Navigation Links
NCPA Digest Finds Independent Community Pharmacies Stable Despite Economic, Third-Party Challenges
Date:10/25/2010

PHILADELPHIA, Oct. 25 /PRNewswire-USNewswire/ -- The National Community Pharmacists Association (NCPA) today announced the availability of the 2010 NCPA Digest, sponsored by Cardinal Health, which found that independent community pharmacy owners were able to generally stabilize their business in 2009 despite a stagnant economy, the growing influence of government health care programs, declining prescription drug reimbursements and the questionable business practices of pharmacy benefit managers (PBMs).

(Logo: http://www.newscom.com/cgi-bin/prnh/20100106/DC33253LOGO)
(Logo: http://photos.prnewswire.com/prnh/20100106/DC33253LOGO)

"The NCPA Digest findings demonstrate that an independent community pharmacy business model that is adaptable, yet rooted in sterling customer service and competitive pricing, has a viable place in today's marketplace," said Douglas Hoey, RPh, NCPA Acting Executive Vice President and CEO. "Independents helped their patients and their businesses by diversifying their revenue streams through providing convenient patient services, such as immunizations, and helping patients manage their prescription costs and medication regimen in a down economy."

Hoey added, "As a result, after a sharp drop in the number of pharmacies in 2006 when Medicare Part D went into effect, the number of independents has generally stabilized and grew modestly."

Now in its 78th year, the NCPA Digest provides a comprehensive analysis of independent community pharmacies' financial state. Noteworthy findings include:

  • The number of total independent community pharmacies rose from 22,728 in the previous year to 23,117.
  • 51% of independent community pharmacies are in areas of 20,000 people or less, 21% in areas with 20,000 to 50,000 people, and 28% in areas greater than 50,000 people.
  • There was a 4% increase in the number of prescription drugs dispensed from the previous year.
  • The generic prescription drugs dispensing rate was 69%, which represents a 4% increase and exceeds the low-60% average generic dispensing rate of the largest, PBM-owned mail order pharmacies.  
  • 30% of dispensed prescriptions were from the Medicare Part D program and 14% were from Medicaid.
  • 76% of independent community pharmacies offer immunizations (up from 46% the previous year), 76% offer personalized home delivery (often at no cost), and 68% offer medication therapy management.
  • Independent community pharmacies providing immunizations are able to generate an average of $10,000 in additional revenue.
  • Independent community pharmacies are utilizing technology to make their staff more productive, with 43% using at least one kind of an automated dispensing technology.

The average independent community pharmacy's pretax profit margin remains at 3.2% for the second year in a row. That, combined with a dependence on prescription drug reimbursements for more than 90% of revenue, leaves independents vulnerable to any changing dynamic in the marketplace and limits business expansion opportunities. By contrast, publicly traded chain pharmacies sell much more front-end merchandise that often yields higher profit margins, while major PBMs saw their profits increase five-fold during this decade.

The government's role is likely to accelerate further with passage and implementation of the Patient Protection and Affordable Care Act. Fortunately, in that legislation NCPA garnered bipartisan support for a critical fix to mitigate draconian cuts to Medicaid generic prescription drug reimbursement; an exemption from an onerous and duplicative accreditation for the continued selling of durable medical equipment; and common-sense disclosure requirements for PBMs in the health care exchanges that will be operational in 2014.

The NCPA-endorsed PBM Audit Reform and Transparency Act (H.R. 5234) would expand to millions of additional Americans the cost savings and pharmacy choice expected to result from greater PBM transparency. Collectively, these measures support patient access to independent community pharmacies. At the same time, two trends accelerated by the economic downturn – surging Medicaid enrolment and tightening state budgets – create uncertainty for these pharmacies.

"As an independent community pharmacy owner I can attest to the impact of the government becoming our largest business partner and for the need to let our elected leaders be aware of our concerns," said Joseph H. Harmison, PD, NCPA President and pharmacy owner in Arlington, Tex.  "By remaining proactive we can continue providing the caliber of patient services that earned us high marks in the most recent annual J.D. Power & Associates pharmacy satisfaction survey."  

