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Opening New Pharmacy

Opening New Pharmacy

The opening up and start-ups of new retail pharmacies are once again on the rise. With the explosion of specialty pharmacies leading the list over the past decade, the number of new pharmacies that have opened across the nation rose to the highest level ever in every state during 2019. Of interest to many is the fact that the independent retail pharmacies are making a comeback in many communities and their growth is indicative of the health of the independent community pharmacy as a great business venture to get into.

Recent Partnership Offers a Great Solution

A recent partnership that was made public just this past week was the alliance forged between two major business institutions in Williamstown, Massachusetts: Berkshire Health Systems and Williams College. Following the shutdown and closing of the only local retail pharmacy servicing the area’s residents several years ago, both the students attending Williams College and the local neighborhood townsfolk have often experienced challenges and frustration in getting their prescriptions and medications locally.

The solution: Williams College officials and the management team at Berkshire Health Systems decided to form a “Retail Pharmacy Partnership” and announced that they would jointly open a new retail community drugstore named Williamstown Apothecary in a space already owned by the college. The proposed new retail site is currently undergoing both permitting and renovation, and is expected to officially open their doors for business in early April of this year.

“In discussions with Williams College leadership, the desire to have a pharmacy in easy walking distance from the college campus was cited as a significant need for students, faculty and staff, and will also greatly benefit the overall community,” said Darlene Rodowicz, BHS chief financial officer. “Having something close to campus was just really important, and to have a partner in that with BHS made a lot of sense.” The fact that BHS is already operating two other pharmacies (one at Berkshire Medical Center in Pittsfield and the other at Berkshire Medical Center’s North Campus in North Adams) made it clear that they were the perfect partner for Williams College to align themselves with to insure both a smooth startup of the new retail drugstore, plus the ongoing management and expertise required for a successful and profitable pharmacy startup venture. The Williamstown Apothecary will be operated by Berkshire Health Systems through its Berkshire Community Pharmacy as a full retail pharmacy with patients having access to both legend prescription drugs plus OTC (over-the-counter) medications.

What Factors Need Consideration In a New Pharmacy Startup?

There are numerous factors to consider in the planning, execution and long-term success of the opening up of and maintaining a new pharmacy business. The planning and execution are really the keys to a smooth pharmacy operation being opened and becoming a successful business. For en entire list of all tasks, duties and requirements involved in the opening up a new pharmacy, please visit our Pharmacy Startup section.

Some of the considerations and tasks that are required for a successful pharmacy business to be started begin well before the actual opening.  These may include:
– Creation and review of a business plan
– Deciding what type of corporation to form – basically of the five primary types to choose from (Limited Liability or LLC, C-Corporation, S-Corporation, Sole Proprietorship or a General partnership), most experts recommend an S-Corporation for an independent community pharmacy.
– Evaluation of proposed business location (of course most people will agree that this is perhaps the most important consideration of them all)
– Start up costs (these not only include prescription and OTC medication inventory costs, but a long list of items such as equipment, signage, advertising, insurance, security, etc. A very well done list is available at INNOVATIONS in pharmacy, although the pricing may not be as accurate and up to date as possible)
– Design recommendations
– Obtaining of the proper financing that you may require
– Assistance and guidance in the application process
– Hiring of a Pharmacy Manger and/or Pharmacist in Charge (PIC) for both the application process and inspection
– Purchasing the equipment and supplies (both for the Board of Pharmacy inspection and the actual dispensing and pharmacy operations)
– Choosing the right software and technology
– Making arrangements for the final inspection of the facility (including a mock-inspection)
– Choosing the best vendors
– Obtaining legal support
– Staffing (not only the pharmacist, but technicians and ancillary staff such as cashiers and other support personnel)

Getting Help With Opening a New Pharmacy 

HCC is the Pharmacy Consulting Company that is experienced and nationally known for starting (pharmacy start-up), moving and expanding pharmacies throughout the US for over 30+ years now. Healthcare Consultants Pharmacy Staffing has helped hundreds of satisfied Pharmacy owners through the process in almost every state. This includes the start-up and opening of independent retail community pharmacies, specialty pharmacies, mail-order pharmacies, compounding pharmacies and IV infusion pharmacies.

