Your patients rely on you to dispense the right medication for their unique needs. The same level of care should be taken when it comes to your pharmacy's financial health. We'll explore strategic and effective ways to diversify your pharmacy's revenue and ensure long-term success. So, grab your pad and pen, and get ready to build a foundation for financial well-being for your pharmacy.
Why Diversification is Crucial:
Diversification is important for several reasons. First and foremost, it helps protect your pharmacy against economic downturns and changes in the industry. By diversifying your revenue streams, you'll be less reliant on any one source of income, which can help you weather any storms that come your way. Additionally, diversification can help you attract new customers and build loyalty with existing ones. By offering a wider range of products and services, you'll be better able to meet the needs of your customers and keep them coming back to your pharmacy.
Evaluating Your Current Revenue Streams:
Before you can start diversifying your revenue, you need to evaluate your current streams. Here are some questions to ask yourself:
- What percentage of my revenue comes from prescription medications?
- Am I heavily reliant on any one payer or insurer?
- How much revenue do I generate from non-pharmacy items such as over-the-counter medications, vitamins, and supplements?
- Do I offer any additional services, such as vaccinations or health screenings?
If you find that you're heavily reliant on any one source of income or that you don't offer many non-prescription items or services, it's time to start diversifying.
Ways to Diversify Your Revenue:
Here are some specific ways to diversify your pharmacy's revenue:
- Offer Vaccinations: With the ongoing COVID-19 pandemic and strengthening flu seasons, offering vaccinations is a great way to diversify your revenue. Not only will you be helping to protect your community, but you'll also generate additional revenue from the administration of the vaccines.
- Expand Your Non-Prescription Inventory: Consider expanding your inventory to include over-the-counter medications, health and beauty products, and other non-prescription items. This can help you generate additional revenue from customers who might not need prescription medications but still need items such as pain relievers, cough syrup, or allergy medicine.
- Offer Medication Therapy Management (MTM) Services: By providing MTM services, your pharmacy can improve patient outcomes and increase revenue. MTM involves working with patients to optimize their medication regimens, ensuring they are taking the right medications at the right time, and monitoring for potential side effects. Many insurance plans and Medicare Part D programs offer reimbursement for MTM services, which can provide a new revenue stream for your pharmacy.
- Provide Specialty Pharmacy Services: Specialty medications are high-cost drugs that require special handling and administration. By offering specialty pharmacy services, your pharmacy can tap into a growing market and increase revenue. Specialty medications often require prior authorization and extensive coordination with insurance providers, but many pharmacies have found success by partnering with specialty pharmacy networks to simplify the process.
- Offer Point-of-Care Testing: Point-of-care testing allows pharmacies to provide rapid diagnostic tests for conditions such as strep throat, flu, and COVID-19. By offering these tests, your pharmacy can become a one-stop shop for patients' healthcare needs, increase foot traffic, and generate additional revenue. Some tests may require special certifications or training, but many pharmacies have found success by partnering with third-party providers to offer these services. Depending on your state’s regulations, you may be able to operate at the top of your license with a Collaborative Practice Agreement (CPA), allowing the testing and treatment of select diagnoses.
- Seek Out Paid Clinical Opportunities: Another way to diversify your revenue is by seeking out paid clinical opportunities that corollate to your pharmacy and your patients. While you expand your services, clinical opportunities will help to alert you when a patient may be in need of specific attention. You will be prompted to provide services to your patient as varying as an in-person plan review all the way to offering a flu vaccine. Clinical opportunities are the best way to monetize routine tasks & help you generate additional revenue while providing valuable services to your patients.
Diversifying your pharmacy's revenue is essential for long-term success, especially with the upcoming changes to DIR fees set for 2024. By evaluating your current revenue streams and taking steps to diversify, you'll be better able to weather any economic storms that come your way, attract new customers, and build loyalty with existing ones. Whether it's offering vaccinations, expanding your non-prescription inventory, or seeking out paid clinical opportunities, there are many ways to diversify your revenue and ensure the success of your pharmacy. So, what are you waiting for?
Start Diversifying Your Revenue Today!