Drug Topics - December 12, 2008 - (Page 31)

BUSINESS OUTLOOK industry continue to exert pressure on pharmacies, including ﬁercer competition from mail-order drug companies, stricter Medicare payment policies, and higher operating costs. The exclusive Drug Topics survey was conducted between Oct. 19 and Oct. 24, 2008. Drug Topics e-mailed the survey to 12,452 pharmacists, of whom 303 responded, for a response rate of 2.4 percent. Among the poll’s other ﬁndings: • A positive 44 percent of community pharmacists expect sales to increase in 2009. • In a related vein, 27 percent predict an increase in net profits next year versus 36 percent who expect a decrease in net proﬁts in 2009. • On the spending side, 61 percent forecast t h a t operating expenses in 2009 will jump an average of 10 percent. • Sixty-seven percent of community pharmacists expect pharmacist salaries in their businesses to increase in 2009. Respondents, who anticipate an increase in pharmacist salaries, project an estimated median increase of 4 percent. • Comparably, 20 percent do not expect salaries to increase. • Thirty-two percent of community pharmacists say they or their companies are planning to open new pharmacies in 2009, while 38 percent say they do not plan to open new pharmacies in the coming year. • Community pharmacists say the top events affecting pharmacy in 2008 include the deep discounting of generic drugs by Wal-Mart (77 percent), cutbacks in state Medicaid reimbursement (66 percent), and major drugs going off patent (50 percent). • The positive factor most frequently cited (by 70 percent of respondents) that affected, or will continue to affect, pharmacies this year is major brand drugs going off patent. • Those surveyed were evenly split on Medicare Part D business in 2008: 29 percent of community pharmacists say Medicare Part D has had a positive impact on their business; 29 percent say it has been negative. • An overwhelming 83 percent of community pharmacists polled say there is a shortage of pharmacists in their state. Of these respondents, 17 percent say the shortage is extreme or very severe. • In advocacy circles, 55 percent of respondents are satisﬁed with the way their pharmacy associations have represented them on industry issues this year. Some pharmacists are apprehensive about the contracting economy and the downward pressure it continues to have on pharmacies and their customers. Robert Kistler, RPh, who owns a pharmacy in Reading, Pa., said that the escalating cost of living is affecting consumer choices, which in turn impinges on his business. Though proﬁts are incremental for many pharmacies, overall costs continue to rise at a rapid rate. “Operating expenses are already increasing,” said Richard N. Logan III, PharmD, whose family owns two pharmacies in southeastern Missouri. “We have seen an increase in drug costs over the past 12 months. We do not charge for W W W.D R U GTO P I C S .C O M D E C . 15, 2008 DRUG TOPICS 31 http://WWW.DRUGTOPICS.COM

Table of Contents Feed for the Digital Edition of Drug Topics - December 12, 2008

Drug Topics - December 12, 2008 Contents Up Front Up Front In Depth Letters Health-System Edition Cover Story: Controlled Substance Disposal a Growing Problem for Hospitals Pharmacists Hope for Speedy Approvals Deaths from C. Difficile Increasing PharmMD Teams with HealthSpring RX Care Commentary Ohio Hospital Automates Pharmacy The Business Outlook for 2009 OTC The Pharmacist's Duty to Warn: Implications for Pharmacy Practice New Products Viewpoint

Drug Topics - December 12, 2008

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