The landscape of independent pharmacies is changing at a rapid pace. With prescription reimbursement rates looming and competition from big-box chains, community pharmacy owners have learned that there are tremendous opportunities beyond filling prescriptions.
The good news? Your pharmacy has a competitive advantage that big-box chains do not – your focus, your agility, and the personalized commitment to your communities.
Dr. Stephen Pisarich, owner of TD Pharmacy in Gulfport, MS, discusses creating a successful community pharmacy in our article, “A community pharmacy is like a jet ski – personal service, one client at a time.” That customer service becomes even more important as you extend into clinical solutions, wellness programs, and specialty product development.
The Reality of Community Pharmacy Revenue
Traditional prescription dispensing margins have been squeezed year after year. Insurance reimbursements keep declining; DIR fees eat into profits; and big chains negotiate better rates with PBMs. But here’s what the chains cannot replicate: the trusted relationship you have with your community combined with the clinical expertise you bring every single day.
This illustrates why strategic change is needed to increase revenue in community pharmacy. Consider the overall health needs of your community. What gaps in local healthcare are available?
The revenue opportunities are those gaps.
Your Expertise and Clinical Services
Pharmacist licenses are earned through years of clinical training and expertise. Community pharmacy clinical services enable you to commercialize that knowledge while also providing real benefit to your patients. And unlike prescription dispensing, many clinical services can be provided in community pharmacy as cash-based services. You control pricing, so you won’t have to struggle with insurance reimbursements.
Vaccines and Preventive Care
Vaccinations are the gateway clinical service many pharmacies use, but don’t stop at flu shots alone. Consider offering:
- Travel vaccines and consultations
- Shingles, pneumonia, and other adult immunizations
- School and sports physical consultations
- Wellness screenings (blood pressure, cholesterol, glucose)
These services invite customers into your pharmacy who might not need a prescription that day but are willing to pay cash for convenient, immediate care. In our article, how to build a marketing plan for your independent pharmacy, convenience is the most important thing for Gen X’ers and Millennials. And they’re willing to pay for it.
Medication Therapy Management (MTM)
MTM services are arguably one of the most valuable clinical services you can provide. Whether you are treating patients or making comprehensive medication reviews, these sessions show your skills and improve patient health outcomes. Many pharmacies charge $75-150 to complete MTM, and the value usually goes up with higher patient loyalty.
Point-of-Care Testing
Investments in point-of-care testing equipment can yield significant returns. Similar things: INR monitoring for patients on warfarin, strep throat testing, flu, and COVID-19 testing immediately meet patient needs and provide same-day results. Patients enjoy the ease and service, and you can charge fees that would be profitable.
Community Pharmacy Wellness Programs
Community pharmacies have the potential to shape programs that convert one-time visitors into long-term patients.
Full-service diabetes management programs combine clinical services in one place with continuous service and product sales. A well-rounded program may include initial screenings, blood glucose testing (and A1C testing), nutrition counseling, medication synchronization, and discounts on diabetic supplies. This model generates predictable recurring revenue, which is something every business owner appreciates.
Given that obesity rates are on the rise and GLP-1 medications are abundant, patients need weight management support. If you or a member of staff is certified in nutrition/weight management, this presents a significant revenue opportunity through structured programs that include check-ins, supplements, and recommendations.
Supplements and Specialty Goods: The Margin Opportunity
Strategic product selections drive revenue growth in community pharmacy. As referenced in our piece on pharmacy layout/design, product placement near your counter should be in high-traffic areas.
Professional-Grade Supplements
The supplements market is booming, but almost all stores carry only consumer-grade products. Make your pharmacy the source of choice for professional-grade pharmaceutical supplements, specialized probiotics, high-quality omega-3s, and professional-grade vitamins.
Your clinical experience lets you provide patients with reliable recommendations they can trust. Many professional-grade supplement lines have margins of 40-50% and are excellent income generators!
Compounding Services
If you have the space and experience, compounding services can set your pharmacy apart. Hormone replacement therapy, compounding, pediatric formulations, and dermatologic preparations all represent niche markets for which patients have difficulty locating providers. As mentioned in our article on purchasing an independent pharmacy, evaluating whether to offer compounding services in your market should be a consideration during the business planning process.
Durable Medical Equipment (DME)
Don’t disregard the revenue opportunity from DME sales. High-margin products such as compression stockings, orthopedic supports, diabetic shoes, and mobility aids provide actual solutions for patient needs. Train staff to fit compression stockings and other specialist equipment, again making your community pharmacy a one-stop shop for various needs.
The Roll Out
In our article regarding your independent pharmacy planning, conducting a pharmacy audit identifies strengths to leverage and weaknesses to address. Start small with one clinical service, show the concept, then add others and gauge the community’s reaction. Perhaps start with immunizations, then add point-of-care testing, and finally a diabetes management program.
First Financial Bank provides specialized pharmacy financing to purchase equipment, make space modifications, or provide working capital when new programs are launched. You can strategically grow if you have a good financing partner.
Promoting Your New Service
Great services amount to little if your community doesn’t know about them. Your strategy could benefit from the social media campaign by independent pharmacies; understand how different generations respond differently to marketing strategies. Leverage every patient encounter as a marketing opportunity. When someone checks out a blood pressure prescription, highlight your wellness screening services.
The Bottom Line
An independent pharmacy’s future should not simply be about pills; rather, it should be about becoming a healthcare destination. The addition of clinical services, wellness programs, and specific product selections is creating a model for your business that leverages your strengths as a trusted healthcare provider.
The big chains can’t mimic your personalized quality or your ability to be nimble and quickly scale. That is your competitive edge.
Let’s explore financing for your pharmacy’s expansion. First Financial Bank helps independent pharmacy owners expand their businesses with personalized financial options. Let’s chat.
