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congrats! best of luck!
Pharmacy Aquisition
Started by MountainPharmD
congrats! best of luck!
Congratulations!
I think independent pharmacy is a great business model as long as you stay up to date on your offerings and provide superior customer service. I drill this into my techs. I have people come in and say that they cant believe what a warm, friendly environment our store is. We know and speak with all of our customers on a first name basis. You think they get that from CVS/Wags? Forget about it! Our best advertisement is our customers recommending us to family and friends.
To whoever said "They told us we made pennies on the script at CVS" Are you kidding me? Why would CVS have 7000 stores if they made "pennies on the script" How would Wags?
I recommend superior customer service and manage the heck out of your inventory. We use a perpetual inventory with RX30.
Independent pharmacy isn't for everybody but I'm glad we're discussing it. Remember that we don't need the chains they need us.
I think independent pharmacy is a great business model as long as you stay up to date on your offerings and provide superior customer service. I drill this into my techs. I have people come in and say that they cant believe what a warm, friendly environment our store is. We know and speak with all of our customers on a first name basis. You think they get that from CVS/Wags? Forget about it! Our best advertisement is our customers recommending us to family and friends.
To whoever said "They told us we made pennies on the script at CVS" Are you kidding me? Why would CVS have 7000 stores if they made "pennies on the script" How would Wags?
I recommend superior customer service and manage the heck out of your inventory. We use a perpetual inventory with RX30.
Independent pharmacy isn't for everybody but I'm glad we're discussing it. Remember that we don't need the chains they need us.
If there could just be a swing of free thinking pharmacist to go out and open independents, things will turn around for retail pharmacy. There is a large uphill battle to be fought with the PBMs and instead of fighting with us the chains have decided it would be better to just own a PBM. Now they control the reimbursement rates in non-preferred pharmacies and can easily crush the little guys and chain competitors.
@southpharmindy: It's nice to see another Rx30 user. It is not a visually stunning pharmacy OS, but it has a lot of robust features. Are you guys utilizing the advanced workflow and all of the available features? That was one of the first things I changed when I came on-board and it has made a world of difference with regard to accuracy and efficiency. Perpetual inventory is a great tool as well to help manage cost.
@southpharmindy: It's nice to see another Rx30 user. It is not a visually stunning pharmacy OS, but it has a lot of robust features. Are you guys utilizing the advanced workflow and all of the available features? That was one of the first things I changed when I came on-board and it has made a world of difference with regard to accuracy and efficiency. Perpetual inventory is a great tool as well to help manage cost.
It's all difference in risk tolerance, strategy, career goals. In general, investment risk and reward are correlated.
Some people just want to have a job, want a monthly paycheck until they retire. Nothing wrong with that, most of the world is like that. At the same time, the world is mostly built by a minority of folks like JP Morgan, Rockefeller, who aspired and succeeded. Most of us are not born with billions, those who wants to achieve something more significant will have to take more calculated risks. Good luck mountain. No guts no glory. Go about it smartly, eh. 😉
P.S post #37 brought out the lolz.
Some people just want to have a job, want a monthly paycheck until they retire. Nothing wrong with that, most of the world is like that. At the same time, the world is mostly built by a minority of folks like JP Morgan, Rockefeller, who aspired and succeeded. Most of us are not born with billions, those who wants to achieve something more significant will have to take more calculated risks. Good luck mountain. No guts no glory. Go about it smartly, eh. 😉
P.S post #37 brought out the lolz.
Trying to be the latter, can't say will get all the way up but it'll never happen if you don't try, right?
Mountain
Any updates on your store?
Kvk
I can't say enough good things about RX30. Its not visually stunning but it does everything you need to do, its cheap, and its Linux based so its fast. People like to use Windows systems because its what theyre familiar with but Windows bogs down and requires a lot of memory. Its also easy to hack.
With Rx30 I can scan hardcopy prescriptions, have the techs scan verify stock bottles, and I have a pharmacist check station that allows me access to the patients profile and the script even on refills.
Also I can have a perpetual inventory.
The only thing Rx30 doesn't let me do that I would like is for the pharmacist to be able to check prescriptions before the insurance is billed similar to Walmarts 4-point check.
Any updates on your store?
Kvk
I can't say enough good things about RX30. Its not visually stunning but it does everything you need to do, its cheap, and its Linux based so its fast. People like to use Windows systems because its what theyre familiar with but Windows bogs down and requires a lot of memory. Its also easy to hack.
With Rx30 I can scan hardcopy prescriptions, have the techs scan verify stock bottles, and I have a pharmacist check station that allows me access to the patients profile and the script even on refills.
Also I can have a perpetual inventory.
The only thing Rx30 doesn't let me do that I would like is for the pharmacist to be able to check prescriptions before the insurance is billed similar to Walmarts 4-point check.
