Check out our November newsletter!
The Profit Vault November 2024
The Power of PSAO Analytics
Elevate Your Pharmacy’s Profitability With Smart PSAO Choices
We’re back with this month’s theme of PBM Optimization, and it’s time to unpack why selecting the right Pharmacy Services Administrative Organization (PSAO) can lead to tens of thousands in your bottom line. Now is the time for you to take a closer look at your PSAO options and take your pharmacy operations to the next level. THE BIG DEBATE: PSAO VS. DIRECT CONTRACTING First, let’s get one thing straight — about 83% of independent pharmacies are connected to a Pharmacy Services Administrative Organization (PSAO). While that’s the norm, I’m here to shake things up and tell you why sometimes going direct might just be your golden ticket.
Direct contracting allows you to navigate your pharmacy through the turbulent seas of contracts and reimbursements without handing over the wheel to anyone else. Why do I prefer this route? Simply put, it grants you more control. If you’re tied to a PSAO, and they accept a deal, you’re pretty much stuck with it, good or bad. But when you’re calling the shots, you decide which contracts to sign and which to skip, often leading to better reimbursement terms. ONE SIZE DOES NOT FIT ALL Choosing the right PSAO can be like finding a needle in a haystack. It could mean the difference between scraping by and raking in tens of thousands more each month. But here’s the kicker: Not all PSAOs will fit your pharmacy’s unique needs . Your patient demographics, the prescriptions you fill, and the insurance providers you deal with all play a massive role in determining which PSAO might benefit you the most. So, tossing a coin or picking a PSAO because your buddy uses them? Not the best strategy. Instead, think data, think analytics. This brings me to an eye-opening resource that revolutionized my view of the PSAO game. Too often, pharmacy operations can become reactionary, falling for a frenzied approach to problem-solving that leads to short- term fixes rather than sustainable growth. By grounding your business strategy in reliable data and meticulous planning, you can transform chaotic workflows into streamlined processes that not only meet immediate needs but also pave the way for long-term profitability. This strategic foresight is particularly crucial when navigating the complexities of contracts and PSAO engagements, ensuring every decision contributes to your pharmacy’s overarching goals.
Continued on Page 6 ...
DiversifyRx.com 1
WHY SOMETIMES THE BEST ANSWER IS ‘NO’
How to Handle Financial Losses From Brand-Name Prescriptions
We never want to say “no” to our patients, but sometimes, it might be the only option to save our pharmacy. Let’s dive into the often tough decisions we face today with losses on brand-name prescriptions and why, sometimes, saying “no” is necessary and the right choice for sustaining your business. THE COSTLY CONUNDRUM OF BRAND-NAME PRESCRIPTIONS As pharmacists, we primarily aim to serve our patients and ensure they receive their medications. Yet, there comes a point when you must consider the financial sustainability of your pharmacy, especially when filling certain brand-name prescriptions results in substantial losses. I’ve seen cases where these losses run into the hundreds of dollars per transaction — a situation no pharmacy can bear indefinitely. NAVIGATING LOSS-MAKING PRESCRIPTIONS When you encounter these “loser” prescriptions, the dilemma of how to proceed can be challenging. Here are two approaches I’ve considered. OPTION 1: THE DIRECT APPROACH Directly saying “no” and advising the patient to have their prescription filled elsewhere is my least favorite approach. It feels like we’re abandoning our duty to the patient. There’s also a real risk of losing not just that one customer but potentially their family and friends, too, which can ripple negatively through your business. OPTION 2: A COMPROMISE SOLUTION In my own pharmacies, we’ve adopted a more balanced strategy. We offer to transfer the prescription for the loss-making medication to a mail-order pharmacy while continuing to fill the rest of the patient’s prescriptions. This method allows us to maintain our relationship with the patient without suffering financial losses. We implemented this with the help of Retail My Meds, a fantastic resource developed by a fellow pharmacy owner and a member of PBU. This platform has been instrumental in training our staff and managing the logistics of transferring prescriptions while ensuring we still provide
excellent service to our customers. Check them out at RetailMyMeds.com .
A CAUTIONARY TALE: THE 340B PROGRAM Here’s a word of caution from my own experience — don’t overlook the details of your prescriptions. In my pharmacy, I initially missed that some of the prescriptions we labeled as financial losers were actually profitable under the 340B drug pricing program. Transferring these would have been a colossal mistake. Always double-check your pharmacy management system (PMS) and understand the full implications before deciding to transfer any prescriptions. Navigating the financial aspects of pharmacy management while maintaining strong patient relationships is a delicate balance. Always opt for strategic solutions like selective prescription transfers to protect your business’s bottom line and continue to offer personal care. Saying “no” isn’t about turning away business; it’s about making informed decisions that ensure the sustainability of your pharmacy for years to come.
