Improve your pharmacy profit and cash flow by increasing your cash-based revenue.
With so many gurus out there that always seem to give conflicting and confusing information, we at DiversifyRx are known for keeping it simple. Since we have worked with thousands of pharmacies over our career, we noticed a handful of common areas pharmacy owners struggled with most.
Recently, we wrote a blog that covered the overview of the 6 Pillars to Pharmacy Profitability, and now, we are going to dive deeper into the first pillar; Cash-Based Revenue.
Why Cash-Based Revenue
First, let’s cover why cash-based revenue is vital to pharmacy profitability.
Cash-based revenue is classified by us when you complete a transaction with no third party involved.
That means there is no PBM, no billing, and you get money for a product or service right away. That simple. Many pharmacy owners overlook the importance and the power of cash-based revenue as they continue to focus on marketing and growth by filling more prescriptions.
Here are our current top five areas inside of Cash-Based Revenue that we know pharmacy owners must consider implementing to help increase their profits.
Selling supplements is often one of the best ways for pharmacies to increase their cash-based revenue. Pharmacy owners can educate their patients and community about a product and then sell it directly. No doctor is needed.
Of course, you need to have the right supplements relevant to your target audience in your community. We love professional-grade supplements that general stores can’t sell, and we love accessories that have a significant clinical component.
Here are some supplements we think every pharmacy should be selling to your patients:
Approved Medical Solutions offers pharmacies a simple and effective way to test a patient’s Nitric Oxide Levels. This test only requires 15 seconds and uses the tester’s saliva. Based on the result, you can prove if they need additional supplementation to increase their nitric oxide levels and re-test the customer to ensure it is working.
This supplement is an excellent add-on for patients on specific prescriptions or has certain conditions. We recommend offering it to all erectile dysfunction patients to help their prescriptions work better, and they will feel good too! Diabetic and high-blood pressure patients are also a great fit too.
Over half of your patients have a pet at home; sometimes multiple pets. Have you considered offering animal medications and unique animal supplementation to help animal owners? All of these are pure cash-based revenue!
Chances are, 50% of your current patients have a pet at home. Many people are concerned about their pets’ health and are willing to spend money on them, similar to their children. Make sure to offer valuable products and services to these customers.
Ananda Professional is the #1 pharmacist recommended CBD Brand and a fantastic whole hemp plant company. They have already invested $40 million into clinical research and have conducted the only FDA-sanctioned studies. Ananda Professional approaches CBD supplementation like a pharma company with evidenced-based formulas and a heavy reliance on clinical outcomes.
Ananda Professional has some unique products. Their PM Blend and women’s health products are truly amazing and life-changing. Our own Jason Faast has wholly transformed his sleep and life with the Ananda Professional PM Blend. Ananda Professional offers a money-back guarantee unlike anything else out there. This gives you the confidence to sell it to your patients risk-free. Lastly, you can enroll your patients in a clinical trial for the women’s health products, and they will get them for free!
Point of Care Testing (POCT)
POCT is a perfect additional revenue stream for all retail pharmacies.
POCT and pharmacies took a giant leap forward during the pandemic to help with COVID testing. There is a constant need in communities to have POCT with COVID, the flu, strep, RSV, UTI, and much more.
Make sure you update your CLIA waiver with any new tests you perform. Take advantage of all the hard work you did to perform COVID testing and pivot into other areas with the same infrastructure. Patients will pay top dollar for convenience. You can check out our blog dedicated to POCT in 2022; however, POCT is a phenomenal cash-based revenue to increase your profits.
A great place to look at when it comes to Cash-based revenue is PGx. Labs can no longer interpret these tests, which opens the door to pharmacies. There are many ways to get started with PGx. You can resell tests like other products you buy at wholesale and resell. Partnering with physicians is possible where you can make the interpretation and get a share of the revenue. Also, large employer groups often contract with companies to provide services, and pharmacists are critical in those models.
You can offer simple and valuable services to the community to help increase your cash-based revenue. Pharmacy owners often overlook benefits. Our habit is to just think from a product mindset. Many wellness services won’t require a pharmacist, and your staff can run these. Some examples are detox foot baths, weight loss classes, and smoking cessation, classes. These simple services can easily add to your overall profits at little cost. You can also leverage technology to provide these services online and to a broader range of patients.
Lastly, consultations are a fantastic way to get cash-based revenue. Get paid for your time and expertise! Consultations can cover a wide variety of topics.
Here are some examples you may want to consider: MTMs, nutrition, deprescribing, hormones, pH saliva consults, therapy optimization, and cortisol tests are just a few examples. Don’t underestimate your value to your community. Many patients are willing to sit down with a professional expert to better their health.
Pharmacies are missing out on a massive opportunity by not focusing more on cash-based revenue. While we covered some of our favorites that pharmacies can focus on to increase their profits, there are many more. With the rise of inflation and no corresponding increase in reimbursements, pharmacy owners must begin to focus on growing their cash-based revenue streams.
If you are looking for proven strategies to increase your profit, we invite you to our annual Pharmacy Profit Summit. Feel free to contact us at firstname.lastname@example.org at any time. We would love to help you grow your pharmacy profits.