• LATEST PHARMACY NEWS AND EDITORIAL

    LATEST PHARMACY NEWS AND EDITORIAL

Our latest thoughts and inspirations on buying a pharmacy, starting a pharmacy, and ongoing pharmacy operations

Owen BonDurant, President: Owen is 2nd generation (his Dad is part owner in a 9 store pharmacy chain) in the pharmacy business and has worked in independent pharmacies since before he can remember. He has worked in almost every role a small pharmacy has to offer from cleaning the bathrooms, working as a pharmacy technician, marketing, starting and running a durable medical equipment company and managing employees. Owen graduated from Miami University of Ohio with a degree in marketing and a minor in management information systems (MIS). After graduating he briefly worked for Western and Southern Financial Group before deciding he wanted to return to the pharmacy industry where he started medical equipment business for a chain of 9 independent pharmacies. From there he moved to Chicago and started working for Experian QAS and for the last 7 years has been selling software to major retail organizations along with managing the Midwest sales team. Recently the itch to come back to the pharmacy industry, as it truly is all he knows, and Independent Rx Consulting was born.

Selling your pharmacy – How do you transfer your licenses and 3rd party contracts?

Licenses and contracts when selling a pharmacy.

Congratulations you found a buyer, they have financing and have agreed on a price. That part is hard but now you have to begin paperwork. In an asset sale you will need to transfer your licenses and 3rd party contracts so the new owner can take over.

This is easier said than done. First the laws and regulations vary from federal to state and from state to state. In addition it’s probably been years since you actually looked at all the contracts and licenses you have. There is probably a company like Relay Health, Humana, state Medicaid, business licenses, board licenses and on and on.
Continue reading
734 Hits
0 Comments

Problem Solving the Key to Independent Pharmacy Ownership

Being an independent pharmacy owner.

There is much that can be controlled and predicted when you become an entrepreneur but that is not what I am here to talk about. Those who plan and listen to others will succeed especially in the independent pharmacy industry. The success attribute not often spoken about is the ability to problem solve. It is not possible to create a business without this skill. I wanted to provide you with some insight on the things that can happen so maybe you won’t feel alone when something similar happens to you, because it will!

Problems can be big or small but they all take time and can be very frustrating. I talked to a pharmacy owner one time that promised he would deliver to his patients. He leased a delivery car and hired a part time employee to do the deliveries. On the first day the employee didn’t show up and he got 5 delivery orders. As an entrepreneur, he said to himself, I will deliver the orders after hours, but when he went to do it the new leased car wouldn’t start. It was not a big deal he took his own car but these things happen and how you handle it daily can be the difference between succeeding and not.
Continue reading
745 Hits
0 Comments

Calculating the Value of a Pharmacy

We see two commonly used philosophies for valuating a pharmacy:

         1. Multiple of EBITDA

         2. Cost per Script

Multiple of EBITDA – Typically this is used when an individual or other independent is evaluating the pharmacy. These buyers will want to see at least three years of financial documents. This will include an income statement that should outline EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and a cash flow statement. This tells the potential buyer what their return on investment will be and thus what the value of the pharmacy is to them.
Continue reading
1618 Hits
0 Comments

What to Look for When Considering a Start-up Pharmacy

What to look for when starting a pharmacy.

There is a lot to consider when starting a pharmacy but what I want to focus on today is the preliminary search. We find it best to look at starting a pharmacy as a big puzzle and each puzzle piece is one section of the start-up process. If you try to do everything at once you will make mistakes. Focus on what needs to be done first, do what you can for that step and then move on. The first step in our process is determining if there is opportunity in the target area. Below I have outlined some key areas to focus on when trying to find the best opportunity.

1. Determine if there are enough scripts being written in the target area to support a new pharmacy. You can do this in several ways, go into the pharmacies find out how many scripts they are filling per week or hire a consultant like us and we will do that analysis for you. You may also know this because a chain buys a busy independent but it is always good to do the research.
Continue reading
725 Hits
0 Comments

What Licenses are Needed to Open a Pharmacy?

What Licenses are needed to open a pharmacy and how do I get them?

Can Independent Rx Consulting or anyone else help you speed up the licensing process for an independent pharmacy? Most of the time yes. The biggest factors within this is knowing what licenses are required, what you need to have prepared and where to get it. It isn't just a DEA license, you have the state board, 3rd party billing and employee ID's just to name a few.
Continue reading
1374 Hits
0 Comments

Signup For Our Mailing List