Expense control -- plus an increase in gross profit margins for non- prescription merchandise -- more than offset a third quarter decline in pharmacy gross profit margins, which are under continued pressure from the low reimbursement rates demanded by managed care.
``We've made solid strides in recent months toward curbing the decline in pharmacy margins,'' says Jorndt. ``We have successfully renegotiated reimbursement rates with targeted major third party plans and dropped others due to unacceptable terms. It is not easy to walk away from business, but we will do so when necessary. We are aggressive in our dealings with third parties, which now account for 80 percent of all prescription sales.''
The future of WAG is more stores, but the question will always be of trying to improve on Pharmacy profit margins, the back of the store. I think that pharmacists need a union.
Trust me, you do need a union. Each Pharmacist costs the company of Walgreens anywhere from 100,000-150,000 in salary and benefits. If you want to maximize profits in the back of the store, you automate the pharmacy. Do the math, if you lay off one pharmacist per each store, how much do you save? That's 2500 X 100,000
Jorndt is for real, and I'm sure he looks at these numbers. Any intelligent person walking into the pharmacies of CVS, Walgreen's, or Eckerd's can see what to do to maximize profits.
Unionize! The pharmacy companies hope that people coming into the store will pick up more than just their script. Higher margins in the front of the store!
Growth in Walgreen's is more stores for now, but how long can they continue to produce record sales, meeting expectations, without talks of maximizing gains through layoffs?
Pharmacists are okay for now, but the future? Prepare for the worst of times now, unionize. How many pharmacists at Walgreen's work without a contract?
How can you negotiate a severance package without a contract?
Hmm...your rights are one hour of lunch and 2 thirty minute breaks, am and pm. How many pharmacists actually take these breaks?
I own tons of Walgreen's stock, but am not a pharmacist, nor an employee. I've done my research on this company which beats the S & P and have gone to Walgreen's in three different states to get an idea...
I guess I have a human side, which is the post...automated pharmacies are the future. At a time when the baby boomers will shop at Walgreen's, the management may be raking in obscene profits for themselves with their automated pharmacies.
I already think Walgreens has a Pharmacists union at at least some of it�s stores. I also think they are reducing costs in the pharmacy by using non-pharmacist helpers. I think, if I remember correctly, it was a key point in the last contract negotiation.
I'm not sure I understand your point. I would be willing to believe if you polled all of the pharmacists on their opinion of technology they would be in favor of it. The computer systems enable them to streamline the paperwork part of their job and focus on dispensing pills. As for the automation of the pharmacy, I just can't see that happening. There is too much risk in possibly doling out the wrong medication, etc. However, if it does come to that, then so be it. It's nothing that a union could solve. Unions can't stop the technology steamroller, all they can do is employ BS tactics to try to hang on to their antiquated methods in the face of changing times. Look at these GM losers trying to protect their cushy, overpaid way of life in the face of a different competitive environment. Frankly, I hope they all get tossed out on their ass, although I know that won't happen. I saw a news report about the strike this weekend, and I'm telling you about 95% of the people manning that picket line had to be at least 50 pounds overweight. Fat, disgusting slobs.
Please do not continue to stereotype overweight people a disgusting or slobish. Overweight people have enough trouble living with their weight in a society that rarely accepts deviations from what is portrayed as the norm. It may surprise you to know there is research that shows that being overweight has more to do with genetics than many people think. P.S. Talk about the GM strike on the GM thread.