My Pharm Start Up Blog. No Retail Experience, No Partners, Quit current job.

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Has the wholesaler seen your business plan? If they have, and they're nasty to deal with, you might not have a sound plan.
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NO they did not. Account manager in my area push me to have opening inventory of $54,000 and when I said I want to start with lower amt. like $30,000 he did not call me back (two wholesalers)
 
rmflawk said:
NO they did not. Account manager in my area push me to have opening inventory of $54,000 and when I said I want to start with lower amt. like $30,000 he did not call me back (two wholesalers)
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We started with an open inventory of $34000. We now have a $250,000 to $275000 inventory.
 
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Hey

Any updates on how the pharmacy is doing?

Had to actually switch wholesalers myself. Not sure what to think about AmerisourceBergen's new deal with Walgreens.
 
southpharmindy said:
Hey

Any updates on how the pharmacy is doing?

Had to actually switch wholesalers myself. Not sure what to think about AmerisourceBergen's new deal with Walgreens.
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Why did you have to switch wholesalers? I bought a 130 bed ALF and been super busy with that. Good business though!
 
The level of service had gone down. I had 3 different account managers in the last year.

There is also the issue of controls. I was being limited, which has never happened before, on ridiculous items like ativan, serax, and librium. Not sure what the DEA is thinking but the wholesalers are scared to death.
 
southpharmindy said:
The level of service had gone down. I had 3 different account managers in the last year.

There is also the issue of controls. I was being limited, which has never happened before, on ridiculous items like ativan, serax, and librium. Not sure what the DEA is thinking but the wholesalers are scared to death.
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We are all being limited. Our control percent is way down. But every person in pinellas county is on some some of control. Smith drug is pretty good. No complaints. Small company but fair.
 
Do you exclusively deal with Smith Drug? You used to be with Cardinal I remember. I really like Smith as a company but I don't think they could meet the prices that Mckesson gives us. Really like Miami Lukin as well.

Everybody in my area is on a controlled drug as well. In WV we have NO white collar industry. People work for 30 years in the coal mines and their bodies are done. We have a larger percentage of retired people in my area than Florida.

Some of the young people that have spent 3-4 years in that industry can be physically ruined too. We're also ground zero for drug abuse.

Its extremely hard to tease the legit from the non-legit.

Needless to say WV and eastern KY will have a higher percentage of controls than a high income area like Raleigh, NC or Charlottesville, Va.
 
southpharmindy said:
Do you exclusively deal with Smith Drug? You used to be with Cardinal I remember. I really like Smith as a company but I don't think they could meet the prices that Mckesson gives us. Really like Miami Lukin as well.

Everybody in my area is on a controlled drug as well. In WV we have NO white collar industry. People work for 30 years in the coal mines and their bodies are done. We have a larger percentage of retired people in my area than Florida.

Some of the young people that have spent 3-4 years in that industry can be physically ruined too. We're also ground zero for drug abuse.

Its extremely hard to tease the legit from the non-legit.

Needless to say WV and eastern KY will have a higher percentage of controls than a high income area like Raleigh, NC or Charlottesville, Va.
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We deal exclusive with Smith Drug. We might buy non controls from ANDA and Capital Drugs once in a while.
 
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We're with EPIC now too with Mckesson as our primary wholesaler. I really like Smith Drug but they don't service my area. It seems like they go out of their way to help independent stores both in the pharmacy and OTC.

I can't tell any difference between any of the other buying groups.

We looked at API but they wanted us to have cost -3.75 on our brands. Their generics were cheaper but you can get cheap generic drugs anywhere.
 
southpharmindy said:
We're with EPIC now too with Mckesson as our primary wholesaler. I really like Smith Drug but they don't service my area. It seems like they go out of their way to help independent stores both in the pharmacy and OTC.

I can't tell any difference between any of the other buying groups.

We looked at API but they wanted us to have cost -3.75 on our brands. Their generics were cheaper but you can get cheap generic drugs anywhere.
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We have been maximizing our purchases from the API warehouse and we are getting some pretty fat rebates, it has really been making a big difference for us. API is not the best on brands, but they also dont carry many brands and when they do we come out ahead of Cardinal on most if not all.
 
This is great blog !!
i'm looking for advices on how to negotiate the reimbursement rate with different private insurance .
Please help ....Thanks
 
You don't negotiate.

You hope that your third party administrator is working hard on your behalf although I doubt it looking at my reimbursements this month on Plavix. I'm now getting paid 4.04 from one private insurance!!

Most people go through Access Health, Leadernet, Good Neighbor Pharmacy, Epic Pharmacy that I've seen. Your reimbursements will be the same. Take it or leave it contracts.

If you have any specific questions I'd be glad to help if I can. I desperately want independents to take back our profession.
 
BTW

HPower any updates? Really looking forward to seeing how things are working out for you.
 
southpharmindy said:
You don't negotiate.

You hope that your third party administrator is working hard on your behalf although I doubt it looking at my reimbursements this month on Plavix. I'm now getting paid 4.04 from one private insurance!!