Mountain,
Congrats. I am glad so see an entrepreneur like you fighting the chains. You can do whatever they do. Seriously.
Have you checked out some of the pharmacies for sale here?
http://www.sunbeltnetwork.com/business-for-sale/search/drug-stores_pharmacies
Let me me know what you think.
good luck.
Awesome Mountain. I'm very happy for you 🙂
Mountain,
I am excited that you have taken this route. Independent Pharmacy is a wonderful venture. It has opened the channels for me greatly. It has allowed me to venture out into other businesses, made me lots of money, and yes, i do work quite a bit, but i enjoy it, My fiance has been next to me every step of the way. There are days i ask what am i doing, or today id rather stay home. But independent pharmacy has given me a life i could not have imagined. We are embarking onto compounding pharmacy that many on here despise, and the only reason i can think of why they do is there ignorant personality and their lack of ingenuity...Mountain, take the plunge, and i assure you, you will make much more than what you state. if you go in it yourself, you will work, but you will benefit. Everything you wrote is true...the numbers look right give or take a few thousand. At 100 rx's and a few compounds you will do spectacular! Times are changing and it's time you acted upon your dream. I have never looked back. I have never regretted. I dont have an MBA or any business degree. All i have is drive and determination and a love for wealth. Good luck to you and keep me updated!
Dr. M
I am excited that you have taken this route. Independent Pharmacy is a wonderful venture. It has opened the channels for me greatly. It has allowed me to venture out into other businesses, made me lots of money, and yes, i do work quite a bit, but i enjoy it, My fiance has been next to me every step of the way. There are days i ask what am i doing, or today id rather stay home. But independent pharmacy has given me a life i could not have imagined. We are embarking onto compounding pharmacy that many on here despise, and the only reason i can think of why they do is there ignorant personality and their lack of ingenuity...Mountain, take the plunge, and i assure you, you will make much more than what you state. if you go in it yourself, you will work, but you will benefit. Everything you wrote is true...the numbers look right give or take a few thousand. At 100 rx's and a few compounds you will do spectacular! Times are changing and it's time you acted upon your dream. I have never looked back. I have never regretted. I dont have an MBA or any business degree. All i have is drive and determination and a love for wealth. Good luck to you and keep me updated!
Dr. M
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Yes, checked out a couple on this site. The one in Colorado intrigues me.
There is a hidden market out there. Contact an RxOwnership advisor with McKesson's Health Mart.
Thank you sir! Things have gone fairly smoothly except for my partner trying to screw me. I was partnering with another pharmacist who got greedy and tried to go behind my back and get the sellers to sign an alternate purchse agreement cutting me out. Only problem is we had a fully executed purchase contract with both of us as buyers. Had to get the lawyers involved. After pointing out he was guilty of attempted breach of contract, misrepresentation, attempted false inducement, and fraud he wisely decided to tuck tail and run away as fast as he could. In exchange for his complete and total divesture from the transaction I agreed to sign a hold harmelss agreement.
That little drame is nearing an end and I'm on track to close on Friday, March 14th. I went the SBA route for financing. All in all its been pretty smooth.
Mountain
Have you gotten far enough along to decide which computer system you're going to use? Any robotics? Innovation Smart Cabinet looks pretty interesting to me http://innovat.com/smartcab.html
Are you going to try to join PCCA?
Have you gotten far enough along to decide which computer system you're going to use? Any robotics? Innovation Smart Cabinet looks pretty interesting to me http://innovat.com/smartcab.html
Are you going to try to join PCCA?
I'm going to be a Health Mart Pharmacy through McKesson. I'm still in the negotiation process on my acquisition cost, rebates and terms. The pharmacies I'm buying are Good Neighbor through Amerisource so I have some negotiating leverage.
I've decided to go with the Pharmaserv computer system though McKesson. It's simple to use, has great tools for monitoring profitability and I like how everything is integrated from POS to final verification. I'm also going with the Kirby Lester KL1 Plus. It's fully integrated with Pharmaserv. I like the piece of mine label and stock bottle verification brings as well as the efficiencies of an automated counter.
Compounding is something I'm not going to touch right now. The laws are still unsettled and I don't want to take a risk on something that may be on the way out.
I've got some long term care possibilities I will work hard to get. I've also got a 340B contract with a nearby small community hospital. I don't know much about 340B so I need to bust my butt and figure out how to maximize profit though it.
Mountain,
There are a few excellent pharmacies for sale in CA. What is your opinion on those? Also, are you from Colorado, or currently working there?
I can't imagine why more Pharmacists don't seek entrepreneurial opportunities. Your income will probably double from working at WAGS. Granted, you need to find the right place or you will go out of business in no time, but buying an established, successful pharmacy seems like a no-brainer to me--especially with some of the cash flows I am seeing.