561-379-7750 2
Master the 340B Maze How to Avoid Common Pitfalls in 340B Implementation
Stepping into the realm of the 340B Drug Pricing Program can be a transformative move for any independent pharmacy, but it can cost you if you’re not careful. As someone who’s navigated these waters myself, I want to share my insights
on how embracing this federal program can substantially bolster your operations, provided you approach it with the right strategy. THE NEED TO UNDERSTAND 340B FIRST First, let’s talk about what 340B actually is. This federal initiative mandates that drug manufacturers provide outpatient drugs at significantly reduced prices to eligible health care organizations. This setup primarily aids safety-net providers, including hospitals and clinics, allowing them to extend more comprehensive care to vulnerable patient groups. For pharmacies, participating in the 340B program can turn what are typically low-margin or even loss-making medications into profitable products, enhancing your bottom line significantly. MY OWN (ROUGH) JOURNEY WITH 340B Diving into 340B was not just a business decision but a learning curve. Many years ago, when I first integrated 340B into my pharmacy, I was pretty much flying blind. I mistakenly thought
Continued on Page 8 ...
TAKE A BREAK
APPLE BASKETBALL BLACK FRIDAY
NAP PARADE PIE STUFFING TURKEY VETERAN
FIREPLACE GRATITUDE LEAVES
DiversifyRx.com 3
A Win-Win for Patient Health and Pharmacy Revenue Discover the Hidden Potential of Add-On Prescriptions
We’ve learned that one of the most underutilized strategies for enhancing patient care and boosting pharmacy revenue is through add-on medications. Today, we’ll share how integrating specific add-on prescriptions into your pharmacy offerings can address side effects, combat drug-induced nutrient depletions, and simultaneously improve your bottom line. KNOW THE NEED FOR ADD-ONS Many of the medications prescribed daily come with potential side effects or cause nutrients to be depleted from the body. While we often recommend over-the-counter solutions to tackle these issues, the additional cost can often prevent patients from following through. However, there’s a viable solution that not only aids patient compliance but also adds to pharmacy profits — add-on prescriptions supported by copay cards. SEAMLESS SOLUTIONS WITH COPAY CARDS Several pharmaceutical companies provide copay cards that significantly reduce or even eliminate out-of-pocket patient costs. This is a game-changer. Patients are more likely to accept a recommendation when we can lift the financial burden. Here’s a snapshot of six effective add-on medications that can benefit your patients and your pharmacy: 1. Ursodiol (200mg and 400mg): Available from FH2 Pharma, this medication is crucial for patients undergoing significant weight loss, as it reduces the risk of gallstones. This is especially beneficial for those on GLP-1 medications or those who have had bariatric surgery. Contact info@FH2pharma.net for more information. 2. Nitrivia — 69499-0354-60: This product boosts nitric oxide levels, making it an excellent add-on for patients with erectile dysfunction, high blood pressure, diabetes, or those on a weight loss regimen. 3. Probichew — 69597-0352-30: A chewable that combines folic acid with B. coagulans, known for its weight loss benefits, making it an ideal complement for patients on weight management plans. 4. Xyzbiotic—69499-0352-10: This probiotic, an oral form of B. coagulans, is beneficial for weight loss and gastrointestinal issues.
5. Ziphex — 73308-0344-30: A comprehensive prescription multivitamin that includes iron and iodine, perfect for supporting the overall health of female patients. 6. Xyzbac — 69597-0314-30: Tailored for patients on statin therapy, this prescription multivitamin includes CoQ10 to help prevent the depletion statins can cause. WHERE TO SOURCE THESE PRODUCTS It’s important to note that these specialized products might not be available through your primary wholesalers. Secondary wholesalers like Real Value Rx, Wellgistics, or Axia are reliable sources for these medications. They offer a broad range of products that can meet the specific needs of your diverse patient base. ALWAYS HERE TO HELP If the concept of integrating add-on medications is new to you or if you have any questions about how to implement this strategy effectively, we encourage you to reach out. Our member’s message board is always active, and we’re here to support each other in optimizing our pharmacy practices. Incorporating these add-on medications not only enhances patient care by addressing comprehensive health needs but also strategically increases your pharmacy’s profits without adding significant operational burdens. This approach has been a cornerstone in sustaining and significantly growing countless independent pharmacies.
