Billion-Dollar PBMs Are Robbing You Blind – Is Your Pharmacy Software Vendor?

Ask yourself, could you get the technology you need, coupled with faster, better support from a pharmacy software vendor that will charge you less?

Your pharmacy is a business, one you hope to be profitable

You’re sick and tired of PBMs stealing your profits through audits, clawbacks and below-cost reimbursements.  You are frustrated and feeling taken advantage of, so why allow your vendors to overcharge you as well?  The last few years we’ve watched as pharmacy software vendors have been sold off to billion-dollar private equity firms, focused on increasing profitability for their investors.  What does this mean for you?

When was the last time you took a look at your pharmacy software bill?

It’s important to understand what you’re actually paying for. Standard pharmacy software base fees for program updates and technical support are to be expected, as are switching and electronic prescription fees — but are you overpaying for them?  Some pharmacy systems vendors are still charging as much as .18 cents per electronic Rx, aka Surescripts.   

Beyond this, what features are you being charged for that many vendors now include for free?

• Features like a patient mobile app with some pharmacy software vendors can cost you $100+ a month!  
• Many will charge you additional fees for document management, compounding modules, or LTC capabilities, or may not even offer the technology at all.
• Pharmacy management software vendors have never charged for filling cash prescriptions, but now we see Pioneer Rx charging a ‘usage fee’ of 8.6 cents per script for all Rxs sold – including cash prescriptions!  That puts your insurance-based prescriptions at 9.6 cents with them after adding back in the switching fee.

To run a successful independent pharmacy today, you must think beyond prescriptions and offer additional conveniences to your patients that do not rely on PBM reimbursements.  This includes giving your patients the convenience of a mobile app to connect to the pharmacy, text message reminders, Med sync, automatic refills, possibly offer delivery, and perhaps even offering compound medications, something the chains do not do. To offer all these conveniences, what will it cost you annually with your current pharmacy computer system? And when it’s said and done, are you truly happy with their support and product? The best pharmacy software companies on the market will include this technology and couple it with the fastest, friendliest support team.  

Datascan includes this technology at no charge in their pharmacy software. 

What about revenue-sharing programs?  Does your pharmacy systems vendor offer you discounts back on your bill for participating in these programs, or do they keep all of the revenue they are generating from your pharmacy and its data?  As reimbursements decline and building profits in your pharmacy is not as easy as it used to be, you should not be taken advantage of by your pharmacy management software vendor.

Why should I care if my pharmacy system is owned by a billion dollar private equity company?

What is the definition of a private equity firm?

“Private equity firms aim to increase the value of their portfolio companies through operational improvements, strategic changes, and financial restructuring. They eventually exit their investments by selling the company to another buyer (another private equity firm or a strategic investor) or through an initial public offering (IPO).”   Their goal is to restructure the company, which typically results in new management, cost cutting, and typically increased pricing to their customers to build a more profitable company prior to selling it off.  

How does this help you?  Does the employee turnover from our very unique industry hurt the support experience?  Do they replace pharmacy management industry professionals with those that focus on how to squeeze the last penny of profit from their customers?  

Independents supporting independents:  This means working together with a common goal

An independently owned pharmacy software vendor like Datascan understands that the key to your success is to build long-term relationships along with mutual success and growth.

We include all of these features with our standard pricing.  Datascan is proud to have only increased its customer pricing twice in the last 15 years, and both were minor increases.  When we receive discounts, we make sure to pass them on.  As an example, Datascan recently lowered our rates for all new and existing customers for electronic prescribing.

So, could you get the technology you need, coupled with faster, better support from a vendor that will charge you less? Do you have the best pharmacy software for your business? It’s definitely time to find out.