Can someone explain how pharmacy is profitable?
Started by Somatic
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Not just narcies. There are ridiculously expensive ones not covered by insurance, and also not very commonly taken.
Volume.
And the profit margin may not be as small as you think. The $4 prescriptions are meant to bring people in where they will also fill their more expensive prescriptions. Finally, Walmart is not a pharmacy - it's just meant to bring people in the door, where they will do other shopping as well.
Nailed it. Walmart doesn't give a crap about how much money their pharmacy makes as long as it drives traffic to their stores. And (at least in my area) they don't have drive-thrus, so people have to come in the store to get their meds.
Its a combination of narc (all narcs, fentanyl, oxycodone, adderall, etc etc via insurance and cash, not just cash), psychiatric meds, specialty drugs, compounding. The $4 drugs are exactly that-get people in the door. Heres my lisinopril, can you fill my risperdal too? or my seroquel and my oxycodone? Yes sir I can. So a $2 dollar profit turns into $100 dollars and so on. The gross profit margins are between 18-25%, depending on what other niches you have. The profits are there if you are driven to get the business, provide service, and be willing to work a little extra.
As for the Narcs, if all you do is accept cash for narcs and refuse insurance, that is just shady. I would not recommend that; if you take ins, then you take insurance for all drugs.
Are there really pharmacists who refuse to let patients put something on insurance? That's what it sounded like to me.
Yes, there are pharmacists that will fill narcs under cash only...shady...
almost all of the places that offer cheap rx are for limited types of dirt cheap drugs like amoxicillin or hctz where you're still probably making at least 100% gross profit.
plus nowadays it's kind of a bigger effect than getting you into the front store...if you're super wal-mart and get ppl to fill there, then you're also taking away business from not just CVS, but the grocery store, hardware, tire shop, etc...
i'm kinda confused. talking with my retail colleagues in passing, they always say things like how CVS wants to push generic substitution because brand name stuff sitting on the shelf ties up money and they make more on generics (in terms of % i assume).
you are suggesting the opposite, i.e. lure them in with generics, and then they transfer their #30 seroquel, which costs more to stock for inventory but i assume also provides more $cash money$ per rx vial filled.
can you please explain this difference in mentality?
a bottle of 1000 hctz costs what like 10-13$? selling 30 @ $4 is still rolling in the dough. but that's a low extreme i guess.
if you sell a lot of seroquel, sure it ties up money keeping it on the shelf, and when you sell one you dont make as much profit as generics, but you still make a profit. and thats why corporate stresses you to only keep what you need and not have a high inventory. the money kept on the shelf multiplied by all the stores they have could be enough to potentially keep them from opening new stores.
if you sell a lot of seroquel, sure it ties up money keeping it on the shelf, and when you sell one you dont make as much profit as generics, but you still make a profit. and thats why corporate stresses you to only keep what you need and not have a high inventory. the money kept on the shelf multiplied by all the stores they have could be enough to potentially keep them from opening new stores.
Or you are like the VA, pharmacist is paid by the tax dollar. 🙂 Of course, we also get drugs dirt cheap.
You think 1000 count HCTZ for $10 is cheap in the private sector? Try 1000 count metformin for pennies! Yes, literally, pennies. The drug makers must be losing their shirt making this stuff, even the plastic bottle it comes in must cost more than what we pay.
Im using seroquel as an example. You still make money on seroquel, but id rather fill risperdone or generics all day.
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Yes. There are some pharmacies that take no insurance whatsoever, or just take certain insurance plans. I don't know of anyone who would say one patient or one drug can't use insurance though.
Happens a lot here in florida with oxycodone.
Exactly. It's called a "loss leader" They sell items at cost or even below cost, taking a loss, just to bring you into the store. This will get you to buy other items due to convenience. Walmart isn't alone in this, all supermarkets and grocery stores do this. It's why they have sales every week. You come in for the sale, they get their profit on everything else you buy.
Pharmacies refuse to accept insurance for that one drug or the patients don't want to use their insurance? I know plenty of instances of patients not wanting to use insurance, but it definitely seems shady to say that you won't take insurance on any oxy but you will on other drugs.
