% | $
Quotes you view appear here for quick access.

Валгрин Ко. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • Philrunner Philrunner Nov 1, 2001 11:59 AM Flag

    WAG and Legal Problems

    First of all the job of a CEO is to increase shareholder value period. As far as the convenience, your under estimating the power of the PBM's/insurance to force people via costs to go to the pharmacy that is in the network. People are more resistant to changing doctors but do because it is too expensive for them not to use their network doctors. My brother, after changing employers, now drives 50 miles to his network doctor. Why? Because its too expensive for him to go to a out of network doctor. The PBM's will keep lowering RX margins until there is a push back. As long as you have grocery stores and mass merchandisers who take any fee the margins will continue to erode and people will be forced to go to preferred providors. The fact that the free standing store is a high cost providor of RX and HBA's is quite interesting. Economics has and will rule pharmacy. No industry is immune to the economics of lowest cost providors killing off higher cost providors of products and services. While there is some merit to your comments about convenience, time will tell as the market of providors begins to stratify and providors drop out of programs. When RXHUB gets going what do you think a patient will say when the docotor says "your insurance says you can get a 100 day supply of meds for one copay and save $20 via mail order or a 30 day supply at the local pharmacy. Do you want the prescription sent to the local pharmacy? The chains will find out what the independent found out, customer loyalty is worth about a dime. More and more companies are requiring mail order services. Yes your correct the chains survive because of the total growth of prescritpions. However, as soon as the central fills and mail order deals really get going, and the public gets use to the new way to get meds the erosion of the market will exceed the growth. That's when the chains will realize that pushing the pharmacists value to zero and keeping them away from the public as much as possible will come home to stay. The chains banked on production increases not enhancement of services provided by pharmacists that are charged for. Fast food drive ups hurt the front end sales as now a greater portion of the revenue in a chain is from the lower and lower margin RX business. The truth of the RX market is hidden in the growth of prescritpion volume. Were it not for growth in total market the chain CEO's would all be crying. The next few years as technology gets going will be very interesting. The fact that expansion of stores was cut in a growth industry is interesting to say the least. Especially since WAG says the shortage of RPH's hasn't hurt them. Incidentally do you think the CEO's will ever figure out that if they would improve the work environment, close the pharmacy a few holidays maybe some pharmacists who left might come back and the rate of those leaving will slow. Do you think they will figure out that the 24 hour stuff is taking an important resource, pharmacists, out of the high productivity times, days and putting more work load on the day shifts. What would happen if the 24 hours stuff went away and all the night phrmacists worked days to reduce the workload of all pharmacists? Think a few more pharmacists would come back to pharmacy?
    Opinions only what do I know about business