Strategies for Pharmacies to Grow Top Line Revenue
As pharmacies grow, owners can look at new options for top line revenue. New revenue streams can improve margins and support your community’s unmet needs and patient requests. However, not every trend in pharmacy services is best for your pharmacy.
Megan Perry, CPA, and Kathy Blanchard work with pharmacists every day and see successful development of new revenue streams. In this video, they share a few thoughts about new potential services, but also caution pharmacists about weighing cash flow needs, your pharmacy patient base and ease of service management against the positives of any new business opportunity.
Our pharmacy advisory services team can help you decide when it’s the right time to add new services—and which services—based on your financial health and other factors. For additional information, see our Master the Margin webinar series with topics on pharmacy growth and profitability.
If you prefer to read this content, the video transcript is below.
[Megan] The most important aspect for a pharmacy when it comes to identifying new growth opportunities is to understand the community that they serve. What’s the demographic, and what are the unique needs of each segment of that demographic?
[Kathy] And sometimes a pharmacy shouldn’t add services. They need to look at their store hours, they need to look at the services that they’re currently offering. Some of those services might not be serving the community need, and they can be costing the pharmacy money.
[Megan] Within communities with an aging population, this could be blood draws to test for vitamin deficiencies. Delivery services or a drive-up window is another area that is important for those with disabilities or the elderly or even busy families.
Durable medical equipment is another opportunity for pharmacies, though it needs to be well managed. The most productive scenario is when the pharmacy provides DME services on a cash-only basis, providing the necessary paperwork to the patient to submit to their insurance for reimbursement.
[Kathy] Also remember that 340B contracts are another area that a pharmacy can have great potential growth. These contracts are with covered entities and provide prescriptions at a discounted price for their patients. Remember, not all 340B contracts are written in the best interests of the pharmacy, and it’s important to have that contract reviewed by a specialist, or your team at Sykes & Company before signing it.
[Megan] CBD for pain management is a growing market for pharmacies. In addition, many pharmacies are adding CBD and vitamins for pets. People treat their pets just like another member of their family and are looking for ways to improve their quality of life.
[Kathy] But again, you need to look at your community needs, talk to your state association and other providers in your area. And offer opportunities to educate your customers on what CBD can do for them. At Sykes & Company, we’re able to help pharmacies think about their opportunities for growth and financial health. And it also gives our pharmacists peace of mind.