In 2013 the Pharmaceutical Society of Australia (PSA) conducted the Health Destination Pharmacy Trial with 14 pharmacies of different sizes, staff mix and locations.
Pharmacies actively implementing changes during the Trial phase reported an increase in net profit after only 9 months. These pharmacies experienced a range of net profit increases from $24K to $163K, with an average increase of $79K.
The Health Destination program is a tried and tested, timely solution to help you adapt your practice and align your resources toward a more health focused, financially sustainable pharmacy.
Below is one case study. See Health Destination Pharmacy Case Studies for details about case studies for the other pharmacies in the Trial phase.
This Trial pharmacy is part of a branded group, and located in a suburban shopping mall complex.
A commitment to change was clear from the start with this pharmacy. With a good awareness of their competitors, who at the time were moving in the direction of discounting, the pharmacy was keen to increase income from professional services.
The following results were achieved after the program had been in place for 9 months:
|20%||Improvement in pharmacist involvement in health advisory role|
|4%||Growth in scripts, well above industry benchmarking|
|$96K||Increase in profit|
|18%||Increase in average sale per consumer|
|240%||Increase in number of clinical interventions provided|
|29%||Wages per gross profit dollar down from 31.36% in the first quarter, well below industry benchmarking.|
Disclaimer: These results were specific to this pharmacy, and will vary according to your circumstances. PSA cannot guarantee a particular outcome. Of those pharmacies who actively engaged in the Trial, they experienced a range of increase to net profit from $24K to $163K with an average increase of $79K.
An enthusiastic and skilled staff member was assigned as the 'champion'. Working with the PSA coach, the following broad objectives were decided for the trial:
- Reposition staff to improve workflow and efficiencies, and increase health related sales
- Improve the targeting of health promotion activities
- Implement 5CPA PPI and medication management programs.
The table below lists and describes the key strategies that were implemented in the Trial Pharmacy.
|Local area analysis||Through the local area analysis conducted by PSA, they identified areas of focus for health promotion activities. The pharmacy also implemented a structured learning plan for staff training - tailored to the targeted health areas.|
|Financial analysis||Guided by the expert financial analysis the team set goals and KPIs for their services.|
|Consumer resources||The pharmacy accessed PSA's high quality health promotion material and consumer health information to improve consumer engagement.|
|Workflow||The expert workflow assessments provided the pharmacy direction for making changes to the roles and responsibilities of team members to improve efficiency. An extra pharmacist was employed. Staff was actively engaged and managers held regular meetings for planning and supporting changes. PSA's high quality training supported the pharmacy's targeted staff learning plan.|
|Professional services||The pharmacy implemented professional services such as MedsCheck and Clinical Interventions, using PSA's high quality professional service resources to assist in the implementation.|