Many factors effect your pharmacy business gross profit. These include reimbursement rates, your ability to purchase inventory at the best rate, but one overlooked area is your generic vs brand dispensing mix.
It is important to understand this as sometimes you make more off generics (dollars not percentages we can’t buy anything with %’s) and sometimes you make more off brands (though the % may be low).
Understanding your mix allows you to put in a strategy to be more profitable. If you know you make more per prescription on generics maybe you can move a brand customer to a generic or vice versa. Doing this could swing your profitability by a percent or two.
We suggest pulling a generic vs brand report then look at your top brands and generics and see if you should be flagging any particular drug.
At IRx Consulting we are Accounting experts and offer a comprehensive Pharmacy Accounting and Management service with a suite of complimentary services including Data Dashboards, Payroll & Human Resources and Pharmacy Management consulting.