I wish I can find a good one in Ohio . 🙁
Yep...atwo into one deal.
Nice. Control the market by offering lower fees than CVS, WAGS, etc...., in more than one location.
Nope...two into one location with no competition for 15 miles and no corporate competiton for over 30 miles.
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Cool. So did you say this is a franchise you are doing? Also, what state are you in?
Hey Mountain any updates, how are things going for you?
Congrats MountainPharmD for wanting to reach higher and go for it.
From my experience as both a PIC and independent pharmacy pharmacist, I'd say there are pro's and cons to independent ownership. It all depends on your personality, hard work, and interest. If you're the type of person that is comfortable in not having responsibility and following orders, then by all means please stick to chain retail. That's not to say it's bad, because obviously the majority of students are pursuing it, but do what suits you. I think those who are bashing chain retail are probably the ones who were stuck in a bad store or bad crew because not all chain stores are bad. Just know that in chain there are consequences like a stagnant job market. Pay may stay static and your job is not guaranteed with the surplus of graduates. It's a quick & easy way to pay off loans. Now if you like to be in charge, like challenges & learning new things that also come along with risks then independent is an option for you. BUT it's hard work owning a pharmacy. You have to spend 1/4-1/2 of your time with business issues like costs, repairs, negotiations, etc. You're regularly checking your P&L, diligently watching your acquisitions costs & reimbursements and having to keep up to date on board rules & updates. Businesses are always going to bother you with their services & offers. You have to have great techs. Let me repeat: you have to have great techs that can help you in managing your costs and having those type of people means you have to fork up some extra cash or benefit them in some way otherwise what's not to stop them from going to Kaiser to make $20+/hr. Some poster here mentioned paying a lead tech no more than $15/hr. Trust me, that's not going to cut it if you live in the city........maybe in a rural area yes. And if your option is starting a indy pharmacy from scratch, know that it's going to be 2x as hard unless you have a business partner that's going to work as hard as you.
MountainPharmD numbers are not off. I know a pharmacy that does 350 scripts/day and the owner nets 2x as much as a retail pharmacist. If you plan on having front end items that's an additional little profit. But as I've said before independent pharmacy is hard work and you have to be aggressive & persistent in what you want to succeed in that business. And you have to be creative in how to make your business stay alive or grow. Don't just do it for the money, do it because you want to be your own boss!
From my experience as both a PIC and independent pharmacy pharmacist, I'd say there are pro's and cons to independent ownership. It all depends on your personality, hard work, and interest. If you're the type of person that is comfortable in not having responsibility and following orders, then by all means please stick to chain retail. That's not to say it's bad, because obviously the majority of students are pursuing it, but do what suits you. I think those who are bashing chain retail are probably the ones who were stuck in a bad store or bad crew because not all chain stores are bad. Just know that in chain there are consequences like a stagnant job market. Pay may stay static and your job is not guaranteed with the surplus of graduates. It's a quick & easy way to pay off loans. Now if you like to be in charge, like challenges & learning new things that also come along with risks then independent is an option for you. BUT it's hard work owning a pharmacy. You have to spend 1/4-1/2 of your time with business issues like costs, repairs, negotiations, etc. You're regularly checking your P&L, diligently watching your acquisitions costs & reimbursements and having to keep up to date on board rules & updates. Businesses are always going to bother you with their services & offers. You have to have great techs. Let me repeat: you have to have great techs that can help you in managing your costs and having those type of people means you have to fork up some extra cash or benefit them in some way otherwise what's not to stop them from going to Kaiser to make $20+/hr. Some poster here mentioned paying a lead tech no more than $15/hr. Trust me, that's not going to cut it if you live in the city........maybe in a rural area yes. And if your option is starting a indy pharmacy from scratch, know that it's going to be 2x as hard unless you have a business partner that's going to work as hard as you.
MountainPharmD numbers are not off. I know a pharmacy that does 350 scripts/day and the owner nets 2x as much as a retail pharmacist. If you plan on having front end items that's an additional little profit. But as I've said before independent pharmacy is hard work and you have to be aggressive & persistent in what you want to succeed in that business. And you have to be creative in how to make your business stay alive or grow. Don't just do it for the money, do it because you want to be your own boss!
The independent that I work for on a PRN basis has an awesome lead tech. I believe he pays her around 75k/year. She's essentially the backbone of the business, runs it, all the customers know her, etc. The rest of the help are high school kids/college kids who get paid minimum wage or slightly above.
Everything went through on March 14th! I am now an independent pharmacy owner!
How is it going?
Congratulations! Keep us all updated. I want to know the good, the bad, and the ugly before I take the plunge myself.
Well...there have been some challenges! Overall it's going great. Nothing I would rather be doing than this. It's awesome running your own shop. I have a completely different attitude than when I worked for the soul sucking corporate chains.
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