The Financial Impact of Medication Adherence in the Pharmacy
Be Inquisitive, Be Knowledgeable; Be Receptive to Change.
The first law of healthcare business and medication adherence is “Care > Commerce.” It’s a scenario that can best be described as a win/win/win/win.
The patient wins because adhering to their medication improves their overall health outcomes.
The pharmacist wins because of the personal satisfaction it brings to improving their patient’s care.
The healthcare system wins because healthy patients do not go to the doctor’s office nor do they require treatment in the hospital.
The pharmacy wins … increased adherence directly improves pharmacy financial results.
The great thing about increasing adherence is you can increase your profitability without acquiring new patients. You only need to ensure your existing patients are taking their medication as prescribed.
What is the impact of medication adherence to pharmacy financial results?
The Nature of the Adherence model
Increasing adherence is not a get rich quick scheme. It will take about 3 – 5 years to move from the current national average of 50% to a sustainable average of 75% – 80% Our pharmacy is in 80% to 85% range … We know it can be done!
The model we use increases adherence gradually over 5 years. Some pharmacies will see growth faster than others depending on how aggressively they commit to increasing adherence. Of course, the total dollar value of your adherence improvement will depend on your current number of patients and prescriptions you currently fill.
The only variable that changes in the model below is your pharmacy’s improvement in medication adherence. The happy reality is as adherence improves; front store revenues increase with it as patients visit the pharmacy more often to fill their prescriptions. Clinical service revenues such as med reviews and follow ups typically increase too. And your relationship as a trusted health advisor to your patient deepens … this is priceless.
The results for an average typical pharmacy:
The important thing to understand is the increase in net income goes on in perpetuity as long as you maintain the new level of adherence. What you do with the increased profitability is up to you. Perhaps you will invest in the pharmacy with new people; process and technology so you can spend more quality time with your family. And imagine how the increased profitability boosts the valuation of your pharmacy to strengthen your borrowing power for expansion or as you ponder retirement.
It’s a win/win/win/win !!!!
COMMENTS?
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