Once Your Pharmacy Is Open 

HCC is also always there to service your needs and available to provide you additional pharmacy services. A sampling of our pharmacy staffing and pharmacy consulting services include:
Pharmacy Staffing – This includes both temporary and permanent placement.
– Training and Compliance – HIPAA, CQI, JCAHO, OSHA, USP, Policy & Procedures; there are many state and federally required programs that must be implemented by all pharmacies. Our experts will assess your needs and help you achieve compliance through training.
Inspections and Audits – Is your pharmacy inspection coming up? We can take the anxiety out of this event by performing a pre-inspection audit. Our consultants are well-versed in each state’s Board of Pharmacy rules and regulations, plus we are able to objectively review your pharmacy opertation with a critical eye. Does your pharmacy compound medications? Our experts will assess your compliance to your state’s rules and USP guidance. We will then present our findings and recommendations to you, so that there will be no surprises during the actual inspection.
Business Performance and Efficiency – Our experts have been involved in all aspects of pharmacy practices, large and small. We can analyze and evaluate your current operation and offer insight and suggestions to improve efficiency and workflow.

If you are considering opening up a new pharmacy, we strongly urge you to get in touch with us today for a free consultation. With a history of more pharmacy startups than other pharmacy consulting companies, we offer you the support of an experienced staff who have been through the process many times and know the business inside and out! Whether you are a seasoned business professional with experience opening new pharmacies or simply considering a pharmacy venture as a new business investment, Healthcare Consultants Pharmacy Staffing can help you. With over 30+ years of experience, we have helped hundreds of business owners (pharmacists and non-pharmacists alike) open up and establish new successful pharmacy practices in almost every state. Contact us online or call us today at 800-642-1652 for a Free Consultation to discuss how we can help you.

 


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Amazons Effect On Pharmacies

Will Amazon Affect Independent Community Pharmacies?

Amazon Affect on Independant PharmaciesBy now everyone knows that the giant web-retailer Amazon has announced its intention of entering the prescription marketplace. As reported by CNBC in May of this year, Amazon is actively engaged in getting into the multi-billion dollar prescription industry. It actually seems that the same reasons that Amazon is so interested in gaining a share of this lucrative space may actually be the same reasons that the rise in new independent community pharmacies is occurring: The rise of high deductible insurance plans and a national trend showing an increased number of consumers paying for their health care services. Additionally, the recent report released by IMS Holdings (the largest health care information company) that prescription spending over the next 5 years is expected to rise by over 22% is leading many industry analysts to believe that there is plenty of room for the independent pharmacy to flourish and thrive.

Independent Community Pharmacies Have a Competitive Edge

Many feel that the local independent pharmacies actually have a competitive edge to both Amazon and the big drug chains such as Walgreens and CVS. They base this on four primary reasons:
1. Service –
According to several recent consumer surveys, customers are more willing today to pay for customer service than ever before. Especially consumers in the senior citizen population segment. Can anyone name a chain store or supermarket based pharmacy that is willing to deliver your prescriptions to your house? Several of the large chains do “promise” home delivery services, but let’s look at the “fine print”. Using Walmart as our example, take a good look at Walmart’s Home Delivery page:
– First and foremost they are basically offering a mail-order solution to their pharmacy patients.
– “Home Delivery” service equates to “mail order” as they use the US Postal system and it takes 7 to 10 days for your medications to arrive. Additionally, if you have an emergency and desperately need your prescription medication, you then will immediately understand that their home delivery service is a sham. According to the “fine print”, you need to “have your prescription called in and filled at a Walmart retail pharmacy location; there’s no option to expedite shipping for the Pharmacy Home Delivery service at this time”. If you check Walgreens and CVS you will find the same scenario.
As a basis for comparison, a quick search of “home delivery pharmacy in Orlando, Florida” on Google resulted in over a dozen (18 total) independent retail community pharmacies that were willing to deliver to a patient’s home the same day.

2. The “Community” Aspect –
Prescription sales comprise roughly 95% of the average independent’s gross revenue. Compare this to the large retail chains that average about 50% and make most of their profit on non-prescription items and front-end merchandise. Studies of the retail industry as a whole have shown that people would rather shop at stores that are local and familiar, plus where they know the employees and feel welcomed when the staff recognizes them and even knows their names. Like it says in the old Cheers TV show theme song: “You wanna be where everybody knows your name”.

