Small changes—like requiring that employees by paid via direct deposit instead of paper checks, or adjusting the number of times you issue paychecks every month—can go a long way in decreasing those costs. This metric is used as a measure of your pharmacy’s financial health. According to the 2018 NCPA Digest, the average pharmacy filled 59,137 prescriptions in 2017. PBA Health, an HDA member, operates its own VAWD-certified warehouse with more than 6,000 SKUs, including brands, generics, narcotics CII-CV, cold-storage products, and over-the-counter (OTC) products. It isn’t as important as some people would like to think. pharmacists independently evalu ated metrics based on clinic-specific needs. The BPS Board Certified Critical Care Pharmacist (BCCCP) program is a credential for pharmacists who have met the eligibility criteria below and specialize in the delivery of patient care services as integral members of interprofessional teams, working to ensure the safe and effective use of medications in critically ill patients. PBMs pay what they want, sometimes even reimbursing less than you paid for the product. Learn how to calculate and use the data to improve your pharmacy’s financial health. Learn the formulas to calculate these crucial metrics and discover what you can do to improve them. Sign up for a FREE subscription to Elements magazine! You can also encourage your current patients to refer their friends and family by rewarding them with coupons or discounts. For more information you can calculate your “inventory turn days,” which is the number of days it takes to turn over your pharmacy’s inventory. Use this formula to find that metric: Inventory Turn Days = 365 ÷ Inventory Turnover. That means if your liabilities increase, your net equity should also increase. Interest on loans is deductible as a business expense, and as long as it’s manageable, debt can be a great way to sustain your pharmacy’s growth. In 2017, the average gross profit margin rate was 21.8 percent, according to the most recent NCPA Digest. The company is a member-owned organization that serves independent pharmacies with group purchasing services, expert contract negotiations, proprietary purchasing tools, distribution services, and more. For 30+ additional pharmacy metrics, download our free white paper. Given that your inventory accounts for the bulk of your costs, even small amounts of savings can make a huge difference to your profit margins. Gross profit margin is the percentage of every dollar that’s available to cover fixed costs, operating expenses, and taxes. The net worth ratio is a debt to equity calculation. endstream
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Ideally, it should take you less than 37 days to turn over your inventory. Ideally, it should take you less than 37 days to turn over your inventory. The less you pay for you inventory, the better margins you earn. Once you have a good grasp on that measurement, work towards keeping the minimum amount of inventory you can without running out of products to maximize your turnover. If you have multiple pharmacy locations, you can calculate this figure separately for each location to find out how your payroll efficiency varies from store to store. 276 0 obj
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needs to be balanced against other metrics. When you divide that gross profit by total sales, you will find your gross profit margin rate. At the end of the day, increasing turnover requires selling more products more quickly. If your pharmacy is going through a period of extreme profits, it might seem smart to eliminate your debts, but that’s not always the best thing for your business. (BCIDP) program is a credential for pharmacists who have met the eligibility criteria and who in their unique practice specialize in the use of microbiology and pharmacology to develop, implement and monitor drug regimens that incorporate the pharmacodynamics and pharmacokinetics of antimicrobials to optimize therapy for patients. Reducing payroll costs doesn’t have to mean laying off trusted employees.
Sign up for our e-newsletter. BPS board certified pharmacists have been improving patient outcomes through specialized care since 1976. As a result, the individualized nature of the metrics in use was a ... stitutional review board determined that the project did not constitute hu-man subject research and was … The average independent pharmacy had payroll expenses of 13 percent of sales in 2017. Want more pharmacy business tips and advice? 298 0 obj
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This metric is the number of times your inventory has been sold and replaced in a given year. Lowering your cost of goods starts with your wholesaler contract. You also need to make sure you’re maximizing your rebates from your primary wholesaler. Payroll and personnel costs—which encompass salaries, healthcare costs, and employee bonuses—are one of the largest sources of overhead for independent pharmacies. You can find your annualized inventory cost of goods on your income statement, and your total inventory on your balance sheet. 0
For the average pharmacy, these incentives could be a difference of $15,000 per month. But hard data is a more precise indicator of how your pharmacy business is doing. The resulting number is net worth, a metric that banks analyze when they are deciding whether or not to lend you money. Some ways to do that include increasing your patient base, improving your merchandising, and encouraging upsells and impulse buys. The BPS Board Certified Infectious Diseases Pharmacist. If your inventory turnover is low, it means that medications are sitting on your pharmacy’s shelves too long. If there are as many employees working at the end of the day as there are during the busiest part of the afternoon, you’re probably paying for labor you don’t need. Build relationships with local physicians so they will refer their patients to you. To find the right balance, you need to get an accurate measurement of your inventory. endstream
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<. Knowing this number can help you make better decisions when it comes to inventory management and purchasing your pharmaceuticals.
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