Surviving Reimbursements

I mentioned in my first blog that it was a surprise to me that some owners of independent pharmacies didn’t know what a GPO was. I think it’s worth explaining – literally ($).

GPO stands for a Group Purchasing Organization. There are all kinds of GPOs. Some represent groups that purchase hospital supplies, building and maintenance supplies, and medication, to name a few. Some do all of the aforementioned, and others specialize. GPOs use the buying power of their membership to negotiate with wholesalers for the bulk purchase of merchandise. It’s members then purchase at a discounted price directly from the wholesale agent. The GPO collects a 3% fee (governed by law) of the acquisition price. The customer gets the negotiated price for the goods, and everyone is happy.

The question is, which differentiates one GPO from another. Think about it this way. If a GPO negotiates the price of a drug to be $100/per, the GPO’s fee is $3. If the GPO negotiates the price of a drug to be $150/per, the GPO’s fee is $4.50.

Buyers beware. Just because a company says they are a GPO doesn’t mean they are negotiating the best price for your business. They may be negotiating the best price for their business. Shop around. Look at prices. Then we’ll meet you on DermSource.com.

Yuriy Davydov, Pharm D.
Founder & CEO
DermSource.com

Your Dermatology GPO.

When we started DermSource we decided we weren’t going to sit at our desks and live in a virtual world. We want to meet, get to know, and interact with our members – face to face.

As you know from my first blog, it began with the annual NCPA show in Boston at the Hynes. That was great. We met pharmacists from all over the country, a few from overseas, and lots of students. LOTS of students! We then visited Pennsylvania, Kentucky, and New Jersey Pharmacists Associations.

By mid-November, we understood quite a bit. That all independent pharmacists are faced with the same challenges and interested in outcomes about the same issues – What is the future status of mergers and acquisitions of PBMs and insurance companies? How will that affect my pharmacy? Fair pharmacy reimbursement for Medicaid programs? Etc. etc.

The question is “Where do we go from here?” The answer is we go on and we look for innovative and creative ways to do business. After all, this is America and Americans evolve with the times, regardless of roadblocks and change. Let’s go back to the shows – there were lots and lots of students training to become pharmacists. Some of them will be entrepreneurs and open their own pharmacies. Let’s insure that they have a future. Join us in thinking outside the box.

#TruthinPricing

Yuriy Davydov, Pharm D.
Founder & CEO
DermSource.com

Your Dermatology GPO.

Recap of NCPA 2018 – October 7-9 – Boston Hynes Convention Center

While exhibiting at the NCPA 2018 Annual Convention this year we observed a change in the air. A certain tension among Pharmacists representing independent pharmacies who were listening at a heightened level of interest to new opportunities and alternative ways to do business. “Of course, that’s what they’re there for,” you could say. But we all know that the current climate of mergers and acquisitions and the future of the independent pharmacy has generated a buzz across all communication lines. And we all know it is time to think outside the box!

While I have attended this event in the past as a guest, this year we exhibited. We introduced a new and innovative purchasing platform designed to help the independent pharmacy stay in business. DermSource, the dermatology GPO or buying group, provides independent pharmacies with a purchasing platform that guarantees a fair and transparent deal. A unique concept in this everchanging environment. But we’re not alone.

Organizations like PUTT (Pharmacists United for Truth and Transparency), PSSNY (Pharmacists Society of the State of NY), and NCPA (National Community Pharmacists Association) are addressing industry standards and lobbying for positive change. Jonathan Marques, Fourth V.P. for the NCPA says “You need to provide services and niches – find innovative products like DermSource has.” DermSource is offering pharmacies free membership to a purchasing platform that can increase their bottom line with significant discounts on dermatology products. I spoke to over 200 pharmacists at the convention, and I was astonished to learn that some of the pharmacists don’t even know what a GPO (group purchasing organization) is.

Bahrum Siddiqui, the operations manager for DermSource says, “As our membership grows so does our power to purchase. We intend to impact pharmacies nationwide and alter the playing field for the mom and pop pharmacy struggling to get by.” DermSource only deals with VAWD accredited/pending accreditation wholesalers and distributors and demonstrates their commitment by limiting profitability to 3% above the acquisition price.

DermSource opens for business on November 26th – Cyber Monday. Independent pharmacies are invited to sign-up early so you can start purchasing when we open. 

DermSource and its members stand together fighting price hikes and marginalization of the middle market pharmacy, to achieve improved profitability and the best possible healthcare outcomes for its customers.

DermSource will keep you in business!

#TruthinPricing

Yuriy Davydov, Pharm D.
Founder & CEO
DermSource, Inc.