The National Community Pharmacists Association (NCPA®) represents the interests of America's community pharmacists, including the owners of more than 23,000 independent community pharmacies, pharmacy franchises, and chains. Together they represent a $93 billion health-care marketplace, have more than 315,000 employees including 62,400 pharmacists, and dispense over 41% of all retail prescriptions. To learn more go to www.ncpanet.org or read NCPA's blog, The Dose, at http://ncpanet.wordpress.com.


'/>"/>
SOURCE National Community Pharmacists Association
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Male Birth Control Pill, Blackberry Extract for Gingivitis, Skin Cancer and Digestive Health Top List of New Medical Discoveries
2. Schering-Plough Highlights PEGINTRON(TM) and Boceprevir Hepatitis C Data Presentations at Digestive Disease Week (DDW) Annual Meeting
3. Alba Therapeutics Announces the Presentation of Results of a Phase IIa Clinical Trial for Larazotide Acetate for the Treatment of Celiac Disease at the Digestive Disease Week Conference
4. Despite Advances in the Accuracy of CT Colonography in Detecting Polyps, Digestive Health Experts Urge Patients to Consider Risks and Realities
5. Shire Presented Results of a New Database Analysis on Lialda(R) (Mesalamine) and Other 5-ASAs for Ulcerative Colitis at Digestive Disease Week
6. Definitive Outcomes of Radiofrequency Ablation for Barretts Esophagus Using the HALO Ablation System Reported at the Digestive Disease Week Meeting for Gastroenterologists and Esophageal Surgeons
7. Weekly Digests Investor Essentials Special Report Identifies Unique Investing Opportunities in the H1N1 Swine Flu Outbreak
8. CREON(R) (pancrelipase) Delayed-Release Capsules Improves Digestive Outcomes In Adults With Chronic Pancreatitis
9. Kristalose(R) Clinical Data to Be Presented at Digestive Disease Week(R) Meeting
10. Lexicon to Present Phase 2 Clinical Data for IBS Drug Candidate at Digestive Disease Week
11. ChemoCentryx Reports that Traficet-EN Maintains Remission in Crohns Disease at the Digestive Disease Week (DDW) 2010 Conference
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/24/2017)... Research and Markets has announced the addition of the "Deep ... to their offering. ... The Deep Learning: Drug Discovery and Diagnostics Market, 2017-2035 report examines ... deep learning solutions within the healthcare domain. Primarily driven by the ... solution to generate relevant insights from medical data. ...
(Date:3/24/2017)... , March 24, 2017 Today ... Equipment stocks, which are: Neovasc Inc. (NASDAQ: NVCN), Hologic Inc. ... Inc. (NASDAQ: SSH ). These companies are part ... prior gains on Thursday, March 23 rd , 2017, with ... while shares of health care companies in the S&P 500 ...
(Date:3/24/2017)... , March 24, 2017  Eli Lilly ... announced plans to invest $850 million in its ... facilities across its U.S. enterprise, including research laboratories, ... investments are being driven by demand for Lilly ... potential medicines in development targeting cancer, pain, diabetes ...
Breaking Medicine Technology:
(Date:3/24/2017)... ... 24, 2017 , ... “Vintage and Harvest A Cultivation of Christian Love” is ... residing in North Carolina with his wife, Anna Marie. He and his wife are ... David is also the author of “Shadow and Substance.” , “Love, the agape kind, ...
(Date:3/24/2017)... ... March 24, 2017 , ... “The Adventures of Joey, ... and silly dog who lives his life to the fullest, as God intended. “The ... author Patti Holmgren, a mother and grandmother pursuing her passion for writing, especially about ...
(Date:3/23/2017)... ... March 23, 2017 , ... A recent report from the ... teacher preparation programs. The NCTQ report suggests, based on a review of GPA and ... improve teacher quality in the U.S. It argues that this higher bar should be ...
(Date:3/23/2017)... (PRWEB) , ... March 23, 2017 , ... ... health services to their communities, 16 more public health departments have been awarded ... decisions bring another 4.5 million people into the expanding network of communities across ...
(Date:3/23/2017)... ... March 23, 2017 , ... PAINWeekEnd (PWE) Oklahoma ... North Broadway Avenue, will be an educational and exciting program providing busy clinicians ... management of chronic pain. , Oklahoma is in a healthcare crisis. The state ...
Breaking Medicine News(10 mins):