Additionally, the wait time in the large chain stores is usually extremely long and as consumer surveys have shown “very stressful” to many patients. This is even more true for elderly consumers and patients. In other words, “there is an hour wait time to fill your prescription. So please wander around the store and purchase a bunch of items that you didn’t come in the store to buy and that we make a lot of profit on selling to you”. Many times a patient is extremely ill and an hour or more wait can seem like an eternity to them. Most independents are able to fill a prescription in as little as ten to fifteen minutes. Plus they are able to “push” the sick person’s Rx to the front of the queue due to the decreased prescription volume normally seen. Additionally, there are normally less patients actually waiting inside the pharmacy area, and isn’t it frequently the case that a waiting customer will say “go ahead and fill their’s ahead of mine” when someone is really sick?

3. New drugs and biologics –
The advancement of new prescription medications is increasing exponentially. Thus the emergence of specialty pharmacies. The large chains and perhaps, even Amazon, simply cannot meet the demand for these. Nor can they replace the community pharmacist when it comes to consulting on the complicated scenarios that the biologics present to dispensing.

4. An aging population –
People are living longer than ever before and that means more prescription sales. In the US alone, projections estimate that the number of citizens 65 and older will more than double from 46 million today to over 98 million by 2060. Even more significant are the projections that the senior citizen (65 and older) age group’s share of the total population will increase from the current 15% to a staggering 24%. As noted previously, with prescription sales comprising roughly 95% of the average independent’s gross revenue, the future of this aging population translates into both stability and profitability for the independent retail pharmacy.

Is Amazon Serious About Entering the Prescription Market?

The answer is that no one really knows for sure. As noted previously, CNBC reported that Amazon is actively engaged in getting into the multi-billion dollar prescription industry. Then Amazon’s purchase of Whole Foods for $13.6 billion resulted in a dramatic “pummeling” of pharmaceutical retailers such as Walmart, Costco, Kroger and Target as examples (who collectively lost an estimated $22.6 billion in market capital. The PBMs (Pharmacy Benefits Managers) were also hit hard with CVS Health Corp and Express Scripts Holding Company seeing slides in their stock prices.

However, some recent reports are questioning if Amazon really is planning on entering the game, and if so, how soon. According to the experts at MarketWatch, it is important to note that after close examination the Amazon’s earnings calls since 2006, there was absolutely no mention of pharmacy. They state that Amazon entering the pharmacy market reports “are driven by unsubstantiated and unconfirmed press reports, not by Amazon itself”.

Are You Considering a Pharmacy Startup?

The bottom line is really that Amazon will probably not affect the independent retail community pharmacy industry. Whether Amazon eventually does choose to enter the game or not, the timing to open up a new independent pharmacy business has never been better.

Pharmacy startups and opening new pharmacies have been our business now for over 28 years. Having helped open hundreds of new pharmacies, HCC ensures that all aspects of the business are covered and done right. We offer you the support of an experienced staff who have been through the process many times and know the business inside and out. Whether you are a seasoned business professional with experience or simply considering a pharmacy venture as a new business investment, HCC can help.  Contact us now online or call us at (800) 642-1652 for a Free Consultation.


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Pharmacy Startups, Purchasing an Existing Pharmacy and Pharmacy Expansions in 2017

Pharmacy Startups, Purchasing an Existing Pharmacy and Pharmacy Expansions in 2017:

Starting up a new Pharmacy in 2017? Expanding an existing Pharmacy in 2017? Considering purchasing an existing Pharmacy in 2017? If you answered YES to any of these questions, than HCC can help! Pharmacy startups, purchasing existing Pharmacies and Pharmacy expansions have been our business now for over 27 years.

If 2017 is your target date, then almost everyone needs to ask the following questions:
1. How much money will I need as a startup?
This includes initial costs, as well as ongoing for staffing if necessary and marketing. Plus perhaps various additional costs that you may not even thought of if you have a business plan already written. How much debt or equity are realistic?

2. What experts will I need?
You may have already considered an accountant, attorney, staffing, etc.
BUT the most important expert of all is a seasoned Pharmacy Consultant on your team! HCC is known for being a national leader in helping new Pharmacy owners plan, purchase, setup and staff new Pharmacies nationwide. Having helped open hundreds of new Pharmacies and Pharmacy startups, HCC ensures that all aspects of the business are covered and done right.

