opening a new pharmacy

[rmflawk]

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I am planning to open an independent pharmacy but I do not have any idea where to start 😡
I think I have to hire a good lawyer before I even think of doing anything, don't I?
If so, here is the problem, I do not know where to look to find a list of good lawyer. 😱 HELP!!!
Many people said I have to ask other independent pharmacy owners but how??? Just walk into one of their store and start asking?? I think it will be very rude and they may consider me as a furure competitor.
Can sombody tell me where I can get all the necessary info without offending anybody?
If somebody can tell me what I have to do step by step it will be greatly appreciated.😍
1. Do I have to hire a lawyer first before I do anything? If so, when is the best time and how much is the resonable fee and where I can find a list of good lawyers (any web site I can look into?)
2. Is there a minimum lot requirement for a pharmacy? (like minimum required squarage)
3. I contacted SCORE, but they do not have any person experienced with pharmacy related matter.. Is there any other resources I can contact?
4. How many different buying group are there? I see only EPIC around my area. Is it a good one? (I live in MD)
5 Where can I find all the necessary info. for all the requirements? (any web site?) etc

If anybody can think of anything else please give the answer for that too. PLEASE 😀

 

[fattunesy]

One thing most people don't keep in mind when considering opening a store: the length of time reimbursement is taking these days from state Medicaid. I work in Illinois, which is probably the worst, but it is an issue everywhere. Last year on this date we had ~350k cash on hand, which is around 5 months operating expenses for us. This year we are down to ~68 k with a total flip in our Accounts Receivable. This is all due to Medicaid pushing back the time to payment to 180 days. What this means in practice is that you need to have a LOT of cash on hand or significant credit to run the store before receiving good returns. As to the other questions: check your state practice act for some of them. GPOs are generally ok, make sure your preferred wholesaler will work with them Without knowing your prescription patter (an 80/20), it will be difficult to get an idea of which GPO is best for you. This http://www.nipcweb.com/ might be a good place to look for info as well.

Good luck. Unless you have a specific niche it is really hard to make it as an independent.

 

[Doctor M]

One thing most people don't keep in mind when considering opening a store: the length of time reimbursement is taking these days from state Medicaid. I work in Illinois, which is probably the worst, but it is an issue everywhere. Last year on this date we had ~350k cash on hand, which is around 5 months operating expenses for us. This year we are down to ~68 k with a total flip in our Accounts Receivable. This is all due to Medicaid pushing back the time to payment to 180 days. What this means in practice is that you need to have a LOT of cash on hand or significant credit to run the store before receiving good returns. As to the other questions: check your state practice act for some of them. GPOs are generally ok, make sure your preferred wholesaler will work with them Without knowing your prescription patter (an 80/20), it will be difficult to get an idea of which GPO is best for you. This http://www.nipcweb.com/ might be a good place to look for info as well.

Good luck. Unless you have a specific niche it is really hard to make it as an independent.

That is absolutely ridiculous. 180 days to get paid. I wouldnt even take medicaid anymore. Florida it is 2 weeks. but everything is MAC. dispensing fee is $3.73. Honestly, retail is lotsssssssssssssssssssssss of work, for little return. You should have a niche such as Long Term Care, infusion pharmacy or compounding! Good luck with the climb!

 

[rmflawk]

Thank you for the some inputs.
I still did not get answers for the more urgent matters like
1.Is there a minimum requirement of lot? (I cannnot find any info from web site)
2.at what point of the process I sign a lease (do I need a lease before I file anything?)-I do not want to pay a rent for nothing
3. at what point of the process I have to hire a lawyer and where I can find list of good🙂D) lawyers t the beginning? or after I sign a lease)-pharmacy board dose not have any info on it
4. what is a good pharmacy system to use (is there a system that supports multiple language?)
5. where can I find independent pharmacy owners who can give me info (I do not want to walk in one of the pharmacy and start asking questions 😕)

If anybody can help me with any info on opening a pharmacy it will be greately appreciated. GOOD LUCK for all out there.😍

 

[jblil]

I am not a Pharmacist but I have a MBA (and a few other degrees - check my profile) and have done a fair amount of consulting for small and medium businesses. In answer to your questions:

1. Lot: I doubt there is a minimum legal requirement (check with your city Dept of Inspections). However, I think there would be practical requirements: how much stock do you want to keep, how many articles/medications do you plan to offer, how "airy" do you want your pharmacy to be (this would dictate the size of your building), how much parking space do you think you need?
2. I wouldn't sign a lease until I have a business plan and lined up a loan - unless you can self-finance. The reason is as soon as you sign the lease, you're going to have to write a check.
3. Lawyer: you can hire one now, but that's going to be expensive because they bill by the hour. If I were you, I'd think hard about all the questions I have, then organize them, then try to find out the answers myself (make sure you check the official sources, and not something you find on the net). Only then would I find a lawyer to talk about the stuff I haven't been able to find myself. As for finding a lawyer, word-of-mouth referral works best. You can also check the Martindale directory (google it).
4 and 5. I can't help you there as it's not my field.

