New Tool Shows Members How to Optimize Gross Profit Per Script in 2020

One of the most important goals for a pharmacy owner is to optimize their gross profit per script and to navigate direct and indirect remuneration (DIR) fees through medication adherence.

Joshua McJilton, vice president of Member Success at CIO of Pharmacy Development Services (PDS), explained to attendees at the PDS 2020 Super Conference, held February 27-29, in Orlando, Florida, that although DIR mitigation is complicated, actions can be taken to lessen the impact.

“Every opportunity counts. Even if they’re small opportunities, would you rather have those opportunities in your pocket, or Caremark’s pocket?” McJilton asked during his session entitled, “Gross Profit Per Script in 2020.”

In 2019, PDS began developing a new members-only feature tab on their PDS Advantage website, Smart Dispense. McJilton explained that the tool contains a map of dispensing data across the United States. Here, members can pull the information into a report that generates and filters targeted opportunities of interest.

Members can review a period of up to 12 weeks in the past to see data from PDS member pharmacies. This allows them to review areas such as dispensing and reimbursement among other member pharmacies. They can also determine what margin those member pharmacies are making on certain therapies.

Members can search by primary plan, and drug. They will then have a table that shows the state, drug, primary plan, reimbursement, co-pay, and quantity, as well as the average gross margin per script per drug in a state, for a specific timeframe, on that plan. McJilton noted that at the PDS Super Conference in 2018, attendees were reminded that therapy optimization most greatly benefits patients.

“So, this collection of strategies has always been about the patient-first, patient-centered approach. And with the service-based pharmacy concept, the relationship that you create with your patients through what you dispense and why you dispense it, becomes even more important. You can provide services for folks who are not your dispensing patients and for those who are. Being thoughtful about what you’re dispensing matters more than ever,” McJilton said.

According to McJilton, SmartDispense maximizes these strategies, focusing on therapy optimization and better outcomes for patients, mitigating negative margin scripts, maximizing opportunities that are good for patients by capturing what they need to know, and building stronger relationships with providers.

“This [tool] puts it all in your hands to let you go filter through the data and find opportunities that are interesting. Some big, some small, but we’re giving you the power to act on that yourself,” McJilton said.

Reference

McJilton, Joshua. Gross Profit Per Script in 2020. Presented at the 2020 Super Conference. February 27-29. Orlando, FL. Accessed March 5, 2020.