It is easy to be distracted from the core procedures and processes that drive our businesses. Distractions occur every day, from customer issues and new opportunities, to personal obligations. So how do we stay focused? One way is to track and measure key pharmacy metrics and KPIs (Key performance Indicators) that impact your business, but what are these?
We believe in 3 core areas on which to focus. Below we outline these along with metrics to follow. Hopefully this helps you manage your business without surprises!
Revenue
- Script Count – compare 2 week periods
- Sales Revenue – compare in 4 week periods
- Revenue/script – review monthly
- Total Patients – compare in 4 week periods
- Lost Patients – review monthly
- Transferred Patients – review weekly
- Revenue per payer – review monthly
Cost of Goods Sold/Inventory
- Gross Margin Dollars – review monthly
- Gross Margin % – review monthly
- Gross Profit/Script – review monthly
- Deposits vs Purchases – these are real dollars spent – review monthly
- Slow Mover Report (inventory not used for 100 days) – review monthly
- Total Inventory – review monthly
- Margin per payer – review monthly
Payroll
- Labor dollars per script – compare every 2 weeks
- Labor dollars as a % of sales – compare every 2 weeks
- Overtime – review amount every 2 weeks
At IRx Consulting we are Accounting experts and offer a comprehensive Pharmacy Accounting service with a suite of complimentary services including Data Dashboards, Payroll & Human Resources and Pharmacy Management consulting.
