Non-retail independent pharmacy niches are critical to your success.
You deserve to know how you measure up. Get the metrics you need to know for your non-retail independent pharmacy or niches.
LTC, Compounding, Clinical are just a few types of non-retail pharmacies or niches of your retail pharmacy. You shouldn’t be using the same benchmarks for these specialty niches as you do for your regular pharmacy business. To improve your performance, you need to know what to strive for. Let’s look at the common independent pharmacy niches and the KPIs you should be tracking for each. If you are looking for KPIs for a typical retail independent pharmacy then head over to Top 7 KPIs for 2021 or Improve Your Pharmacy With Data.
Clinical Services or Service-Based Pharmacy Revenue
I am so excited about the opportunities for clinical pharmacies or those who want to diversify into clinical revenue. My top growth opportunity for 2021 is Remote Patient Monitoring (RPM) services. You can also get into PGx, POCT, COVID, and collaboratively work with physicians for AWVs and CCMs, just to name a “few.” Here is a shortlist of KPIs you can be tracking in your clinical pharmacy:
- Number of Care Plans
- Clinical Revenue Dollars
- Clinical Revenue Percentage of Total Revenue
- Number of Interventions
- Number of Appointments
- Opioid Patients MME Average
- Number of PrEP Patients
- Contraception Visits
- POC Tests Given
- Number of COVID Tests
These KPIs should reflect the services you are providing and billing for. Don’t track PrEP if you aren’t doing HIV. The first 5 KPIs are the basics for a clinical service-based business. The latter half of the list are some examples of services that pharmacists are providing and billing for. You will need to set your own goals for these metrics. There isn’t an industry standard to benchmark against.
Long Term Care Pharmacy
For LTC pharmacies, the metrics that you are tracking will often be similar to your retail pharmacy. However, your goals for each metric will be different. Being an LTC pharmacy brings advantages that retail pharmacies can’t use. Below is an excellent general list for an LTC pharmacy. We also include what you should set as a goal to be a top performer.
- Average Revenue Per Rx – Overall >$82, Brand >$560, Generic >$35
- COGS % – <67%
- Average Rxs Per Patient – >13
- Packaging Cost Ratio – <2%
- Revenue Per SNF Patient – >$450 per month
- Revenue Per ALF Patient – >$200 per month
- Rxs Per RPh Consultant – >1,700
- Clinical Revenue Per RPh Consultant – >$5,000 a month
Compounding was my first love in pharmacy. It scratched my problem-solving skills itch along with a desire for a high level of patient care. Compounders have taken such a hit over the years from both payers and regulators. It is still such an integral part of pharmacy practice and, in my humble opinion, one of the best ways that patients can truly get the therapies they need. KPIs for compounding pharmacies can get complicated. While what you track is straightforward, what your benchmarks should be isn’t so clear. It will depend if you are cash-only, insurance-only, or a hybrid. Here is a list of KPIs and some benchmarks to help your compounding pharmacy thrive.
- Compounding Revenue %
- Compounding Profit % – >65%
- Gross Profit $ Per Compound Rx – $30 for cash, $60 for insurance
- Compounding Fill % – ideally 100%, >90% is good
- Marketing $ Ratio – 3% to maintain, 6% for small growth, >9% for aggressive growth
- New Patients Per Month
- New Prescribers
The Power Of Reporting
There’s an old business saying what gets measured gets managed. Take it a step further to what gets reported gets improved. Now that isn’t saying some magical fairy will come and improve your numbers. What happens here is human nature. When you know any information will become public, even if it’s a small public like your staff, you want it to be good. Blame it on our vanity. People want to have a good report and gain the approval of others. So, report your numbers each month. You can report to your staff, family, other pharmacy owners, or you can use a private Facebook group such as our DiversifyRx group.
If you need any help at all, DiversifyRx is a free resource, and you can reach us via our social channels or at firstname.lastname@example.org.