In an article published by Chemist & Druggist earlier this year, finance experts gave their advice on how pharmacists can get the most out of their businesses, especially ahead of proposed government funding cuts in England. In addition to effective staff communication and remaining open to investment, one of their key pieces of advice was to make use of the ‘sophisticated software’ available on today’s market, which can go some way towards generating cost-savings.

To build on these tips we’ve outlined some key business areas for consideration, where community pharmacists can incorporate technology to help boost performance and improve their bottom line.

 

Purchasing – Are you buying at the right prices?

Government funding cuts in England, along with direct-to-pharmacy (DTP) and Reduced Wholesaler Model (RWM) schemes are having a significant impact on independent community pharmacies. Because of this, it’s important that pharmacists make their buying processes as efficient and cost effective as possible.

As discussed in a previous blog, rule-based order processing systems are emerging as a viable way to streamline activities and create savings. By deploying software such as Positive Solution’s OrderManager, pharmacists are able to buy much more efficiently. Rules and preferences can be set to cap the prices paid for specific items, ensuring that supplies are always purchased within budget. Furthermore, cost-efficiencies are secured through the substitution of branded UK products with more profitable non-branded alternatives. This can be implemented for all branded products or just DTP / RWM lines, again giving pharmacists tighter control over their spending.

 

Retail sales –are you maximising your retail opportunities?

C&D’s finance experts recommend maximising service income, such as completing MURs where appropriate and providing other services such as flu vaccinations and smoking cessation. However, it’s also important to seize the opportunity presented by the sale of OTC products. Retail sales can be a very profitable part of the pharmacy business, so it’s vital that pharmacists stock their most profitable lines and the best-sellers within each product category.

A robust EPoS system, with enhanced functionality can play a key role in helping pharmacists to grow their OTC business. Software such as Positive Solution’s Analyst EPoS can analyse existing sales data to ensure that pharmacies only stock items that are proven to sell within the community. As a result, money is not tied up in unwanted stock and can instead be used in other areas of the business. An EPoS system can be a particularly effective promotional tool, helping to increase revenue by managing campaigns and driving sales of specific product ranges. It can also support merchandising by enabling the printing of shelf edge labels to maximise OTC sales.

 

Reimbursement –are you getting the most out of your PMR system?

In light of the proposed Government cuts, the ability to ensure that pharmacies are being reimbursed correctly for prescription items and other expenses representss a significant step towards improving cash flow. As pharmaceutical wholesaler Mawdsleys explained in their recent campaign in support of the NPA, the effective use of a pharmacy’s PMR system is crucial in helping to make a reasonable estimate of overall NHS income, and enables payments to be monitored in accordance with this.

According to PSNC best practice guidelines, pharmacists should opt for fully functional PMR systems that enable easy prescription sorting, prescription charge exemption information recording and the endorsing / sending of prescriptions for reimbursement with the correct information. These key features will help to streamline the remuneration process and make sure pharmacies are being paid correctly.