Pharmacy Business cost savings
The following list is not exhaustive but just a few points to guide you in thinking about reducing your business costs
Utilities
Electric/Water/Gas etc
Reducing costs by switching suppliers using comparison companies.
This service is available from Numark, Avicenna, Alphega, Cambrian Alliance plus others
Business Rates
Apply for business rates reductions using business rates specialists
Check with your local council for any grants or reductions available (these may not be automatic but may require you to apply)
Opening hours
Consider reviewing opening hours. Assess the cost saving of reducing supplementary hours i.e. Saturday morning, lunchtime etc.
For example, closing on Saturday morning (4hrs) will save approx. £6136/Yr.
Pharmacist @ £23/hr +dispenser @£7.50/hr
Staffing
Review staff absences and sickness levels
Conducting staff reviews may highlight staff wanting to reduce working hours
Maximise the skill mix within the pharmacy. Use all staff for multiple roles
Is there any such thing as a counter assistant anymore? The trend is towards a multi skilled assistant with a minimum of NVQ2 and a wider knowledge that can assist in the shop and the dispensary.
Reviews all services that are provided free of charge
Home delivery service
Review the need for free deliveries. Implement a delivery charge or limit delivery to selected patient groups only.
Blood Pressure/Cholesterol testing
Implement a patient charge or withdraw service
MDS/Blister packs
The least cost effective service we provide.
We are contractually obliged, only to provide compliance aids, including MDS to support patients who self-medicate, and who qualify under the equalities act once an assessment has been made. The assessment, and decision should be made and documented by the dispensing pharmacy, not social services, or hospital/GP staff. We are under no contractual obligation to provide MDS to support care agencies. Care agencies have no CQC requirements to demand MDS/blister packs. Many pharmacists are worried that care agencies will threaten to use another pharmacy, but the choice of pharmacy is down to the patient not the care agency. Reviewing and revising provision of this service may eventually help to improve your profit.
Example
Dispensing three prescriptions with four items per script in blister packs
Outlay = phone call to patient to confirm order +
Transport request to surgery +
Dispense prescriptions (1hr @ £8/hr) + = £26-£36 +drug cost
Accuracy checking by pharmacist or ACT (1hr @ £10-£20)
Delivery to patient (1hr @£8/hr)
Drug costs + blister pack
Income = drug cost + container allowance (£1.24x 12) = £14.88 + drug costs
Conducting four MUR’S in the same time period will generate £112 minus pharmacist cost = £90
Therefore, limit the number of MDS/blister packs to only those absolutely needed
Think very carefully before agreeing to provide FREE SERVICES to new patients and to existing patients requesting additional services, but ensure that any changes made to existing services agreed and currently provided do not impinge on patient care, and that safe alternative arrangements are in place for the patient.
Local business support
Local Councils and business forums often have business grants available. Popular grants include green energy grants for updating delivery vehicles to electric, and transferring energy companies to eco-friendly suppliers.
Public Support
The general public, and our patients have been very supportive of community pharmacy, and our campaign to fight these funding cuts, so please, when making changes, make sure that you take time to explain to the patient, or their carer, the reason behind your decision, and do your best to maintain goodwill and public support.