Pharmacy Ownership Workshop? Anyone attended?

[rxlawreview]

I would be paying for this later this week. It seems very informative and they have lots of guidance for help. Anyone ever been to it? Did it push your further in acquiring and running your own pharmacy successfully?

I have a family friend in NY who is not even a pharmacist (finance background) and he owns 3 pharmacies in Queens NY and he is doing pretty well ( i mean well.. amazed at the HUGE profit potential).. ... at least 4x my salary

I was really amazed at the opportunity for financial security and been able to pay off my student loans..


Please comment if you have constructive things to say.....

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[BenJammin]

I did and loved it.

 

[MountainPharmD]

I would be paying for this later this week. It seems very informative and they have lots of guidance for help. Anyone ever been to it? Did it push your further in acquiring and running your own pharmacy successfully?

I have a family friend in NY who is not even a pharmacist (finance background) and he owns 3 pharmacies in Queens NY and he is doing pretty well ( i mean well.. amazed at the HUGE profit potential).. ... at least 4x my salary

I was really amazed at the opportunity for financial security and been able to pay off my student loans..


Please comment if you have constructive things to say.....

I went to one in Dallas 3 years ago. Absolutely worth the money. I was a month away from closing on my acquisition. I still got a lot out of the conference. I would highly recommend it if you want to get into ownership.

 

[MountainPharmD]

In my opinion the sweet spot for independent pharmacy is to own 3 to 5 pharmacies. I love being behind the counter and being a pharmacist but the real money is in ownership of several stores. I'm doing quite well as a single independent owner however I'm tied to the pharmacy everyday its open. To achieve full financial and personal independence I'm going to get out from behind the counter and manage multiple stores.

A big problem we have is the lack of business or finance training in pharmacy school. We do not come out of pharmacy school prepared to run a business. That's why you see business and finance guys owning pharmacies. Being a good pharmacist has no correlation to being a good businessman.

 

[StallionRx]

This is one of those things I never understand on this forum.

Some saying independents are hanging on by their last breath. Others saying you need a niche to survive or reimbursement rates are killing them. Others saying their making 3-4x a regular staff RPH salary? Is this take home salary or revenue?

...the world may never know.

 

[MountainPharmD]

This is one of those things I never understand on this forum.

Some saying independents are hanging on by their last breath. Others saying you need a niche to survive or reimbursement rates are killing them. Others saying their making 3-4x a regular staff RPH salary? Is this take home salary or revenue?

...the world may never know.

It depends on your location. I'm located in rural Texas. I own the only pharmacy in a town of 2,500 people. The next closest pharmacy is an independant 12 miles away. The closest chain pharmacy is 22 miles away.

 

[southpharmindy]

I think you'd do better to give MountainPharmD a phone call. Pretty sharp guy. BF7 is pretty in touch as well.

 

[rxlawreview]

Any one going to the pharmacy ownership workshop next month in Tennessee , PM let us network.

 

[quickpic007]

I did and loved it.

Any plans to open? I am thinking leaving chain retail to do so

It depends on your location. I'm located in rural Texas. I own the only pharmacy in a town of 2,500 people. The next closest pharmacy is an independant 12 miles away. The closest chain pharmacy is 22 miles away.

What would you say is the best mix of insurance/PBM reimbursement? In my trade area everything skews Medicaid/Medicare as there is very little employment available...

Any one going to the pharmacy ownership workshop next month in Tennessee , PM let us network.

Prob going to one in a year or so...let us know how it goes!

 

[rxlawreview]

Any plans to open? I am thinking leaving chain retail to do so



What would you say is the best mix of insurance/PBM reimbursement? In my trade area everything skews Medicaid/Medicare as there is very little employment available...



Prob going to one in a year or so...let us know how it goes!

Will do!

As an aside, Any practicing pharmacists out there that are pharmacy owners in the DC, MD, VA area? I would love to network and connect with you about the ownership process and what it entails? I am a practicing supermarket retail pharmacist interested in owning my own pharmacy. I am licensed in 5 states all in good standing. Let connect and network. PM if you have information to provide. We can go for lunch/dinner. Thanks. I would be attending pharmacy ownership network to connect.

 

[MountainPharmD]

Any plans to open? I am thinking leaving chain retail to do so



What would you say is the best mix of insurance/PBM reimbursement? In my trade area everything skews Medicaid/Medicare as there is very little employment available...



Prob going to one in a year or so...let us know how it goes!

Right now Medicaid/Medicare is bad and getting worse. My store is 75% Medicaid/Medicare. That much dependant on government funded insurance is not good. There is some hope on the horizon if NADAC reimbursement becomes the standard.

I would look very carefully at the payor mix as well as who the payor is.

 

[quickpic007]

Right now Medicaid/Medicare is bad and getting worse. My store is 75% Medicaid/Medicare. That much dependant on government funded insurance is not good. There is some hope on the horizon if NADAC reimbursement becomes the standard.

