Becoming A Pharmacist Tips

One of the options you’ll probably have as a pharmacist is to buy a pharmacy.  And, depending on the type of person you are, this may or may not be a good decision.

I’ve been offered the chance on numerous occasions to buy pharmacies.  I declined for a number of reasons.  But, the two biggest were:

(1)  I don’t want employees
(2)  Insurance companies and chains

Employees

In case you haven’t received the memo finding a great employee nowadays in next to impossible.  Even finding a good or decent employee is difficult.  If you have more than one – which is highly likely with your own pharmacy – you should mentally prepare yourself.

And then keeping them is a struggle.

Of course, some people don’t mind having employees but for me, personally, I wouldn’t wish it on my worst enemy.

Having employees (or managing them as I have done) is akin to running an adult day care center.  Sickness, infighting and tamptrums aren’t only the qualities of preschoolers.  Adults are pretty good at it too.

You may think I’m being overly critical of employees.  If so, you either are much more patient and understanding then I am or, you have never managed or had one employee in your life.  If you don’t believe me ask any small business owner what it’s like finding, hiring and keeping an employee and you’ll likely be inundated with horror stories.

Yes, you could find a good one.  And, hell may also freeze over.

From experience, I have found good employees.  For about every 5 to 10 you hire you’ll find one gem.  Three or four might be OK and the rest are immediate tossers.

Which brings up a good point:  hire slow and fire fast.  In fact, as a manager I never opted to get rid of the bad ones fast enough.  You always think you can turn them around, make them better, etc, etc.

You can’t and you won’t.  Recognize them early and get rid of them.

Jack Welch -  the former CEO of GE – was famous for cutting the bottom 10% of his managers every year.  Now, I don’t know whether or not I agree with that – but it was clearly effective.

Anyways, since the opportunities to buy a pharmacy re-quired I baby sit employees I turned them down.

Insurance Companies, PBM’s and Chains

Personally, these were less of a problem for me than employees were.  But, for many independent pharmacies the triad of insurance companies dominating reimbursements rates, competition from PBM’s (Pharmacy Benefit Managers) and chain drug stores is driving them out of business.

Why were these less of an issue for me?  Be-cause these independents who continue to struggle with these issues are stubbornly holding to an old ideal of just filling prescriptions.

In the old days that worked because most folks paid with cash.  But now, everyone has insurance and the reimbursement rates are terrible.

A better solution – and the only one that makes sense – is to find a niche and dominate that.  Don’t try to compete on price – you’ll lose.

Front End

I was recently asked about buying a store I have done some relief work in.  Does a lot of prescriptions and is definitely making money.  But, aside from some other nursing home revenue the store has no other income sources.

For example, it’s located in a grocery store.  The front end (over the counter products, etc.) is owned by the store.  But, when a customer needs help they come to the pharmacist for guidance.

If I bought the pharmacy I would demand that I get all front end profits or it’s no deal.

Also, what happens if the insurance companies make another cut?  If that’s your only (or main) source of revenue there you sit with no other plan of action.

Simply filling prescriptions nowadays and trying to make a profit is a dying business.  Don’t do it.

I won’t go on any more about this because it’s a subject for another site, but if you buy your own store make sure you specialize in a niche.