Make sure you get a good accountant or tax lawyer on board too. Get educated on the financial aspects of running a business, because that's a common downfall for business owners. Nolo Publishing offers lots of excellent guides.

Good luck with your endeavor!

 

[rmflawk]

thank you for your input

 

[wickedone]

contact me if u like cmxgen @ yahoo, u know the rest. I have owned it for a couple years and have enjoyed. As 1 poster pointed out Illinois is really bad. Other states are very good....let me know

 

[DedicationNSU11]

That is absolutely ridiculous. 180 days to get paid. I wouldnt even take medicaid anymore. Florida it is 2 weeks. but everything is MAC. dispensing fee is $3.73. Honestly, retail is lotsssssssssssssssssssssss of work, for little return. You should have a niche such as Long Term Care, infusion pharmacy or compounding! Good luck with the climb!

You feel like you get little return? I thought you were ballin' man (at least making significantly more than regular retail like CVS), you're my inspiration to open up my own pharmacy 🙁

 

[wickedone]

U can take home north of 200K.

I know guys taking home north of 500K. Its much better than working for WAG/CVS.

However its not easy, for the first year you will spend much of your time marketing and getting your patients.

 

[tootoo30]

Check out this website for the National Community Pharmacist Association
http://www.ncpanet.org/

They came and talked to us at school. They actually can set you up with independent pharmacists who are retiring and selling their business. They also help you with all the info you need to open your own pharmacy.

Start by clicking on the "Ownership" tab....

HTH

 

[kvl1027]

As someone else already posted hit up the NCPA, you can find a lot of valuable information with them. Also, I dont think there is anything wrong with walking in and asking advice, although I wouldn't ask the guy across the street from your storefront.

You are going to need a lot of cash on hand to keep things rolling. Don't expect to pay yourself for at least 3 years. There are a bunch of buying groups out there, they can really help if they have good rebates, but you have to be able to send the money out first and wait months for your rebates.

You should really consider working for an independent for a while. There are a lot of old dogs out there looking for buyers and it may be your best option for getting a store. So much easier to take over a store with established cash flow and you can learn something while you work there.

 

[Doctor M]

You feel like you get little return? I thought you were ballin' man (at least making significantly more than regular retail like CVS), you're my inspiration to open up my own pharmacy 🙁

Ohhhh, we are ballin...but a tough business. Everyday we live as though it will be our last day 🙂 You def live your life a little nervous. Income is here today, could be gone tomorrow. But we are well diversified. Have A retail side, an LTC side and soon a compounding side. Bit still a tough business.

 

[DedicationNSU11]

Ohhhh, we are ballin...but a tough business. Everyday we live as though it will be our last day 🙂 You def live your life a little nervous. Income is here today, could be gone tomorrow. But we are well diversified. Have A retail side, an LTC side and soon a compounding side. Bit still a tough business.

👍👍👍

 

[StevePerry]

Ohhhh, we are ballin...but a tough business. Everyday we live as though it will be our last day 🙂 You def live your life a little nervous. Income is here today, could be gone tomorrow. But we are well diversified. Have A retail side, an LTC side and soon a compounding side. Bit still a tough business.

I agree 100% -- I think a lot of us get a vicarious thrill out of hearing your success so far going against "the man" (one of the truly positive/inspiring postings on here when someone says '**** you' to the system and dominates...). It definitely takes some cajones grandes like you mention and a strong strong business sense (sounds like you have a good partner too). That said with the nature of it I don't think a first generation start-up is for most people on here... you know anyone even remotely faint of heart...

 

[Doctor M]

I agree 100% -- I think a lot of us get a vicarious thrill out of hearing your success so far going against "the man" (one of the truly positive/inspiring postings on here when someone says '**** you' to the system and dominates...). It definitely takes some cajones grandes like you mention and a strong strong business sense (sounds like you have a good partner too). That said with the nature of it I don't think a first generation start-up is for most people on here... you know anyone even remotely faint of heart...

Indeed I do. We make a great team. Diversification is key.

 

[DedicationNSU11]

Indeed I do. We make a great team. Diversification is key.

Do you think you could have done it without a partner? It could have meant 100% goes to you, but what are your overall thoughts on going with or without a partner?

 

[abc1234567]

I also sometimes think that it is absolutely necessary for us to think on the lines of starting our own pharmacy as I feel our profession is hijacked by corporations and we need to get the profession back from them .
Doctor M your posts are very helpful, for other details and questions would you be able to respond to emails?
rmflawk there are specifications and requirements you need to meet before your pharmacy can get approved depending on your state law.
Atleast my state has size and other specs requirement before they can approve a pharmacy.

 

[Doctor M]

I also sometimes think that it is absolutely necessary for us to think on the lines of starting our own pharmacy as I feel our profession is hijacked by corporations and we need to get the profession back from them .
Doctor M your posts are very helpful, for other details and questions would you be able to respond to emails?
rmflawk there are specifications and requirements you need to meet before your pharmacy can get approved depending on your state law.
Atleast my state has size and other specs requirement before they can approve a pharmacy.

I do my best in responding. Lately have had lots going on!