The steps towards pharmacy ownership

My brief but eventful experiences on my journey from 22-year-old pharmacist to pharmacy owner, start-up entrepreneur and lawyer have provided me a breadth of experience and unique perspectives with regards to the business of pharmacy. I’m pleased to share what I’ve learned through this new column to help pharmacists who are considering the move to ownership. My hope is that through the sharing of ideas and discussion, together, we can explore what the future of pharmacy looks like and how we can all play our part in the evolution of pharmacy. Having been involved with merger/acquisitions and building many pharmacies, I’ve become quite familiar with many facets of pharmacy ownership. I am often asked if independent pharmacy ownership is worth pursuing. Read: 5 Tips: Providing care to newcomers From a macro perspective, many trends are not favourable for independent pharmacy ownership. Margins are decreasing and reimbursement through rebates and cognitive services are not rising to offset our increasing costs of operation. Going forward, pharmacies are having to work harder for every prescription dollar. Further, the pharmacy industry is ripe for disruption as tech companies and corporate chains integrate automation, central fill, economies of scale and logistics into their business models. Independent pharmacies simply do not have the capital nor resources to compete in this manner. So, is this the end of independent pharmacy? No. It means that independent pharmacy is evolving. But to thrive, independent pharmacies must focus on their strengths, minimize their weaknesses and offer value. What are some key value-propositions that independent pharmacies offer? 1. Personalized service Patients value a long-term relationship with their neighbourhood pharmacist as it creates a longitudinal patient-pharmacist partnership that promotes safety and encourages a deeper therapeutic partnership. Not all patients are comfortable with high-volume pharmacy businesses. Patients with unique medical conditions and complex medication regimens do better in environments where they can receive personalized care. Offering clinical services is a great way to generate revenue with minimal investment (other than time) and is often overlooked as an effective strategy for client retention. If budget and time permits, spend more of your time working on the business developing these services, not inside the business. 2. Specialized pharmacy services Identifying unmet healthcare needs in your community is a sure-fire way to help your patients and create a loyal following and referral network. Independent pharmacies can be much more responsive and can tailor their services to meet these unmet needs. Focus on what your pharmacy does well and find a niche. It is difficult for an independent pharmacy to offer the breadth of services and products that a corporate pharmacy can; you will most likely not be the pharmacy for everyone. Find your niche. If you are thinking about pharmacy ownership, I strongly suggest you spend time thinking about the points raised above. Next time we’ll look at some of the critical decisions any pharmacist must make before deciding to open an independent pharmacy, including your business model and location. We’ll also do an all-important reality check to help you confirm whether, in fact, ownership is for you. Financial gain should not be your sole reason for becoming a pharmacy owner. Ownership is hard work. There are likely far superior financial returns to be had in other business ventures. If, however, you desire to practise pharmacy on your terms, be a pillar of your community and potentially generate passive income, there are few businesses as rewarding and stable as pharmacy. Bing Wang is currently legal counsel at Pocketpills Pharmacy. He is a pharmacy owner whose online pharmacy was recently acquired by a public company. Bing also helps healthcare professonals navigate their legal matters through his law firm Meta Law (metalaw.ca). Connect with Bing on LinkedIn at linkedin.com/in/bingwang8.

The steps towards pharmacy ownership

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Bing Wang

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