I would look very carefully at the payor mix as well as who the payor is.

Do you get frequent offers on your pharmacy from chain/individuals? In a rural area is there demand to sale the pharmacy if needed? My area is at minimum 75 % Caid/Care, but I think this beats Cigna,Aetna, and Caremark employer plans? not much bcbs here
Thanks!

 

[MountainPharmD]

I'm in a rural area. No offers to buy. I don't think there are very many people looking to buy pharmacies right now. Tomorrow, 3-15 is my 3 year anniversary of ownership. Still making it!

 

[BenJammin]

I'm in a rural area. No offers to buy. I don't think there are very many people looking to buy pharmacies right now. Tomorrow, 3-15 is my 3 year anniversary of ownership. Still making it!

I'm looking.

 

[quickpic007]

I'm in a rural area. No offers to buy. I don't think there are very many people looking to buy pharmacies right now. Tomorrow, 3-15 is my 3 year anniversary of ownership. Still making it!

Congrats!!!

 

[MountainPharmD]

I'm looking.

Where are you located? I have a really awesome opportunity to open a second store. At three years of ownership I'm not quite at the point where I feel comfortable leaving my current store in someone else hands.

 

[rxguy4life]

Any practicing pharmacist out there looking on becoming a pharmacy owner-- looking for transitioning from being a worker to being a BOSS. Let us connect and link up? I am interested in running my own pharmacy once I get all the needed knowledge instead of being a 12 hour shift guy for life. Anyone out there with a similar mindset in pursuing the entrepreneurial route

 

[rockpharm]

I know this is an old thread and the op probably doesn't care anymore, but I'll add my two cents for future readers. Yes I attended a pharmacy owner workshop (flight, lodging and registration fees free from a scholarship). It was very useful. Make sure to record the audio (don't ask though as it's probably copyrighted). I wouldn't feel bad about recording it as long as you don't give it to people for free or sell it obviously. Also save any resources they give you. They will teach more information than you could possibly remember. They will also paint independent pharmacy very positively. The organization that did the workshop was very biased in that they definitely want more pharmacists to carry the independent torch into the future.

In my opinion, independent pharmacy has an uncertain future. I have access to the NCPA yearly Financial Digest (only pharmacy owners typically get this after filling out their yearly survey). From it I can tell you that the median pharmacy owner makes about the same (total of both salary and retained earnings) as a chain pharmacy manager. Considering it costs hundreds of thousands of dollars or more to open/buy a store it wouldn't be worth it in a monetary sense. However, if you are in the top 75% of independent pharmacies you really can make substantially more than that. The pharmacy profession is obviously changing. Whether that will mean we will be providing service based care in the future or if we'll go extinct who knows for sure. Pharmacy reimbursement has also been decreasing as of late. Owning a pharmacy clearly has a much higher risk/reward ratio than working at a chain. All I would say is make sure you are very good at what you do and work incredibly hard to never stop learning about the business aspect of pharmacy. You will have to be an innovator to survive in this market.

 

[rockpharm]

While I agree with you that you always have to be on your toes to be successful in today's pharmacy's world, I will say that it isn't real, real expensive to open your own store if you're in the right location. One could probably open their own pharmacy with an investment of about $80,000 to $90,000--not chump change but not millions either.

 

[rockpharm]

There's absolutely no way 80k is enough to open a pharmacy. That's probably not even enough to cover inventory until the first reimbursements start to come in let alone other equipment/computer systems, building renovation, lease, marketing, wages, etc. I'm guessing you mean that 80k would be the down payment on a business loan of around 300k. In which case your total investment would be 380k. You'd have to pay back the loan with interest over time of course. So yes you could open a pharmacy for 80k as long as you're willing to make 50k a year for the next few years and not make a pharmacists salary again for another 10 years. Whether or not you pay back your loan and make money above a pharmacists salary depends on how good you are. Like i said, the average owner makes about a chain pharmacy manager's salary. If you're in the top 25% of pharmacies you can make substantially more than that.

I would encourage people who have a passion to own their own pharmacy to do so. However, you should go into it with the understanding that it's a huge investment that will not pay off for many years, you will be working much harder initially than a chain pharmacist (imagine working 50 hours as a pharmacist and then having to run the business at the end of the day), and it's risky in that you will either make millions or go bankrupt based on your individual abilities and how the market evolves in the coming years. It really is quite rare for an independent pharmacy to go bankrupt though. Typically what a failed independent looks like is an owner making less than a pharmacist's salary to run his store until he decides to sell his scripts to Walgreens and liquidate the pharmacy to pay back the loan. If you want to open an independent start learning now and never stop learning. Some day you will likely look back and realize it was worth it to dedicate your career to building a real business in your community and be financially rewarded accordingly.

