Drug Topics - December 10, 2007 - (Page 23)

23 FOUL? Optimism reigns for community pharmacists Reid Paul hains are offering discounted and free generics. Medicaid is set to institute the new AMP rule. Pharmacists are in short supply, and operating expenses are rising. Yet in spite of all this, community pharmacists are surprisingly optimistic, according to the 2007 Drug Topics Business Outlook Survey. How optimistic are pharmacists? When asked what kind of business year they were expecting for 2008, 80% of the 460 respondents indicated that it was good, very good, or excellent. That figure represents a 15% jump over last year’s figures, reversing a five-year downward trend. Not since 2002 have R.Ph.s expressed that level of optimism. Interestingly, while only 65% of pharmacists surveyed last year expected a good, very good, or excellent year for 2007, in the current survey, 74% reported that this year will actually be good or very good, and another 10% expect this to be an excellent year. decrease. Last year’s pessimism seemed to be unwarranted as only 25% of respondents reported that 2007 net profits decreased from 2006, DT CAPSULE while 40% actually experienced an increase. Undoubtedly higher Rx volume plays an important role in the overall optimism and pharmacists are expecting a healthy growth in sales for next year. More than half of all respondents—59% in fact—predict that sales will increase in 2008 by an average of 10%. In addition, 67% of respondents predict that operating expenses will rise. A big part of those operating expenses will be taken up with salaries amid a widespread pharmacist shortage. Almost nine out of 10 respondents indicated they were experiencing an R.Ph. shortage, and 20% A profitable year indicated it was very severe or extremely seThe increased optimism seemed to draw vere in their state. Those numbers are Business from a number of trends. For example, down somewhat from last year when 39% of respondents indicated that expectations 93% reported a shortage and 25% felt it their company was planning to open was very severe or extremely severe. Not for new locations in 2008, up from just surprisingly, three-quarters of respon2008 6% in last year’s survey. Furthermore, dents replied that they expected R.Ph. 37% of respondents expected net profits salaries to rise by an average of 4%. to increase in 2008, while 28% expected a The optimism and improved profits came decrease over the 2007 profits. Those numbers despite a sense of increased competition. While marked a small improvement over last year when 35% of last year Medicare Part D topped the list of worries, this respondents expected a net profit, but 38% predicted a year’s focus turned to increased competition from big box C 87% of community pharmacists reported a pharmacist shortage.

Table of Contents Feed for the Digital Edition of Drug Topics - December 10, 2007

Drug Topics - December 10, 2007 Latebreakers Latebreakers in Depth Letters Health-System Edition - Cover Story Clinical Practice Professional Practice Special Report Technology Community Practice Unraveling Medicare 150 Years of American Pharmacy Rx Care In the Pipeline Cover Story: Fair or foul? Self-Care Chains and Business Government and Law Continuing Education: Natural Medicines for Bone Health New Products Advertisers Index Classified Viewpoint

Drug Topics - December 10, 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.