561-379-7750 4
From Glazed Eyes to Focused Minds How to Get Your Team to Embrace Your Vision
Running a successful business can seem impossible if you feel your employees aren’t listening and giving you their full attention. Have you ever talked with a team member, giving them vital instructions for a task, only for them to respond with a slow head nod and a glazed-over expression? They likely didn’t ask follow-up questions or assert that they understood your directions. They simply heard what you said and will take it from there, creating a frustrating disconnect. Many business owners and managers don’t know how to tackle this dilemma effectively. They’ll often respond negatively to their team, increasing their frustration and causing their team to feel disrespected, which worsens the situation for everyone. You can’t yell, belittle, or fire your team members when this happens; you’ll only make the problem worse and create a hostile work environment. Instead, you have to get your team to buy into the business, their daily duties, and everything else to ensure you can run a successful business for many years. So, what’s the secret to getting your team to listen to you intently? Here are three strategies you should implement to see if they improve your team’s response. GET YOUR TEAM TO BUY INTO YOUR BUSINESS AND CORE VALUES. Let’s remove the elephant from the room right away. Most people who apply to work for you and accept an offer of employment are not committed to the business and its ideals from the get-go. They initially start working for your company for a paycheck and experience in the industry. It’s during their first few days, weeks, and months that you can get them to buy into the business and
believe in your values, but they won’t do this without effort on your part. You need to figure out why your employees should believe in what you do. Start by asking yourself a few valuable questions. Why does your business exist? Why do you need a team? Why are you asking your team to perform a specific task? These shouldn’t be difficult questions for you to answer, but your employees won’t likely consider them during their daily shifts. You must explore the answers to these questions and then share them with your team. By doing so, you’re giving them a purpose behind any request. When you have the right players, sharing this information helps them get on board and emotionally connect to the business. When everyone is working toward the same goal, it creates a more friendly and productive work environment. TRUST GOES BOTH WAYS. Many business owners live with the idea that it’s my way or the highway. This does not create a great work environment. If you want your team to trust in you and what you say, you need to reciprocate it. This is a slow process and will take time to build. Don’t micromanage your team unless you have to. You hired them to do a job and take on specific responsibilities, so let them. If you find this challenging, start small. Delegate smaller tasks to your team until they’ve fully earned your trust. Then, you can pass off more significant responsibilities. This will help you build influence with your team while giving you more time to focus on tasks vital to your business’s success. BE CLEAR WITH YOUR EXPECTATIONS.
Don’t be vague. You must be clear with your team and share your expectations to achieve the desired results. Sometimes, your employees won’t know exactly what they must do to accomplish your goals. Walk them through specific tasks when necessary and explain what the result should be. Once your team understands what they need to do and why it’s crucial to the business’s overall success, they’ll be less likely to make mistakes. When your team believes in your business and everything you’re trying to accomplish, you’ll notice immediate boosts within every aspect of your business.
DiversifyRx.com 5
... continued from Cover
UNLOCK INSIGHTS WITH PSAO ANALYTICS REPORTS Imagine having a crystal ball that could tell you exactly which PSAO or direct contract could maximize your profits. That’s what a PSAO Analytics Report can do for you. I’ve seen firsthand with my Inner Circle Group how a detailed analytics report can illuminate the path to better decision-making. It’s not just about feeling good with your current setup; it’s about knowing you’re aligned with the most profitable one. Our friends at ICBN offer this stellar PSAO Analytics Report service. Their expert team can create a PSAO Analytics Report for your pharmacy for just $500 for 1 location and $100 off for each additional location. And guess what? Members get a free contract redlining session, too. This isn’t just about cutting better deals; it’s about empowering you with knowledge and strategies tailored to your specific business landscape. WHY YOU SHOULDN’T MISS OUT If you’re even slightly curious about whether you’re on the right track with your PSAO or if direct contracting could be your jackpot, consider getting an analysis done. We did it for our Inner Circle, and the revelations were game-changing.
And don’t forget, if you want to dive deeper into these insights, Kyle from ICBN will break it all down at our upcoming summit. Grab your member ticket and join us — it’s a session you won’t want to miss. Trust me, it’s one investment that pays rich dividends in clarity and strategy for your pharmacy business. Navigating the world of pharmacy contracts can be daunting, but with the right tools and insights, you can turn it into one of your most profitable ventures. It’s time to start making informed decisions and pushing your pharmacy to new heights.
