Community Pharmacies Must Diversify Their Revenue Streams to Survive in Today’s Landscape

Community pharmacies have been dealing with a variety of financial pressures that have led to decreased profit margins. According to data from the 2024 NCPA Digest, gross profit margins fell to 19.7% this year for pharmacies, the lowest point in the report’s 10-year lookback window.¹ A key reason for this decrease is low medication reimbursement rates by third-party payers.

Although dispensing prescription medications is a primary income source for most community pharmacies, the continued decrease in reimbursement rates necessitates a move towards other ways to increase the bottom line. Offering additional clinical services, such as vaccine programs, point-of-care testing, and long-term care services, are great ways to do this. Another innovation that can help independent pharmacies is incorporating technology into workflows, which can help improve business efficiency and increase the patient experience.

AssureCare, a population health management company, is working to provide software that connects payors, providers, and pharmacies. The company’s goal is to help these parties work efficiently and effectively together to improve patient outcomes by managing medication-related risks. AssureCare’s technology solutions automate complex tasks, optimize workflows, and offer deep analytics, enabling informed decisions and cost-effective care delivery. AssureCare offers a wide range of solutions for community pharmacies including medication management, ONC certified EHR medical billing, credentialing and revenue cycle management services.

In a conversation with Drug Topics, Kelly Malkamaki, senior product pharmacy analyst at AssureCare, discussed how pharmacies dealing with decreased medication reimbursement rates can incorporate different revenue streams into their business, what role technology plays in pharmacies today, and how AssureCare can assist pharmacies.

“Pharmacies are no longer able to solely just dispense prescription medications and survive in today’s world,” Malkamaki said. “We have to think of new streams of revenue to bring in the doors.”

“We as pharmacists are the only health care professionals over the years that give away free advice,” she added. “I’m here to tell you that we are worth more than that. With that being said, maybe you’re not charging for delivery. Maybe you’re not charging for smoking cessation counseling. I’m telling you, maybe you can…All of these additional streams of revenue can help you not only survive but thrive in your pharmacies.”

Click here to learn more about AssureCare.

References

1. NCPA Releases 2024 Digest Report. News Release. NCPA. October 27, 2024. Accessed October 31, 2024. https://ncpa.org/newsroom/news-releases/2024/10/27/ncpa-releases-2024-digest-report