3. How long until I see a profit?
Everyone starts a new business such as a Pharmacy with the expectation of making money. Yet what is a realistic time-frame to expect to turn spending into profit? Plus what time period is realistic to get your initial funding back?

Pharmacy startups and opening up new Pharmacies have been our business now for over 27 years. Having helped open hundreds of new Pharmacies and startups, HCC ensures that all aspects of the business are covered and done right. If your New Year’s resolutions include opening a new Pharmacy, then the time to contact us here at HCC is now! This includes a Pharmacy startup from scratch to purchasing an existing Pharmacy business.

Starting or purchasing a new Pharmacy is a task that most people cannot plan properly for or do not want to do it on their own. There are many factors to consider in the planning, execution and the long-term success of building or purchasing, opening and maintaining a new Pharmacy business. Planning and execution are keys to a smooth Pharmacy operation being opened and becoming a successful business. Some of the considerations and tasks that Healthcare Consultants Pharmacy Staffing can provide include:

– Creation and review of a business plan
– Evaluation of proposed business location
– Design recommendations
– Obtaining financing
– Assistance and guidance in the application process
– Provide a Pharmacy Manger for both the application process and inspection
– Provide a list of equipment and supplies (both for the Board of Pharmacy inspection and the actual Pharmacy operations)
– Make arrangements for the final inspection of the facility (including a mock-inspection)
– Suggestions for vendors
– Provide legal support
– Provide staffing

If you are considering starting a new Pharmacy business (either building, purchasing or expanding an existing Pharmacy operation), we strongly urge you to get in touch with us today for a free consultation. We offer you the support of an experienced staff who have been through the process many times and know the business inside and out! Whether you are a seasoned business professional with experience opening new Pharmacies or simply considering a Pharmacy venture as a new experience and business investment, HCC can help. With over 27 years experience, Healthcare Consultants Pharmacy Staffing has helped hundreds of business owners (Pharmacists and non-Pharmacists) establish new Pharmacy businesses over the years. Contact us on line or call us today for a Free Consultation at 800-642-1652 to discuss how we can help you.


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Pharmacy Start Up – Starting a Pharmacy

Pharmacy Start Up – Starting a Pharmacy:

Owning and opening a new pharmacy can be a great idea and a lucrative business venture in many areas. Studies show that after a period of reductions in privately held pharmacy operations across the nation, new pharmacies are on the rise. Several decades ago community and independent pharmacies that were privately owned were on the decline due to the proliferation of giant chain pharmacy operations moving into many smaller communities and locales. But today that has changed. Consumers in many areas are returning as loyal customers to the smaller independent local pharmacies for better individualized services and for the specialties that many of these privately owned pharmacies now offer.

Starting a new pharmacy is a task that most people cannot or do not want to do on their own. There are many factors to consider in the planning, execution and long-term success of building, opening and maintaining a new pharmacy business. Planning and execution are keys to a smooth pharmacy operation being opened and becoming a successful business. Some of the considerations and tasks that Healthcare Consultants Pharmacy Staffing can provide include:

– Creation and review of a business plan
– Evaluation of proposed business location
– Design recommendations
– Obtaining financing
– Assistance and guidance in the application process
– Provide a Pharmacy Manger for both the application process and inspection
– Provide a list of equipment and supplies (both for the Board of Pharmacy inspection and the actual pharmacy operations)
– Make arrangements for the final inspection of the facility (including a mock-inspection)
– Suggestions for vendors
– Provide legal support
– Provide staffing

If you are considering building, purchasing or expanding an existing pharmacy operation, we strongly urge you to get in touch with us today for a free consultation. We offer you the support of an experienced staff who have been through the process many times and know the business inside and out! Whether you are a seasoned business professional with experience opening new pharmacies or simply considering a pharmacy venture as a new experience as a business investment, HCC can help. With over 25 years experience, Healthcare Consultants Pharmacy Staffing can help you. We have helped hundreds of business owners (pharmacists and non-pharmacists) establish new pharmacy practices over the years. Contact us on line or call us today for a Free Consultation at 800-642-1652 to discuss how we can help you.

Bob Miller
7/10/2014


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