Unlocking Pharmacy Growth: Strategies for Diversification and Success

In today’s rapidly evolving healthcare landscape, your pharmacy faces unprecedented challenges and opportunities. To help you navigate these changes and grow your business, we started by creating a series of blogs under the banner “Marketing My Pharmacy“. This series focuses on patient acquisition strategies, covering topics such as social media, Marketing for Low Volume Stores, and Marketing in and around your store, with more to come.

Today we are shifting gears towards growth strategies and the importance of looking beyond traditional prescription filling and expanding your services and products to include Point of Care Testing, Digital Health, Immunizations, and over-the-counter (OTC) product solutions like CBD, vitamins, and hearing aids. By embracing these strategies, you can enhance patient care, increase revenue, build stronger community ties and become a true healthcare destination.

The traditional model of prescription filling, while vital, is no longer sufficient to sustain growth and ensure long-term viability. Pharmacy Benefit Managers (PBMs) have increasingly squeezed margins, making it imperative for independent pharmacies to diversify their offerings. By expanding your growth strategies into additional services such as Point of Care Testing, Digital Health, Immunizations, and over the counter (OTC) solutions your pharmacy can not only survive but future-ready.

As an independent pharmacy owner, you recognize the urgency of this shift. The healthcare industry is moving towards a more integrated and patient-centered approach, and your pharmacy is uniquely positioned to play a crucial role. By expanding your growth strategies, you can enhance patient care, increase revenue streams, and build stronger community ties.

Point of Care Testing (POCT) allows pharmacies to offer immediate diagnostic tests for conditions such as strep throat, flu, and COVID-19. This service not only provides convenience for patients but also positions the pharmacy as a healthcare destination. According to a study by MarketsandMarkets, the POCT market is expected to reach $46.7 billion by 2024. Implementing POCT can significantly boost a pharmacy’s revenue while improving patient outcomes.

What does this mean for your store? Point of Care testing can be a significant revenue driver. Let’s assume your pharmacy conducts 500 tests per year, at an average price of $50/test this can generate as much as $25,000 in cash revenue to your pharmacy. IPC is here to help you implement a program that will help grow your business.

Digital health solutions, including telehealth services and mobile health apps, are transforming the way healthcare is delivered. Pharmacies can leverage these technologies to offer virtual consultations, medication management, and chronic disease monitoring. The global digital health market is projected to reach $509.2 billion by 2025. By integrating digital health services, pharmacies can stay ahead of the curve and meet the growing demand for accessible healthcare.

Today, pharmacies have the power to go beyond dispensing prescriptions—they can become dynamic centers for virtual care, chronic condition monitoring, and preventative health services. Amid rising healthcare costs and a surge of uninsured and underinsured individuals, the demand for accessible, affordable healthcare solutions is critical. Recent statistics indicate that over 1.3 billion people will use digital health services globally in 2024; this includes people in your community. Telemedicine is seeing particularly high adoption following the COVID-19 pandemic. Read the full blog article on how iCare+ is changing the landscape for pharmacy.

Embracing the essence of future-readying independent pharmacy, through IPC Digital Health, we are reshaping the landscape of healthcare accessibility, particularly for non-insured or underserved communities in need of everyday care and non-emergency services. By integrating Digital Health in your independent pharmacy, you can provide patients with access to physicians and ensure the long-term viability and success of your pharmacy.

Immunizations are a cornerstone of preventive healthcare. By offering a wide range of vaccines, pharmacies can protect their communities from preventable diseases while generating additional revenue. The immunization market is expected to grow to $93.8 billion by 2026. Pharmacies that expand their immunization services can play a pivotal role in public health and enhance their financial stability.

Pharmacy experts suggest that by offering expanded immunizations you can expect a minimum of $40,000 per year in additional revenue, with potential earnings closer to $90,000. For instance, one independent pharmacy was able to administer 1,800 vaccines in a single year, resulting in $40,000 in pure profit. Another averaged over 700 immunizations in its second year, generating more than $16,000 in profit. These examples highlight the significant financial benefits immunization services can bring to your pharmacy. With the right patient education and engagement strategy, you can realize these benefits and expand your revenue through the implementation of an immunization program.

Starting an immunization program in your pharmacy can be a seamless process with the support of IPC. We offer comprehensive guidance and resources to help you navigate the setup, from initial planning to implementation. IPC can help with immunizer status, education to provider enrollment, and infrastructure readiness and more.

Additionally, IPC connects you with preferred vendors, allowing you to purchase necessary supplies directly and at competitive prices. For more details on accessing these resources and making purchases, visit our preferred vendors page.

Expanding OTC offerings to include products like CBD, vitamins, and hearing aids can cater to a broader customer base. The global CBD market alone is projected to reach $13.4 billion by 2028. By stocking a diverse range of OTC products, pharmacies can meet the varied needs of their customers and increase sales.

Expanding OTC offerings can significantly boost sales. According to data from NCPA, the average independent pharmacy generates around 20% of total revenue from OTC products. This translates to around $680,000 in annual OTC sales based on average annual revenue of $3.4 million. Let’s assume your pharmacy averages $400,000 in OTC sales and can increase sales by 10%, adding products like CBD, vitamins or hearing aids.

As the backbone of your community, expanding services can strengthen these ties and make you an indispensable healthcare hub. Offering personalized care, health education, and community outreach programs fosters loyalty and trust among your patients.

1. Assess Community Needs: Conduct surveys and engage with your community to understand their healthcare needs and preferences.
2. Invest in Training: Ensure your staff is well-trained to provide new services and handle advanced technologies.
3. Collaborate with Healthcare Providers: Build partnerships with local healthcare providers to offer integrated care.
4. Market Your Services: Use social media, local advertising, and in-store promotions to raise awareness about your new offerings.
5. Monitor and Adjust: Continuously evaluate the performance of new services and make necessary adjustments to improve outcomes.

Implementing programs like these and expanding OTC offerings is a strategic move that requires more than just adding products to your shelves. It demands time, dedication, and the right resources to truly drive revenue growth. As a pharmacy owner, we understand that your time is precious and often stretched thin. That’s why we recommend leveraging your existing resources by delegating part-time responsibilities to manage these new initiatives. By doing so, you can ensure these projects receive the attention they need to flourish and give additional responsibilities to existing staff who may be looking for a new adventure in their career development. As these programs grow and demonstrate success, you can then invest in hiring dedicated staff to manage them full-time, further enhancing their impact and your pharmacy’s overall success.

The future of independent pharmacies lies in your ability to adapt and innovate. By expanding beyond traditional prescription filling and embracing new services, you can enhance patient care, increase revenue, and secure their place in the healthcare ecosystem. By implementing these services, your pharmacy can realize an increase of $100,000+ in annual revenue. This diversification not only boosts the bottom line but also enhances patient care and strengthens your pharmacy as a community health destination. The time to act is now. Embrace the change, invest in your future, and watch your pharmacy thrive.

IPC is here to help you grow your business. If you would like additional resources, we have developed a purchasing eBook download to help build a winning purchasing strategy. This resource helps you become well-equipped to take the next step in growing your business beyond the traditional prescription filling model. This strategic foundation will support your expansion into these new services and OTC product offerings; ensuring you maximize your pharmacy’s potential. If you haven’t yet downloaded the eBook, we highly recommend you stop and visit our landing page to get your copy. This essential resource will provide you with the insights and tools needed to enhance your purchasing strategy and set the stage for successful business growth.