Improving pharmacy profitability
The impact of expected Category M clawbacks, plus the inevitable increase in a myriad of other financial pressures in a recessionary environment is likely to lead to the further eroding profit margins this year particularly for independent pharmacies.With all the day-to-day operational pressures of running a pharmacy, many independent owners will not readily find the time to develop a plan to combat eroding margins on their own, yet without such a plan further margin erosion is inevitable.
Pharmacy Consulting Ltd have worked with independent pharmacists to successfully develop a wide-ranging profit improvement action plan, based upon their individual business after a pharmacy visit, to improve the margins that will be achieved.
For those who may also be beginning to think about selling their pharmacy or retiring, this subject is particularly important as in the current market conditions pharmacy buyers will be much more likely to value a pharmacy based upon a multiple of net profit rather than upon a multiple of turnover. So getting the net margin as high as possible will maximise the pharmacy sale price.