Retail pharmacies still play a big role in the U.S. healthcare system. They fill many prescriptions and are important places for patient care. In 2021, retail chains made up about one-third of all pharmacies and prescription revenues. Each store filled around 138,000 prescriptions a year. This number is much higher than what grocers or regional pharmacies fill. But the usual retail pharmacy business is changing. This is because of store closures, more competition, changes in what consumers want, and more digital health services.
Big chains like CVS and Walgreens have bought other companies over the past ten years. Now, they are focusing more on making their current stores work better. CVS plans to close 900 stores by 2024. Walgreens plans to close 200 stores. Both are looking to work more efficiently instead of opening more stores.
Even with these changes, many consumers want more services at their local pharmacies. Almost 40% of people said they want to get more health services there. These services include primary care, lab tests, dental care, and help with common illnesses. This shows that retail pharmacies have a chance to offer more than just medications.
Retail pharmacy chains can make more money by offering extra health services and using their wide reach and trust with customers. For example:
Medical practice leaders should look at partnerships with retail pharmacies. They should think about how pharmacies in their area can help patients with medication management, disease checks, or added health services. This could open new ways to earn money.
Ambulatory care pharmacy means pharmacy services are part of outpatient clinics and doctor’s offices. This area has grown because health systems want fewer hospital stays and better care for people with long-term illnesses. Pharmacist-led programs help with managing medicines, giving advice, supporting patients to take medicines correctly, and monitoring health. These efforts improve patient health and lower healthcare costs.
Studies and training programs from groups like AmerisourceBergen show that well-planned ambulatory care pharmacy programs can bring in money. They do this by working with current billing rules and contracts that pay for good results in care.
Important parts for growing revenue in ambulatory care pharmacy include:
Clinic owners and administrators can improve care and earn money by adding or upgrading ambulatory pharmacy services. Having pharmacists in clinics with billing plans and smooth workflows lets clinics offer more services and make more money.
Specialty pharmacy is one of the fastest-growing areas in U.S. pharmacy services. Specialty drugs often treat serious, long-term, or rare diseases like cancer, rheumatoid arthritis, and multiple sclerosis. These drugs make up a large part of pharmacy income even though they are a small part of total prescriptions.
Experts like McKinsey say specialty pharmacy revenue will grow more than 10% each year through 2028. This growth happens because of:
Specialty pharmacies face challenges like managing expensive stock, tricky reimbursement systems, supporting patients, and keeping patients on their medicines.
Health systems and medical practices can make money with specialty pharmacy by:
By treating specialty pharmacy as a key part of their work, health organizations can improve patient care and earn money. Pharmacy leaders help connect specialty pharmacy services with the overall goals of their organizations.
Technology, especially artificial intelligence (AI), is becoming more important for pharmacies. It helps improve workflows, cut costs, and find new ways to make money.
Health systems using AI tools can work more efficiently. In pharmacies, these tools help with:
Using AI and automation lets administrators and IT managers reduce manual tasks. This lets clinical staff focus more on patient care. It also helps bring in more money by making billing more accurate and workflows smoother.
As specialty and ambulatory pharmacy services grow, they will need more technology to handle complicated workflows and billing. AI fits well with healthcare trends that aim to lower costs and improve quality.
Medical practice administrators, owners, and IT managers should think about several things when growing pharmacy services. Retail, ambulatory, and specialty pharmacy areas all have different needs and ways to make money. But all require:
For healthcare groups in the U.S., growing pharmacy services beyond just filling prescriptions is a useful way to meet new healthcare needs and handle finances. By learning the details and using available technology, medical practices can gain new income from pharmacy-related areas.
The white paper aims to help pharmacy leaders improve operations and elevate the role of pharmacy to a strategic level by sharing insights and strategies that stabilize pharmacy spend, enhance clinical care, and create revenue opportunities.
The main drivers include stabilizing pharmacy spend, enhancing clinical pharmacy care, generating incremental revenue, and leveraging pharmacy leader expertise.
Health systems can transition by reviewing opportunities through national GPOs, aggregating contracts to broaden savings, and using data analytics to manage costs.
P&T committees are essential in managing drug therapy effectively, reducing provider variations and thus achieving utilization-based savings.
Incremental revenue can be created in retail, ambulatory care, and specialty areas by leveraging existing capacity and clinical strengths.
Integrating pharmacy leaders allows for improved medication management and enhances the overall effectiveness of clinical pharmacy care.
In 2017, Vizient received the designation of ‘World’s Most Ethical Company’ from the Ethisphere Institute.
Vizient’s diverse membership includes academic medical centers, community hospitals, and integrated health delivery networks, representing over $100 billion in annual purchasing volume.
Aggregated contracting broadens savings opportunities by combining purchasing power to negotiate better terms and lower prices on pharmaceuticals.
This shift enables health systems to leverage the expertise of pharmacy leaders and incorporate strategic thinking that enhances operational performance and revenue generation.
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