Drug Topics - December 10, 2007 - (Page 25)

www.drugtopics.com DECEMBER 10, 2007 DRUG TOPICS 25 Cover Story One-third of respondents said they are expecting to add white coats to their payroll. Half said the number of R.Ph.s on their payroll will remain the same, and only 10% anticipate trimming their R.Ph. staff. Seven percent said they did not know what would happen. DeAngelis said, “We will continue to hire high-quality pharmacists and pharmacy support staff to meet the needs of our growing store base and to ensure our customers continue receiving the high level of pharmacy services they expect from us.” Half of respondents mentioned they are expecting an increase in technicians, while 13% expect a decrease. Mark Griffin, president/CEO of Lewis Drug, Sioux Falls, S.D., said his chain doesn’t expect to hire more pharmacists, except in new stores. third of the reimbursements on government programs are basically under the cost line. They’re reimbursing us in 45 days versus two weeks.” DT CAPSULE Hot off the press Peering into the crystal ball Forty percent of chains anticipate 2008 will be a very good business year, 37% said good, while 7% said excellent. On the other hand, 13% said 2008 will turn out only fair and 3% believe the year ahead will be poor. In terms of sales for 2008, 63% of chain executives said sales in their pharmacy will increase, 11% said pharmacy sales will remain the same, another 11% predict sales will decrease, and 15% said they didn’t know. When it comes to which way operating expenses will head, 30% of respondents said operating expenses will increase, 50% said they will remain the same, 3% expect them to decrease, and 17% said they don’t know. When chain executives balance their books at the end of 2008, 55% expect to haul in higher net profits, 17% predicted there will be less money to count, and 17% believe they can keep their net profits on an even keel. Ten percent said they “don’t know.” Not surprisingly, Medicare Part D made it to the top of the list for the second year in a row as the most important news for chain execs this past year. The release of the AMP final rule came in second, followed by the adoption of NPIs. Griffin mentioned Medicare and Medicaid reimbursement issues as the top news, followed by the CVS/Caremark deal. Thirty-three percent of chain What is the biggest challenge executives mentioned that Part chain pharmacy will face in 2008? D had a positive impact on their pharmacy, 30% reported it had a Competition from chains’ offering generics at low or no cost 57% negative effect, and 37% said the jury is still out. On another Medicare Part D 47% front, 23% of respondents said 40% their chains provided medication Pharmacist shortage therapy management (MTM) 37% services. Four percent said they Implementation of average manufacturer price (AMP) got paid for such services. Getting physicians to use Medicare Part D was the most important news in 2007. White House predictions tamper-resistant Rx pads for Medicaid Rxs Getting physicians to put their national provider identification on claims 23% 23% Grand openings You can expect to see more pharmacies breaking ground in 2008. More than half (53%) of chains reported that they are planning to open new stores in 2008; of those, 69% said they would be freestanding pharmacies. DeAngelis said CVS plans to open more stores in 2008, but added, “We have not yet announced projected store growth for next year.” One respondent said his company plans to open new pharmacies in major malls. Only 13% of chain executives Competition 17% expect the new person in the from Internet pharmacies Oval Office will have a strong impact on their operations. Half 10% The shift of drug approvals from primary care to specialty drugs of chain execs reported that they do not expect the new President to have a major bearing on their 0 10 20 30 40 50 operations. One respondent commented, “Not a strong impact; however, any impact will be better than what we have had the past seven years.” 60 Let’s hear it for the associations Six out of 10 chains gave a thumbs-up to the way their pharmacy associations have represented them this year. Less than a quarter (23%) frowned on the way their associations have represented them, and 17% had no opinion. Griffin noted, “The National Association of Chain Drug Stores’ Steve Anderson has done a tremendous job The association is in good hands. Another important thing for pharmacy this year has been the cooperation between the independents and NACDS. It has never been better, and it is important for the whole industry that we work together on issues. We had an excellent working relationship in 2007.” DT Roadblocks ahead More than half (57%) of chain execs said the biggest challenge in 2008 will be competition from several chains’ decision to offer many generics at low or no cost, followed by Medicare Part D (47%), the R.Ph. shortage (40%), and the implementation of AMP (37%). “The biggest challenge for pharmacy is having the government in our business the way it is,” noted Griffin. “A http://www.drugtopics.com

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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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