At a Glance
Pennsylvania-based Value Drug Company, a 600-member pharmacy cooperative, enlisted the help of EnlivenHealth’s MyDataMart pharmacy analytics to help counter shrinking reimbursements and narrow profit margins. After a 90-day pilot period in a handful of stores, the increased profits and significant return on investment prompted Value Drug Company to launch a larger scale rollout to more stores.
Background
Headquartered in Pennsylvania, Value Drug Company is a pharmacy wholesaler and cooperative consisting of more than 600 independent pharmacies across the country. Being a co-op of independent pharmacies, its members faced the same problems many community pharmacies do — shrinking reimbursements, narrow profit margins, and zero time to analyze pharmacy data and make better business decisions.
In May 2023, the cooperative started a pilot program with EnlivenHealth MyDataMart at five Pennsylvania-based pharmacy locations. At the end of 90 days, the results spoke for themselves.
By acting on insights from pharmacy analytics, the pilot pharmacies saw an average profit increase of $3,795.75 over the pilot period, with the top pharmacy gaining nearly $14,000 in profits. All stores in the pilot program saw an increase in prescription count, sales, and gross profit margins. In some cases, the return on investment was nearly 15 to 1. That’s a lot of money to reinvest in the business.
Since starting MyDataMart, I have seen a marked improvement in revenue per script. We even identified a prescription selling at a loss that, when we changed the DAW, revenue went up by $1,000.
Karen Veith, RPh, Pharmacist & Pharmacy Manager, Primary Care Pharmacy
Challenges
Declining Reimbursements & Rising PBM Fees: Like many community pharmacies, Value Drug Company’s pharmacies were operating with razor-thin margins thanks to low reimbursement rates and increased administrative fees from pharmacy benefit managers.
Little Time for Manual Data Analysis: The hustle and bustle of day-to-day pharmacy operations doesn’t leave much time for analyzing data and making informed business decisions based on those insights.
Difficulty Benchmarking Performance Across Multiple Locations: With multiple stores generating data, the leaders at Value Drug Company had a difficult time aggregating that data and creating benchmarks for its member pharmacies.
Solution: MyDataMart by EnlivenHealth
MyDataMart by EnlivenHealth provides pharmacies with the power to drive more revenue, improve patient health outcomes, and measure pharmacy performance through the power of pharmacy analytics and insights. Compatible with most pharmacy management systems, MyDataMart automatically collects, aggregates and analyzes pharmacy data, presenting profit and adherence opportunities to users with customizable, easy-to-use dashboards.
In addition to getting a comprehensive business view of their member pharmacies, Value Drug Company also encouraged their stores to use MyDataMart’s sold-at-a-loss reporting and the built-in opportunity queue. Sold-at-a-loss reporting helps pharmacies identify medication reversal and rebill opportunities, while the opportunity queue finds red flags like missing refills, missing patients, and more.
Results
$3,800+ Average Profit Gain: Over the course of the 90-day pilot period, participating stores saw an average profit gain of $3,795.75. The top-performing store was able to increase profit by nearly $14,000.
Nearly 60 Fills Gained Per Month: MyDataMart’s opportunity queue impacted Value Drug Company’s medication adherence metrics as well as its revenue. On average, participating pharmacies were able to add 59 fills per month, meaning more patients were staying adherent to their medication plans and staying current on their refills.
Significant Return on Investment: All stores in the pilot program saw an increase in prescription count, sales, and gross profit margins. In some cases, the return-on-investment (ROI) was as much as 15-to-1.
For More Information
To learn more about how you can boost pharmacy profits and adherence scores through the power of data insights, reach out to EnlivenHealth today!