The Cost of Pharmacy Computer Systems and Software
Evaluating pharmacy software systems and figuring out how much to expect in overall costs can be complicated. Pharmacy systems vendors price differently, and virtually no two package their systems the same way. Pharmacy software systems have initial startup fees, monthly support fees, and transactional fees for switching and electronic prescribing. Some even offer money back through revenue-sharing programs.
Let’s take a look at the types of fees you can expect.
Startup Pharmacy Software Costs
You can expect to pay upfront fees when opening a new pharmacy or converting your pharmacy system to another vendor. These are one-time charges and often include a software license for pharmacy software and point-of-sale software, training costs, any hardware or pharmacy computer system you may be purchasing, and pharmacy software conversion costs (if you have an existing system you need to switch over from). These costs vary from vendor to vendor and are often negotiable depending on contract lengths, startup store discounts, and prescription volume for existing independent pharmacies.
For a new startup pharmacy, you can expect a range of $2,500 and up depending on what software and hardware you need. Pharmacies looking to convert from their existing software may be eligible to pay next to nothing depending on volume and length of contract. When converting, assuming you can use existing hardware from your current pharmacy computer system (in most cases you can), you can expect to look at quotes including the conversion cost to migrate your data to the new pharmacy system, the cost of on-site training with their staff, and potentially a cost for the new pharmacy software. These quotes will vary by vendor and the deals they are offering.
Datascan is known to offer deep discounts to pharmacies looking to convert away from their current pharmacy software vendor.
Monthly Fees
These are the base fees you can expect to pay monthly to cover the software maintenance and support both during and after business hours. These will also include the new features offered in many systems that are constantly being updated. The ‘maintenance’ factor has to do with constant changes within our industry. Pharmacy software systems are constantly in need of updating whether it be to keep up with the newest NCPDP standards set for processing claims, changes with the electronic prescribing standards, or even changes brought about by ASAP for the transmission of controlled substance prescriptions to your state PMP.
Add-On Costs for Pharmacy Software
Some vendors include features at no additional cost, while some will charge as add-ons for features such as document management, delivery software, patient mobile applications, controlled substance reporting, backup services, and more. It is important to compare the true side-by-side costs figuring out what some vendors are including in their base fees vs what others are charging for. For example, Datascan does not charge for our mobile application for your patients, while some vendors can charge upwards of $100 or more a month for theirs!
Features you want may often not be included in standard pharmacy software packages and can very quickly add up. Datascan’s pharmacy software package is inclusively priced and includes features like document management, a patient mobile app, and controlled substance reporting for free. These features may significantly enhance the workflow of your pharmacy at no extra cost.
Transactional Fees
Transactional fees are variable pharmacy software costs that will change on a monthly basis. These are fees for switching, electronic prescribing, and text messaging, and all depend on volume. The pharmacy systems vendors are paying for these services, and therefore the pharmacy itself must pay for them as well.
Variable Fees
Variable fees include ‘switching’ and electronic prescribing transactions. Switching occurs when you send an insurance claim for a prescription for payment to the PBM or insurer. The ‘switch’ is what routes the claim. Pharmacy management software vendors are charged for this routing, and therefore, pharmacies are as well.
Electronic prescribing is when a physician sends a pharmacy the prescription electronically directly into the pharmacy’s computer system (which is mandated in many states as the push to do away with paper prescription pads grows). Many refer to these transactions as “Surescripts” because that is the primary vendor that routes the Erx’s. Surescripts charges for these transactions, therefore, pharmacies pay for them as well. Both of these are variable because it all depends on the pharmacy’s volume. The greater the volume, the higher the cost of your pharmacy software.
Variations by System
The amount of variable fees is often different among each pharmacy software system vendor, but typically falls within a similar range. One vendor, PioneerRX, charges an RX completion fee, which is a charge for every prescription picked up, cash or third party, in your pharmacy. This is not a typical fee you’d find from most other pharmacy software vendors. Datascan’s pharmacy software system is among the best-priced when it comes to both base fees and transactional fees.
Revenue Sharing
The best pharmacy software vendors offer a variety of revenue share programs designed to help keep your monthly pharmacy software costs down. Many vendors subscribe their clients to programs, but do not share their revenue streams. Data sharing programs such as IQVIA pay for independently owned retail pharmacies to submit HIPAA-compliant, deidentified prescribing data. Other revenue share programs like cash RX rebate programs, e-vouchers, and Carepoints all offer incentives for you and help reduce your monthly software charges.
Final Thoughts
As a pharmacy owner, you can expect to see a breakdown of different fees and costs for your pharmacy management software and computer system. There are one-time upfront fees for software licensing and training, and then there are monthly fees for software maintenance and support as well as transactional fees for switching and electronic prescribing.
Costs will vary depending on the vendor you choose, but you should never pay more for less. Datascan is the overall best-priced retail pharmacy software system on the market.
Get a Custom Cost Quote for Winpharm by Datascan
For a detailed price quote of Datascan Pharmacy Software, give us a call at (877) 222-RXRX, or contact us online. We’ll schedule a free demo and put together a software package that fits your needs and budget.
Kevin Minassian is the President of Datascan Software. Under his leadership, the company rapidly expanded to provide pharmacy management software on a national level. Over the last 15+ years, he has ensured that Datascan has continuously evolved to offer innovative solutions for independent pharmacies while still offering world-class customer support. He is passionate about helping independent pharmacies to remain competitive, achieve success, and offer the very best service to their communities.