I guess what I was getting at is that it doesn't cost that much to JUST OPEN a small apothecary, style pharmacy. I took out $120,000 in loans/investments and still had about $40,000 in my business account when I opened. As far as making money, that is the challenging thing. I opened my pharmacy a little over 2 years ago--it took about a year to break even. By that I mean paying all the bills without having the ability to pay myself a salary. Fortunately, my wife has a good job, so we were able to make it work. I elected not to take out a huge loan because I did not have to pay a pharmacist's salary. I'm the only employee so I do everything: pharmacist, cashier, technician, delivery man, basic accounting, reconciling of third party claims, etc. I don't take a salary out, but I could take a small one out if my wife and I needed it. My biggest regret was SPENDING TOO MUCH on inventory. You don't need anywhere near $80,000 to start off--I had about $25,000 on my shelves including OTC and that was too much, trust me. As you know lots of things can be ordered for next day and many times patients are willing to wait that first time. Obviously everyone's situation is different and my plan may not work for everyone, but for us, we're doing fine. Not only that, I find it to be the most rewarding thing I've ever done and don't regret the decision a bit.

 

[imcallingcorp]

I guess what I was getting at is that it doesn't cost that much to JUST OPEN a small apothecary, style pharmacy. I took out $120,000 in loans/investments and still had about $40,000 in my business account when I opened. As far as making money, that is the challenging thing. I opened my pharmacy a little over 2 years ago--it took about a year to break even. By that I mean paying all the bills without having the ability to pay myself a salary. Fortunately, my wife has a good job, so we were able to make it work. I elected not to take out a huge loan because I did not have to pay a pharmacist's salary. I'm the only employee so I do everything: pharmacist, cashier, technician, delivery man, basic accounting, reconciling of third party claims, etc. I don't take a salary out, but I could take a small one out if my wife and I needed it. My biggest regret was SPENDING TOO MUCH on inventory. You don't need anywhere near $80,000 to start off--I had about $25,000 on my shelves including OTC and that was too much, trust me. As you know lots of things can be ordered for next day and many times patients are willing to wait that first time. Obviously everyone's situation is different and my plan may not work for everyone, but for us, we're doing fine. Not only that, I find it to be the most rewarding thing I've ever done and don't regret the decision a bit.

First of all I applaud you for trying. A scary and exciting path it is. But my question to you is do you really feel it is worth it? You are NOT!!! even a break even pharmacy since you can’t pay yourself a full salary sorry that’s the only way to look at it. Plus all the other aspects such as what if you take a vacation , if you’re only employee you can’t just get a covering pharmacist since you don’t have a tech who can run the show? Not tryin to be an a@@hole just curious since I tried also and sold myself because it just wasn’t worth all the headaches and financial worries. Are you workin on getting accounts like LTC or assisted living facilities? Cuz if you’re just waiting for growth from people walkin in the door not worth it

 

[deleted462159]

This is one of those things I never understand on this forum.

Some saying independents are hanging on by their last breath. Others saying you need a niche to survive or reimbursement rates are killing them. Others saying their making 3-4x a regular staff RPH salary? Is this take home salary or revenue?

...the world may never know.

They're not on their last breath. I wouldn't call it a resurgence either, but there are (slightly) more independents now than a few years ago. But overall, the number of independent pharmacies have held surprisingly constant in the last 20 years, despite increased competition and lower reimbursements.

In my view, pharmacy ownership is more about autonomy and lifestyle than it is about money. Having said that, like any small business owner, you take on financial risks and responsibilities that a staff pharmacist does not. If you do it well, you will be rewarded for it ($$). You would likely work much longer hours too, so take that into account as well. It's definitely not revenue. Average pharmacy revenue for an independent is ~$3.5-4m. The 3-4x you mention is owner's discretionary income. I've seen it more in the range of 2-3x, depending on the pharmacy. Remember, it's not all profit. You need to pay yourself a salary you'd otherwise make elsewhere. (By buying or starting a pharmacy, you're not just looking to buy yourself a job, after all.)

So again, it's about lifestyle, not income per se.

 

[CetiAlphaFive]

As you know lots of things can be ordered for next day and many times patients are willing to wait that first time.

Bold for emphasis.

You only get one first impression

 

[imcallingcorp]

I did have someone make a great point the other day though. Wholesalers allow you to return unopened meds for a full refund (I'm 90% sure about the full refund part) within a certain amount of time. You can order to be prepared for most scripts and then return the slow movers later. There's obviously risk involved though and you really have to understand the terms of the returns. And it obviously ties up cash that could be used elsewhere.

doesn’t help much in terms of money issues. they take a lot longer to issue the refunds vs how quick you pay your invoices. gotta remember just how expensive meds are today.

 

[eeyore spice]

While I agree with you that you always have to be on your toes to be successful in today's pharmacy's world, I will say that it isn't real, real expensive to open your own store if you're in the right location. One could probably open their own pharmacy with an investment of about $80,000 to $90,000--not chump change but not millions either.

If your "right location" is in a rapidly gentrifying area, how different will that initial investment be? I.e., where does leasing space fall in terms of largest to smallest costs?