Meeting Future Demand: Strategies for Growing a Long-Term Care Pharmacy

^{By: Brenda Axe, vice president, Long-Term Care Segment, AmerisourceBergen}

The long-term care (LTC) industry is on the precipice of significant change. The Baby Boom generation is anticipated to drive a 50% increase in the number of older Americans (ages 65+) requiring long-term care, reaching an estimated 1.9 million individuals over the next 10 years.¹ This growth in demand presents an opportunity for LTC pharmacies to assume a larger role in patient care. In order to keep pace with the industry, however, pharmacy owners should consider the steps they can take to position the business for future growth, which include streamlining foundational protocols, pursuing training for staff members, developing business plans, and enhancing their products and services.

Establish and Secure the Fundamentals

As a first step, LTC pharmacies seeking to grow must ensure they have established a solid foundation that facilitates productivity and effective business operations. It’s important for a pharmacy to verify that internal processes for receiving and filling orders adhere to a streamlined protocol that leverages the right balance of technology and human intervention to fit their needs. Automation systems also drive efficiency, but they can be costly, so pharmacies should identify the system(s) that will deliver the largest return on investment and make the most sense based on the customers and patient populations they serve. Radiofrequency identification (RFID) automation, for example, is a great tool to simplify inventory management, while robotics systems for packaging and dispensing medications help reduce manual tasks and ensure accuracy.

Pharmacies must also have educated staff members that understand the nuances of serving an LTC customer base and are positioned to provide exceptional customer service. Dedicated training programs, coupled with periodic check-ins, help ensure staff members are prepared to take ownership of administrative tasks and daily responsibilities. It is also beneficial to develop internal handbooks and written resources, so any future hires can be seamlessly onboarded in accordance with the established protocols.

Finally, comprehensive business plans are an essential asset for pharmacies seeking to expand. A thoughtful strategy that outlines goals and tactics for expansion creates leverage with lenders, which enables a pharmacy to obtain the financial support needed to grow. The funding secured can be used to strengthen the business with additional or upgraded automation systems, staff training and new hires, which will set the foundation for growth.

Prioritize Marketing Efforts

The demand increase facing the segment will also continue to generate significant competition from large chains and retail pharmacies looking to expand into LTC.  As such, LTC pharmacies must reprioritize their marketing strategy to effectively secure new business. This may be challenging for LTC pharmacy owners who have not historically needed to market themselves externally to the same degree as a retail pharmacy, but LTC pharmacies can use their unique position and relationships to their advantage. Word of mouth and testimonials are highly influential in the LTC setting, meaning pharmacies should leverage existing connections with facilities to promote their pharmacy to potential customers. It is also valuable to have a presence on the area’s State Board of Pharmacy, which provides continued opportunities for pharmacists to network with industry peers and raise their profile among regional decision-makers. An interactive website and social media channels are also effective marketing tools as they can showcase the breadth and quality of a pharmacy’s services, as well as case studies and positive customer reviews.

Provide Added Value

To attract new customers, pharmacies must differentiate themselves from the competition by providing added value. This might include expanding the breadth of services offered or carrying several types of packaging options to serve wider and more diverse patient populations. High-quality and personalized customer service can also act as a significant value driver. Efforts to accommodate last-minute orders and provide flexible delivery options enable pharmacies to build stronger relationships with the caregivers at the facilities they serve. In turn, caregivers are more inclined to advocate for the pharmacy partners they’ve enjoyed working with when transitioning their patients to a new facility or organization, which can lead to new business opportunities.

As the need for LTC services continues to increase in the years ahead, LTC pharmacies are well-positioned to capitalize on the demand and expand their customer bases. Pharmacies with a commitment to efficient operations, diverse product offerings and best-in-class customer service will provide the most value for facilities, which opens the door to secure new contracts and increase their bottom line.  

Brenda Axe is Vice President of the Long-Term Care segment at AmerisourceBergen, a leading distribution and pharmaceutical services company. In this role, Axe leads customer sales teams, drives the implementation of go-to-market strategies, and helps develop solutions and partnerships that provide value in the LTC marketplace.

Reference:

1. Population Reference Bureau. Fact Sheet: Aging in the United States. 2019.