Most people go through Access Health, Leadernet, Good Neighbor Pharmacy, Epic Pharmacy that I've seen. Your reimbursements will be the same. Take it or leave it contracts.

If you have any specific questions I'd be glad to help if I can. I desperately want independents to take back our profession.
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I am new member to this forum, however I have been following this thread since last year. I followed the model outlined In this forum and am in the build-out phase. I leave in NC and currently talking to Mutual drug about drug supply. My question is this. Which is a good software and POS system to buy since keeping overhead low is the goal? Any advise is appreciated. So far I have been estimating about $10000 for this but am not sure if its too high or low.
 
southpharmindy said:
You don't negotiate.

You hope that your third party administrator is working hard on your behalf although I doubt it looking at my reimbursements this month on Plavix. I'm now getting paid 4.04 from one private insurance!!

Most people go through Access Health, Leadernet, Good Neighbor Pharmacy, Epic Pharmacy that I've seen. Your reimbursements will be the same. Take it or leave it contracts.

If you have any specific questions I'd be glad to help if I can. I desperately want independents to take back our profession.
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Thanks for your advice Southpharmindy ! Did you have to secure a loan for your pharm? did you have to go thru small business program loan? any advice on that ? and how long before your pharmacy open, did you quit your prev. job? Thanks
 
Brickdoor

I like Rx30. Its cheap (8000k), the service is awesome, and its easy to use. I'm in the process of implementing all of their workflow features such as prescription scanning right now. I def. recommend spending the extra money and putting that in upfront. From what I understand it really decreases your error rate.

I also really like Mutual Drug. If I ever open a store in NC, SC, or VA I would def. look into them. Seems like they do a lot to help independent stores. Might also want to look at Smith Drug.

Rxv,

I don't own my own store yet. I've run an independent store for 4 years but plan to have my own in the future.

You need to have anywhere from 10-25% up front to secure a loan.

My plan is to buy out an existing pharmacy. Work out an exit strategy with the current owner. Buy half of the business upfront and then in so many years (say 5) buy out the rest of the business. Then in a few more years buy the building. The bank is much more likely to grant you a loan if the current owner holds onto so much of the business as its less risky. Its also easier and less risky to come up with 300k than 800k.

I like a sure thing when I put my money into something. If you buy an existing business, particularly one that has a lot of potential and needs new blood, you're less likely to lose your shirt. You have an established cash flow and there are a ton of old guys looking to get out.
 
Oh yeah, a couple of pitfalls I've heard recently

When you first buy or start a store renting is a great idea but be careful. Sometimes a competitor will come in and buy the building at a much higher rate than the building is worth and force you to sell your business at a fire sell price.

You always have to have an accountant and a lawyer. Have your lawyer draw up a lease contract that says something along the lines of "I have right of first refusal if the building comes up for sell AT APPRAISED MARKET PRICE" and have the building owner sign it.
 
Good plan there Southpharm!

...on another note, independent owners/managers out there, what do you think of Walgreens and Amerisource merging deal?:rolleyes:
 
Thank You Southpharmindy. The reason I ask is because NC requires that you place a sticker of your bottle label on the application while applying for a permit. So I will demo Rx30, pioneer, datascan and HBS tomorrow and hopefully make a decision immediately and have them send me a label.
 
Great Thread! So much to learn from everyone new & experienced.

I'm also interested in pharmacy ownership, but my situation is different in that I might get the opportunity to buy 50% ownership of the current pharmacy I work for if everything goes well (so basically I'm taking the easy route :oops: )

I would like to know what is a reasonable buyout price (based off of sales/profit margins/building costs/fees, etc and future outlook) . Also, does it sound wrong for the owner to demand a flat royalty (if I'm using the right word) for a certain amount of years after they sell their portion? Sounds messed up to me, but on the other hand this person is very knowledgeable in the business aspect and will always be around for advice, assistance.

Thanks
 
Do I need to have an In-bound IVR from the start of my pharmacy and if I do, how much should I reasonable expect to pay because Ateb Inc quoted $6700 for 4 port line. I am beginning to think that I only need 1 port line and then I can make the other lines rollover to the lines if its busy.

Will someone advise me.
I have decided to go with RX30 for $7700 even though I have not signed the contract.

Thanks
 
Can any independent pharmacist do compounding? Or are there any certain policies/procedures/requirements that he/she must obtain before being allowed to do compounding?
 
reading this really wants me to get into this

good for all of you to be independent and control your own lives
 
Does anyone have experience dealing with abacusrx system?
 
BrickDoor said:
Do I need to have an In-bound IVR from the start of my pharmacy and if I do, how much should I reasonable expect to pay because Ateb Inc quoted $6700 for 4 port line. I am beginning to think that I only need 1 port line and then I can make the other lines rollover to the lines if its busy.

Will someone advise me.
I have decided to go with RX30 for $7700 even though I have not signed the contract.

Thanks
Click to expand...

I think initially you should hold out on the inbound IVR until your script count reaches 30-40/day. A simple answering maching or service will suffice until then. For some reason IVR systems are highly blown-up in price, but necessary when the volume increases.

