Jun
05
2012

You Are Dead Already, So Relax

I honestly can say that I do not know what is going on in our industry.  I have a good idea, however.  What I smell is:

Panic Gloom Doom

Everything that the big drug store companies are doing lately indicate that they have run the course in the competitive paradigm that was designed in the 1970s and it is no longer working.  It has not worked for at least a decade.

They keep doing the same thing.  They throw money at the problem.  Coupons, gift cards.  They have been doing it for years.  Can’t they see that any competitive advantage they dream of is just smoke?

I will get to the point.  The non-pharmacist MBA bean-counting Masters of the Universe are out of their depth.   They are drowning.  An MBA is bred for two things:

Ferret out waste and design programs that stimulate growth.

They seem to believe that adequate staffing to give superior service is WASTE.

Growth?  Give me a break.  Any well-run business that provides prescriptions will grow.  It is a no-brainer.

The question I see is this:  What model will prevail?  The model that makes the provision of professional services important?  Or the model that is in place in most stores?  That is the one that is run by the metrics and patient safety be damned?

We are very quickly approaching a crisis point.  If our industry cannot fill and provide the crush of prescriptions that are coming, we will fail and “they” will take it away from us.  If we fail to provide those prescriptions in a manner that assures patient safety, “they” will take it away from us.  Most of us are caretakers of “Dispensaries”.   Nothing will change for you.  Some writers here claim that your wage will suffer.

We can begin to fix it by sending the MBA Masters of the Universe out to the variety store where they belong.  We can start creating a real pharmacy paradigm by giving PHARMACISTS a big say in the creation of pharmacy programs.

Am I dreaming?  Many of you are good drug store merchants, so don’t tell me that you could not come up with better programs.  You are pharmacists for crissake.  This is YOUR industry.

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Written by in: Jp Enlarged |

4 Comments »

  • vga says:
    June 5, 2012 at 7:21 pm

    The model that survives will be the one that turns the most profit. Right now, the _only_ money is in filling prescriptions and giving out flu shots. So pharmacists are being forced to do ever more of those. As reimbursement rates drop, more prescriptions and flu shots must be dispensed in order to compensate.
    .
    If you want to change the paradigm, start figuring out how to get patients and doctors to pay for counseling, MTM, dose calculations, and every other cognitive service provided.

  • Pharmaciststeve says:
    June 5, 2012 at 9:29 pm

    @vga.. here is a current issue with two RPH’s that made mistakes Nevada…
    http://bop.nv.gov/Agendas/2012/06-06/2012-06-06_04-Discipline.pdf
    Please read them… both corp chains… defended their innocents because they “have policies and procedures in place to prevent such errors”… the RPH’s violated those P&P’s. Particularly read page 7 of *.pdf.. the RPH states that he doesn’t trust CVS.. they have asked him to do illegal things.. he had asked for more help .. which was denied.
    –
    All RPH’s are required to obey their practice act and the company P&P.. doing anything else.. is asking to be thrown under the bus.
    –
    read my blog .. there is a new whistler blower lawsuit by at RPH against CVS in PA.. if this RPH prevails.. this is going to ripple thru the industry… and for corporate pharmacy …not in a good way…
    –
    RPH’s need to start documenting and saving documents like they do for a third party audit..
    –
    Corp pharmacy has no business plan without RPH’s willing to be PIC… the PBM’s have no business plan without community pharmacies existence and willing to accept their low ball .. dangerous reimbursement levels.
    –
    Corp pharmacy knows that as long as RPH’s capitulate to do what they are told – even if it is illegal and/or dangerous – without documenting their concerns to HR/CCO and management – they can claim that you VOLUNTARILY CHOSE to break/violate their policies and procedures.. and thus .. YOU ARE ON YOUR OWN…
    –
    Your documentation doesn’t need to be threatening.. just .. I am concerned that recent edit may be in violation of P&P or practice act.. quote chapter/verse… please provide opinion – in writing – from HR/CCO or legal confirming/denying my opinion.. if they fail to respond in 1-2 weeks.. send another email.. do to your failure to respond to my previous email regarding the legality of a edict .. I am being forced to not conform until such time that I can be certain that the edict is legal.. your prompt attention to this matter will be appreciated.
    –
    If you have documented well.. being fired for refusing to do something illegal or against P&P… is a wrong discharge.. all RPH’s from a chain send a similar letter.. and what are they going to do… they are looking at a class action lawsuit if they start firing.
    –
    remember.. the entire drug distribution system is riding on your back…not theirs… and the vast majority of BOP’s only hold the RPH responsible for med errors and patient harm.. NOT THE PERMIT HOLDER… that is what the practice act says
    —
    with today’s instant communication.. bcc your letter(s) to all your fellow RPH’s within the chain…
    –
    Where is the APHA with the recent incident in NC… and Nevada and now PA.. sitting quietly in their elegant facade near Washington DC.. thinking about ways to make the profession better… while apparently not giving a thought to those individual RPH’s out in the trenches. Keep sending them your dues… or just give that money to some alcoholic panhandler on the street.. will -IMO – do just as much good…

  • Peon says:
    June 6, 2012 at 8:20 am

    For the past decade, I have been talking about the problems that we faced. And, for me, things looked quite gloomy. I was a bearer of gloom and doom. The chains were trashing pharmacy and getting more and more control over what we do. However, today, I am optimistic. I believe the chains will be forced to place patient safety as their number one priority. Lawsuits and government regulations will force this on them. These chains will be forced to treat pharmacy as pharmacy and not as a 5 and 10 variety store.
    -
    Pharmacists will be forced to become pharmacists instead of assembly line robots. The coming wave of baby boomers will change pharmacy for the better. This group, more educated and wanting more and better service, will push pharmacy more toward providing services, rather than just selling a product.
    -
    Chains will have to provide more than gimmicks, coupons and such, in order to distinguish themselves from their competitors. JP, those MBA’s that come up with all this little crap will have to find another job….could we say cleaning the floors?

  • The Redheaded Pharmacist says:
    June 6, 2012 at 6:30 pm

    The problem I see is that we will have things like MTMs coming as a large scale service in the community pharmacy setting but they will be watered down thanks to the influence of the large chains. Pharmacists will be forced to rush through MTM services just like we try to do flu shots as quickly as possible now. The business model of higher volumes as a means to recover profits from low margin prescription sales has reached a critical tipping point. We just can’t raise volumes enough or cut staffing enough to make the numbers work anymore. It is time to fundamentally change the way retail pharmacy operates. We have no choice. The current system is unsustainable. And if the profession can’t or won’t adapt to the changes we now face, we won’t survive as a profession. It’s just that simple.

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