Drug Topics - December 10, 2007 - (Page 24)

24 DRUG TOPICS DECEMBER 10, 2007 www.drugtopics.com Cover Story DT CAPSULE $4 generics was one of the top stories for 2007. and supermarket pharmacies offering discounted generics. When Kmart first introduced its discounted generic plan last year—followed shortly thereafter by Wal-Mart’s own plan— it set in motion an increasingly competitive market, with chains and big box pharmacies offering steeply discounted and even free generic medications. Although cash customers make up only 10% of the business for most pharmacies, it is clear that the discounted generic movement is having an impact. Respondents pegged the discounted generics as their top concern, with 33% of respondents indicating that it was a negative factor impacting their company, followed by Medicare Part D (32%) and the move of some cough and cold medicines behind the counter (19%). A nuanced view of Medicare Part D Now that Medicare Part D has moved out of the initial shock-and-awe phase, pharmacies are beginning to get a better grip on its true impact. Nevertheless, Part D was the top news item for 2007, with 28% of respondents selecting it as the top story, followed by the release of the AMP rule (17%), the drug error TV exposé on “20/20” (10%), and the growth of in-store clinics (9%). While the Presidential election is less than a year away and will certainly be a top news story for 2008, many pharmacists are ambivalent about how important it will be for pharmacists. Forty-three percent of respondents indicated that they did not expect the new President to have an impact, while 25% said that they did. The remaining 31% were unsure of the impact. Still some respondents hoped that “the elections will focus on the healthcare issues and, thus, will impact the delivery of health care.” Respondents were more comfortable commenting on the importance of specific government programs. When asked specifically about how Part D was impacting their business, 28% of respondents indicated it had a positive impact on their pharmacy, while 37% felt it had a negative impact. The remaining 35% did not know what impact the program has had on their pharmacy. In comparison, last year, 55% of respondents felt the impact was negative, while only 24% saw it as a positive. As one respondent this year noted, “Part D had a dual effect. First, it created severe problems with reduced cash flow and lower profit margins, but it increased the volume of business and helped many patients take medications that they previously were not taking because of cost. Many patients qualified for additional help with their prescriptions and had no help previously.” One of the promising aspects of the Part D program has been the increased opportunity to deliver medication therapy management services to patients. Drug Topics’ survey found that 34% of community pharmacists reported they are providing MTM services, although only 18% were actually reimbursed for it. DT Chains are looking on the bright side Sandra Levy edicare Part D. Low- and no-cost generics. The AMP final rule. The “20/20” exposé on drug errors. The adoption of NPIs. These were just a few of the issues that caused nail-biting among chain pharmacy executives this past year. Still, the majority of chain executives should be pleased with the way the year has turned out as they What kind of business year bid adieu to 2007. will 2008 be Before they close the books on 2007, for your pharmacy? 27% of chain topsiders who responded to Drug Topics’ survey said they anticipate it would end up being a good year, 50% 37% 13% said it would be very good, while 7% Good Fair said it would be an excellent year. SevenPoor 3% teen percent who see the glass as half Excellent 7% empty said that 2007 would turn out fair. 40% When asked to compare their company’s Very Good anticipated 2007 net profits with those of 2006, 63% of chain executives said they expect M profits to increase, 17% are bracing for a decline, 10% anticipate profits will remain the same as last year, and 10% said they “didn’t know.” The top business booster this year has been continued high demand for medications by an aging population, which was cited as a positive factor by 70% of chain brass. Fifty-seven percent mentioned increased business from offering generics at low or no cost. One respondent said immunization clinics have had a positive impact on business. The majority of chain moguls bellyached about decreased business from competing discounters offering generics at low or no cost, followed by Medicare Part D. Cutting fatter paychecks Most (82%) of the responding chain execs said R.Ph.s’ salaries are going up in 2008. On average, the expected hike is 4%. CVS spokesman Michael DeAngelis said, “Pharmacists’ salaries and total compensation packages at CVS will remain competitive with the marketplace.” http://www.drugtopics.com

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

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