I think you will like Rx30, simple clean system with everything you need and for a great price. It's not visually stunning, but it gets the job done. Customer service is top notch and they love getting feedback and updating their product.
 
PistonFan531 said:
Can any independent pharmacist do compounding? Or are there any certain policies/procedures/requirements that he/she must obtain before being allowed to do compounding?
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All you need is the time, equipment, know-how, and prescriptions. No special licensing required unless you are compounding sterile parenteral products. Most states require a special sub-license.

With the current climate regarding the compounding of sterile products and the testing requirements, PCAB accredidation is recommended and will make sure you are doing everything by the book.
 
akaykay said:
Great Thread! So much to learn from everyone new & experienced.

I'm also interested in pharmacy ownership, but my situation is different in that I might get the opportunity to buy 50% ownership of the current pharmacy I work for if everything goes well (so basically I'm taking the easy route :oops: )

I would like to know what is a reasonable buyout price (based off of sales/profit margins/building costs/fees, etc and future outlook) . Also, does it sound wrong for the owner to demand a flat royalty (if I'm using the right word) for a certain amount of years after they sell their portion? Sounds messed up to me, but on the other hand this person is very knowledgeable in the business aspect and will always be around for advice, assistance.

Thanks
Click to expand...

Typically, there is a per active script on file base rate to determine the selling price of a pharmacy. Of course there is more to it than this, but it's generally a good starting point.
 
Greatest post in this forum!! I have been thinking about independent pharmacy for a while and reading this post gives me confidence. If pharmacists out there who work in retail chains like me realize how much money you make for them in a week working like a dog, why not work your a** off for yourself and try building something for yourself. I wish all independent owners the very best!
Looking forward to your updates...thanks!
 
Hello everyone, I recently opened a pharmacy and have a few questions I would like to get a help with. I have been referred to a few group homes and one of them wants to have me start a service with them as soon as Monday (01/06/2014) but I needed to know all that is required to make sure that I am competent in delivering this services for them. They have indicated that they want to work with me but if I don't perform well, they could possibly leave for another pharmacy. Please help. My email is [email protected]
 
Update everyone.
I got the group home and just today the owner handed me three more homes making it 4 homes plus another One coming on board in February. And officially I just hit 4 weeks and prescription count is 400. I am so thankful everyone's help so far.
 
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Hpower

How is your store doing?

Warms my heart to see all the independent guys having success.

BrickDoor

Where is your store located? Love the updates.
 
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Sparda29 said:
Subscribed.

I have a friend who is a restaurant owner who does pretty well and wants to open a pharmacy with me as the managing pharmacist (he'd be the investor).
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Sparda,

How common is this scenario? That is, one in which an investor funds an entrepreneurial pharmacist?

thanx
 
BrickDoor said:
Update everyone.
I got the group home and just today the owner handed me three more homes making it 4 homes plus another One coming on board in February. And officially I just hit 4 weeks and prescription count is 400. I am so thankful everyone's help so far.
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Hey Brick,

Where are you located? How have you acquired new contracts?
thanx
 
Hey guys the NCPA ownership workshop is this February in Dallas .
From what I heard , it's a must attend workshop for anyone who wants to own a pharmacy .
I'll be there and I hope to see many of you so we can help each other to get the best of it
 
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BrickDoor said:
Update everyone.
I got the group home and just today the owner handed me three more homes making it 4 homes plus another One coming on board in February. And officially I just hit 4 weeks and prescription count is 400. I am so thankful everyone's help so far.
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Brick,

how do you get contracts with group homes, etc...?
 
Silent Cool said:
Hey Brick,

Where are you located? How have you acquired new contracts?
thanx
Click to expand...

Am in NC.
And today, we acquired two more homes with three more coming on board next month and potentially 4 in march. Today we hit a total of 570 prescriptions. More and more people are calling and requesting for their files to be transferred. The riteaid and CVS's don't really like us anymore but we wont let them be.
 
As far as acquiring these homes are concerned, there are many ways to do it.
1. Look for a QP with a vast connection
2. Look for a primary care physician that services patients in homes.
3. Target clients of large pharmacies like Omnicare, Southern Pharmacy etc. Usually they consider group homes an after thought so less attention to detail are given, hence poor relationship.

Make sure you know the rules of your state and sell yourself very well.
 
BrickDoor said:
Am in NC.
And today, we acquired two more homes with three more coming on board next month and potentially 4 in march. Today we hit a total of 570 prescriptions. More and more people are calling and requesting for their files to be transferred. The riteaid and CVS's don't really like us anymore but we wont let them be.
Click to expand...

Cool. Through what mechanism are you getting these contracts, homes, etc..?
 
I hear that APC or API is very good with prices on generics, does anyone have their info?
 
Last edited:
Silent Cool said:
Cool. Through what mechanism are you getting these contracts, homes, etc..?
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YOu pretty much have to create the contracts but you really have to find out ruined the relationship between the homes and promise to clean it up. Often its simple things like not keeping up with request like medication DC or not responding to request for documents when they get inspected by the state.
 
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