HAVE A LAUGH
561-379-7750 6
THE HIDDEN REVENUE IN MEDICAL SUPPLIES Maximize Your Pharmacy’s Potential With High-Margin Medical Supplies
Most of the time, managing your pharmacy’s financials while ensuring top-notch patient care can be a not-so-fun balancing act. Fortunately, an avenue for enhancing both patient outcomes and your pharmacy’s profitability is ripe with opportunity. Here’s a breakdown of how integrating high-margin supplies can serve your patients and enhance your bottom line. THE OFTEN-OVERLOOKED OPPORTUNITY Many medications, particularly injectables, require ancillary supplies for proper administration. For instance, injectable drugs typically need alcohol swabs, needles, or pen needles. Similarly, patients using inhalers could significantly benefit from spacer devices. These aren’t just optional extras but essential for effectively administering these medications. It’s not uncommon for doctors to prescribe the medication without necessarily prescribing all the required ancillary supplies. This oversight presents a unique opportunity for pharmacy owners. If these supplies aren’t explicitly included in a prescription, take the initiative to contact
the doctor’s office for a verbal prescription, if permitted in your state. This proactive approach ensures your patients receive comprehensive care, leaving no aspect of their treatment to chance. ENHANCE PATIENT CARE AND PHARMACY REVENUE By stocking and suggesting these essential supplies, you meet a crucial patient need and add a revenue stream to your pharmacy’s operations. Products like blood pressure monitors, humidifiers, and other health devices also fall under this category. They complement the prescribed medications and contribute to overall patient health and wellness, leading to better treatment outcomes and customer satisfaction. In your quest to provide the best for clients and improve profitability, partnering with suppliers who offer high-margin products is critical. For example, Astor Drugs offers a diverse array of these high-margin medical supplies. We’ve included a snapshot of their most popular products in this month’s newsletter insert, providing easy access to profitable items that could enhance your inventory. BEYOND MEDICATION Think of medical supplies as a second-tier add-on, similar to add-on medications but in the form of necessary medical accessories. This strategy is not just about selling more products; it’s about comprehensive patient care. When you equip your patients with everything they need to manage their health effectively, you cement your role as a vital part of their health care regimen. Adding medical supplies to your pharmacy offerings is a strategic business decision that benefits everyone involved. It’s about ensuring your patients leave with their medications and the essential tools to use them effectively. So, next time you dispense an inhaler or an injectable medication, remember to check if your patient could benefit from those extra supplies. It’s a win-win: better care for them, better margins for you.
DiversifyRx.com 7
417 Ravenaux Dr. Southlake, TX 76092
561-379-7750 DiversifyRx.com
INSIDE THIS ISSUE
1
Why Your Pharmacy’s Future Depends on the Right PSAO When Saying ‘No’ Is Necessary for Pharmacy Sustainability Leverage 340B for Better Community Service and Higher Margins Enhance Patient Care and Revenue With Add-On Medications
2
3
4
5 7
The Secret to Employee Engagement
Enhance Patient Care and Increase Profits With Add-On Medical Supplies
... continued from Page 3
it’d be straightforward enough to handle solo, and the first contract turned out to be less than ideal. It was a grueling experience, but it taught me a valuable lesson about the importance of proper planning when navigating 340B. THE RIGHT SUPPORT MAKES ALL THE DIFFERENCE After my first round into 340B, I realized that having expert support could make or break your experience. This is where Secure 340B comes into play. They are not just a service provider; they are partners who simplify the 340B setup. Their team offers invaluable assistance, from selecting the right partners to integrating sophisticated analytics software that helps manage your 340B operations effectively. For anyone considering this venture, I strongly recommend partnering with Secure 340B. Their expertise ensures you avoid the pitfalls that can come with poorly managed 340B integrations. In fact, for our Essentials, Unlimited, and Inner Circle members, we’ve featured Secure 340B in a deep-dive mastermind session, which you can access by scanning the QR code above. WHY JUMP INTO 340B? Jumping into 340B can significantly enhance your pharmacy’s financial health, transforming loser prescriptions into profit
Check Out Our 340B Mastermind Session!
generators. However, it’s not just about profits; it’s about increasing your capacity to serve your community better. When you offer medications at a lower cost, you can support a broader base of customers, particularly those who might struggle with high medication costs. If you’re considering diving into the 340B program or looking to optimize your current 340B operations, don’t venture alone. Leverage experts like Secure 340B to guide you through the complexities of the program. Remember, with the right approach and support, 340B can be a substantial boon to your pharmacy, your customers, and your community. Don’t repeat my rookie mistakes — get the guidance you need and ensure your venture into 340B is as profitable and impactful as it should be.
561-379-7750 8
Published by Newsletter Pro NewsletterPro.com
Phone Number (844) 213-5774
Your Trusted Source of Uniquely Dosed Generic Medications
FH2 Unique Products
Order DirecT From FH2 Best Pricing Best Payment Options Lower Control Rx %
Find 1 Patient a Week! We believe every patient deserves the best care. We challenge you to identify at least one patient each week who could benefit from FH2 products.
9205 W. RUSSELL RD, SUITE 240 LAS VEGAS, NV 89148
INFO@FH2PHARMA.NET
Contact Astor Drugs For Their Full List
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10Made with FlippingBook Ebook Creator