can run your pharmacies: Empower your team to contribute to the bottom line and feel genuinely excited about their work with bonus opportunities. Instead of making profit-producing tasks mandatory and damaging morale, how about you turn them into opportunities for employee bonuses? It’s about making the work rewarding in more ways than one.
daily text reminders for doses. Recognize and reward these proactive efforts with a bonus or a special acknowledgment for ensuring continuous care and maintaining pharmacy revenue. 2. Convert patients to more profitable prescriptions: We all know there are ‘winners’ every year — particularly profitable prescriptions for the pharmacy. For instance, if an employee successfully transitions a patient from regular ibuprofen to Coxanto, which is taken once a day and often comes with no copay, it’s a win-win-win for the patient, the pharmacy, and the employee. Why not reward these initiatives? If an employee sees this conversion process through, a $25 bonus (or an amount that fits your budget) could be a great incentive. GET EVERYONE INVOLVED Not all tasks need to fall on the pharmacy owners or those who aren’t in the pharmacy daily. Maybe you have a team member who enjoys visiting doctors’ offices or has a knack for customer service you can tap into for these specific tasks. It’s about recognizing and utilizing the unique strengths within your team.
BOOST YOUR BOTTOM LINE WITH BONUS OPPORTUNITIES
We’ve already discussed how one of our biggest challenges is managing negative margin prescriptions. It’s a common issue where certain prescriptions end up costing more than they earn. Instead of shouldering all that stress alone, why not involve your team in the solution? Here’s a thought: Track the reduction of these negative prescriptions by number or percentage. You could set up a system where each 1% decrease
COMMUNICATION IS KEY Lastly, it’s crucial to communicate the “why” behind these tasks and rewards. When your team understands the impact of their work on the pharmacy’s
in negative prescriptions results in a $2,000 pot divided among the team or offer $500 to a single employee managing this task effectively. This not only motivates the team but directly ties their efforts to
tangible rewards. A few other examples include:
finances and patient health and satisfaction, they’re more likely to take ownership and initiative. This approach helps your bottom line and builds a more committed, motivated team. And who doesn’t want that? Let’s
1.
Refill profitable prescriptions: Often,
highly profitable prescriptions go unfilled simply because patients forget to refill them. This is a perfect opportunity for your staff to ensure
make our pharmacies not just places of business but thriving communities where every team member feels valued and part of our success.
these prescriptions are refilled on time. Consider empowering your employees to offer personalized services like prescription delivery or
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INSIDE THIS ISSUE
1
Increase Profitability and Patient Care With LTC At‑Home Services
2
Smart Strategies to Reduce Negative Margin Prescriptions
3
Discover High-Margin Prescriptions That Deliver Results
4
How to Identify and Amplify High-Performers in Your Pharmacy
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Marketing Secrets to Stay Ahead of the Curve
Boost Your Bottom Line With Bonus Opportunities
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We encourage all of our members to get involved in our community chat. It’s a place to share your wins, learn from others, and find that next big opportunity that could significantly improve your operations. Remember, no matter your membership level, every member has access to this fantastic resource. So, do you have a high-margin win to share? Jump into the community chat and let us know! Your success could inspire a fellow pharmacy owner to achieve their own win. Let’s keep lifting each other up and pushing our pharmacies to new heights!
for allergies, itchy dermatitis, and cold symptoms. It also comes with a copay card and solid commercial plan coverage, making it a valuable addition to your pharmacy. Xyzbac (NDC 69597-314-30): An Rx‑only supplement that includes Co-Q10, which is excellent for patients on statins. Coverage has expanded in 2024, making it a more profitable option than ever.
SPOTLIGHT ON RECENT WINNERS Let’s talk specifics. Here are four high- margin prescriptions that have shown promising results recently that everyone needs to know:
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Coxanto (NDC 69499-403-60): This once-a-day NSAID is excellent for patients taking multiple doses of other medications like ibuprofen. It has about 20% coverage on commercial plans and is a game-changer for patient compliance and comfort. Oxaprozin 300mg (NDC 73308- 403-60): As the generic of Coxanto, this carries about 75% coverage with commercial plans. The brand and generic offer a generous copay card, which can be a huge draw for patients. You can learn more from their brochure by scanning the QR code! Clemastine (NDC 73308-358- 12): This prescription-only liquid antihistamine is highly effective
LEVERAGE COMMUNITY KNOWLEDGE
You are a member of a high-performing network of pharmacy owners. We can all help make each other more successful by sharing and collaborating with one another. Luke’s story is a powerful reminder that even when things seem tough in the pharmacy world, there are still untapped opportunities to boost your bottom line. It’s all about identifying those winners and making the most of them!
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