Maximizing Your Use of the Rx Assassins CASH Report

Transcript

Chris Darling:

We hope that last month was a great introduction to the IPC, CASH Compliance, and Savings Helper report. Now, we want to dig into the details a bit to show you just one of the ways your report can help put real dollars in your pocket and transform your IPC warehouse into a powerful savings tool. If you have any questions after this presentation, please don’t hesitate to reach out to either IPC or Rx Assassins. We will be glad to help you optimize your contract to its fullest potential.

Today, we will focus on how to shop generics when you are overly compliant in a GCR range. Often, as the month progresses, you might find yourself trending in the middle of a GCR range. At that point, it’s time to decide whether you should work to achieve the highest rebate tier or start leaking a bit of generics to recognize the secondary savings potential while still remaining compliant. Today, every dollar matters, and that is why IPC provides this powerful tool to help you optimize your contract.

Understanding GCR and the factors that influence it is the first step in optimizing your contract. GCR, or generic compliance ratio, is simply your total generic spend (including One Stop Pharmacy Select and all other multi-source generics) divided by your total RX spend, which is the sum of all brands and generics at McKesson. For example, if you bought $20 of generics and $80 of brand, your GCR would be $20 (total generic spend) divided by $100 (total of brand spend plus total of generic spend), resulting in a GCR of 20%. For the IPC agreement, the highest GCR tier is 17%. Once you reach 17%, there are no additional rebate tiers to benefit from, allowing you to shop additional generics from your IPC warehouse at significant savings.

This video will focus on the generic dollars available to outsource while staying in the current tier. Understanding this number can reveal lost potential profit and help you apply the right strategies to manage it closer to the bottom of a particular GCR range. For example, consider $2,255 as the amount of generic dollars available to outsource at a sample pharmacy. Your number may vary, but as you progress through the month, this figure becomes increasingly important.

There are two ways to interpret this number. First, as a retrospective look at how many generic dollars you could have shifted from McKesson to remain in the same GCR tier while still receiving the same rebate percentages on your total purchases. In our example, if $2,255 had been shifted to a secondary option like your IPC warehouse, it could have resulted in approximately $900 in additional savings for your bottom line. Being mindful of this number can help you decide when to shop a few items away to IPC. If you’re new to this, the IPC team would be glad to show you how to utilize your member-owned warehouse.

Another way to interpret this number is by calculating how much in brand dollars you can spend without purchasing additional generics from your primary wholesaler, while still remaining compliant with your current GCR tier. To find this number, divide the generic dollars available by the lowest percentage in your current tier. Then, subtract the generic dollars available to outsource. For instance, $2,255 divided by 0.17 (or 17%) equals $13,264. Subtracting $2,255 from this amount gives you $11,010. This means you could spend $11,010 in brand purchases without buying any additional generics from your primary wholesaler and still stay compliant.

It’s important to remember that there is a one-day lag in the data. So, understanding what you did yesterday and how it affects today’s orders is crucial for the complete picture. Squeezing every possible dollar out of your IPC supply agreement can significantly benefit your store, especially when dealing with underwater reimbursement. The dollars available through your IPC warehouse can help boost your profits.

IPC and Rx Assassins are committed to making your store as profitable as possible. As a member of the cooperative, the warehouse is designed to benefit you, with profits passed back to you, the member. Please don’t hesitate to reach out to ipcrx.com or [email protected] to find out how to add profit to your business. We’d be glad to spend 15 minutes with you individually to show you how to maximize this tool. Thank you.