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Walgreen Co. Message Board

  • Yankees07 Yankees07 Jun 29, 1998 1:38 PM Flag

    The future...

    Here's an excerpt from today's news on
    WAG:

    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.

    Protect yourself...

    But, buy, buy, buy Walgreen's
    stock...

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Well, I'm from an open shop state (I live in the
      south), and they sure aren't unionizing here (don't get
      me wrong, I'm in favor of strong
      unions).

      Also, they would be the first professional group in my
      state to form a real union (the AMA is a joke, HMOs are
      eating doctors alive, and they are hampered by an "every
      man for himself" attitude).

      Anyway, I think
      you're right about the future. When pharmacies have
      drive-thrus, it's not too hard to envision the future. But you
      can't bring back the past.

      I'm glad I bought
      WAG. I figure I'll hold it for twenty years and see
      what happens.

    • Yank

      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.

 
WAG
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