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32 PHARMACY BUSINESS MODELS FROM PAGE 31 vaccination protocols, and when a COVID vaccine is available, pharmacy will be on the frontline. In addition, written into the 7CPA are the recommendations from the Royal Commission into Aged Care, which are likely to offer opportunities for medication management or in-home care, with pharmacy also playing a frontline in role in those. There’s money on the table The 7CPA has also ensured the continuation of dose administration aids and MedsChecks, with the stated goal of continuing to look to the programs that are going to have proven health outcomes. Despite this opportunity, during the five years of the 6CPA, it’s believed most pharmacies have been receiving less than 50 per cent of their available revenue. “There’s more guaranteed money available for services in the latest community agreement than there was in the previous one,” Mr Pattinson said. To assist pharmacies in maximising the services opportunity, Guild members can access the Opportunity Analysis tool, which is designed to provide a customised report using the pharmacy’s own data to identify income opportunities linked to CPA-funded service programs. “Having used the tool, there are coaches to support pharmacies based on the findings,” Mr Pattinson said. “For example, if you’re not doing any MedsChecks, they’ll ask why not. They’ll help you know how it’s done, share the process and a protocol and explain how to target appropriate patient segments. “Understanding your opportunity in 7CPA is critical and would be my first step. It lets me understand through a ScriptMAP report, or similar, what my dispensary opportunity looks like and I’ll have a good idea what the gross margin dollars are going to be from there. “Then, through a 7CPA Opportunity Analysis report, I’ll understand what my service opportunity might look like, too. “Together, those internal factors give a guide to my potential investment pool and I can then look at the external factors around customer and patient behavioural change.” Those customer and behavioural changes include the introduction of e-scripts and e-health, which will create an opportunity for pharmacies to optimise both their operation and workflows. In doing so, they can gain additional time to be used engaging with patients in conversations about better health outcomes. Without a plan and the clear intent to find those time-saving economies, the opportunity will be missed and your team will likely carry on in their familiar routine. Thinking outside the box When thinking about how to develop their pharmacy, Mr Pattinson urges pharmacists to continually ask: what does service and a holistic solution mean for my patients? “The disruption of COVID is going to go for another year or two, so, over this next phase of the business cycle, pharmacists will need to make sure we’re really marrying convenience and healthcare outcomes,” he said. “Sometimes this means thinking outside the box, but if you have that central ethos of ‘what can we do to improve the health of our patients?’, you’ll find there are countless services pharmacies can offer to fill the void.” CASE STUDY Finding a way through The independently owned Forestville Pharmacy on Sydney’s north shore has two discount pharmacies nearby, so competing on price was never an option. Instead, owners Peter and Isabella Hawthorne focused on differentiation through service in their business model. “We knew professional services was something we wanted to pursue,” Ms Hawthorne said. “We were vaccinating pharmacists, we wanted to be a source of information to our community, and I wanted to develop my interest in wound care, so it was clear we needed a proper space to offer those services professionally. “We have a long, narrow store of 170 square feet \\\\\\\\\\\\\\\[15.8sqm\\\\\\\\\\\\\\\] and finding a way to add a clinic room was a challenge. “At the time, we’d been here over 20 years, so we knew our market and wanted to help people. We saw fee-for- service things happening, recognised potential growth in that area, and decided to go with our heart and find a way to add a room. “We played around with some different designs as it was important to make effective use of our limited space, and eventually decided to go with a walk-through model that works really well. “By having vinyl concertina doors at both ends, we were able to meet the space requirements imposed for pharmacy clinic rooms. That design means it doesn’t interfere with customers or workflow when not in use, although we’re still able to walk around the space when it’s in use. Ms Hawthorne says there was no loss of retail shelf space because the new structure merely moved the side wall into the middle of the store, so the shelving simply moved with it, meaning there was no downside at all. “When you look at the cost/benefit analysis, it has worked really well,” she said. “It’s used every day and when it’s flu vaccination season we often wish we had two rooms. “Perhaps more importantly, the clinic room allows us to do what we love: connect with our patients at a far deeper level.” For the Hawthornes, the addition of a clinic room simply felt right. Moving to a professional services model enabled them to be fully independent and after more than 22 years in pharmacy they still thoroughly enjoy what they do. Perhaps my mother was onto something when she said ‘it’s never wrong to do the right thing’. The trick is using the available tools and resources to know what’s right for you. RETAIL PHARMACY • AUG 2020