DO YOU NEED TO OPTIMIZE YOUR PRESCRIPTION REVENUE? Knowing These 3 KPIs Will Help Decide
Maintaining profitability for your independent pharmacy can often feel like a tightrope walk. But understanding and optimizing KPIs related to prescription revenue can provide a solid foundation for making informed decisions and enhancing your pharmacy’s financial health. Let’s dive into three prescription-based KPIs every independent pharmacy owner should monitor to optimize prescription revenue and drive success. NO. 1 PERCENTAGE OF RX WITH NEGATIVE MARGINS The notion that we must battle with negative margin prescriptions filled at a loss and that this is considered commonplace is bewildering. But this is our reality, and closely monitoring the percentage of scripts filled at a negative margin is crucial. Think of your pharmacy’s revenue as a bathtub; no matter how much you fill it, it will never truly be full if there’s a significant leak. The goal is to identify and minimize these ‘leaks’ by carefully analyzing how your claims are adjudicated.
Different factors can impact this KPI, such as your Pharmacy Services Administrative Organization (PSAO) contracts and the mix of patients you serve. To calculate your KPI, you want the number of prescriptions reimbursed at $0 or less. Then, divide that number by the total number of prescriptions you filled for the same period. If you find yourself unable to lower your negative margin scripts, here are a few tactics we recommend: • Work with Craig at RxCherryPick so he can save you drastic amounts of money and improve cash flow. • Contact RetailMyMeds to help you offload losing brand names to mail orders. • Create an account with Real Value Products, which has excellent pricing on thousands of products. NO. 2 AVERAGE GROSS PROFIT DOLLARS PER RX One of our favorite KPIs, average gross profit dollars per Rx , offers a window into the overall financial efficiency of your pharmacy’s dispensing. With ever-shifting PBM rules and
Continued on Page 8 ...
TAKE A BREAK
ARBOR ARIES
CHOCOLATE DAISY DIAMOND ENVIRONMENT
GARDEN KITE RAINBOW SHOWERS
BASEBALL CHERRIES
DiversifyRx.com 3
Made with FlippingBook Ebook Creator