Empowering Independent Pharmacy Owners for Financial Success

Read time: 4 minutes

Independent pharmacies are the unsung heroes of local healthcare, delivering essential services -- from administering flu shots to dispensing prescription medications -- to the patients they serve in their communities. Yet, as these vital institutions face mounting competition and rising operating costs, many independent pharmacy owners are increasingly searching for strategies to optimize performance and boost profitability.

Christopher Cella, R.Ph.,
National Vice President, RxOwnership

RxOwnership, a McKesson business, is dedicated to setting independent pharmacy owners up for success by equipping them with valuable tools, resources and insights on how to navigate the changing landscape of pharmacy ownership and thrive in their communities. The business supports pharmacy owners – regardless of wholesaler affiliation -- with financial planning and overall business health, from opening a new pharmacy to planning for retirement.

Christopher Cella, R.Ph., national vice president of RxOwnership, provides an in-depth look at the personalized financial planning, business consulting and strategic support services that RxOwnership provides to help pharmacy owners operate more efficiently and effectively.

What are some of the challenges independent pharmacy owners face today?

Owning a pharmacy can be hard no matter how long you’ve been doing it. From deciding on the best place to open a new pharmacy and writing business plans to dealing with changes in reimbursement, there’s a lot that can affect how well a pharmacy performs. Additionally, owners are tasked with keeping up with the latest technology and healthcare trends to stay competitive and give their patients the best care possible. It can all feel a bit daunting for an independent pharmacy owner.

How can RxOwnership assist with the financial planning aspect of owning a pharmacy?

The pharmacy industry is governed by numerous rules and regulations that owners must abide by.  We have experts who can help educate pharmacy owners on complying with those rules to protect their pharmacy’s reputation and financial stability.

While we offer many valuable services, one of the most important is our pharmacy operations consulting team. We utilize pharmacy-provided data to identify areas of opportunity and then suggest customized solutions for the pharmacy.

Our consultants might find things like workflow issues, poor inventory management, or staffing problems that can jeopardize store profitability. We provide actionable solutions that can improve overall store performance, including workflows, financial ops, inventory management and clinical performance.

Can RxOwnership help with the process of buying or selling a pharmacy?

Of course. RxOwnership offers a free service to estimate the value of a pharmacy. This helps sellers understand how much they can sell their pharmacy for, and it helps buyers see if the asking price is fair. We provide owners with checklists to help when buying, selling or starting a pharmacy to use a guide throughout their journey. We also maintain a private list of qualified sellers and buyers, which we use to identify potential deals that may best fit the needs of the prospective buyer or seller.

What resources does RxOwnership offer for prospective pharmacy owners?

For pharmacy owners starting a new business, we offer a dedicated team of experts to help them along the way. This team identifies locations that are in most need of pharmacy services using a geo-mapping tool. They also review population demographics in an area, analyze competition and assist with financial planning. Owners can work with this team for various business tasks, such as creating break-even templates, receiving franchise assistance, obtaining licenses, and understanding how to become a part of a Pharmacy Services Administrative Organization (PSAO), like Health Mart Atlas, McKesson’s PSAO.

What kind of ongoing support does RxOwnership provide pharmacy owners?

We know the journey of pharmacy ownership isn’t always smooth sailing, which is why we’re continuously committed to supporting pharmacy owners. We offer financial analysis services. We look closely at the pharmacy’s current operations and give a detailed financial review of how well it’s doing. And we provide actionable recommendations to help improve the business.

In addition to our financial analysis services, we also offer a variety of educational resources such as webinars, newsletters, eBooks and videos. These resources are designed to help owners stay up to date on the latest industry trends and best practices.

How does RxOwnership support pharmacy owners in preparing for retirement?

We know that retiring is as big a step as starting a business. We want to make both experiences as seamless and financially sound as possible. We have a successful track record of helping pharmacy owners plan their retirement and sell their businesses. I’d recommend that an owner connect with us before they officially retire. We can review their finances and provide recommendations to help improve them if needed. This can increase the value of the store. We can give a clear plan for how to step away from the business with confidence.

How can pharmacy owners get started with RxOwnership?

Pharmacy owners seeking to work with RxOwnership or gain further insight into our offerings are encouraged to explore our website at www.rxownership.com.