RE:I want to know the name of long term care pharmacyIt seems to be hard to find a " pure play" company that does ; I define pure play as a company that supplies one service only
. All the long term pharmacies I can find that seem to be successful are part of larger companies like Amerisource Bergen and CVS Health .
The following is from asearch about McKesson Corp.
https://join.healthmart.com/wp-content/uploads/2015/07/McKesson_Becoming-a-Long-Term-Care-Pharmacy.pdf
Profile of an Independent LTC PharmacyHere are some important facts about independent LTC pharmacies from MHA’s 2014 and 2015 studies:8- The average independent LTC pharmacy owned or operated one pharmacy in one state and had revenue of less than $5 million.- The average independent LTC pharmacy dispenses 12,369 prescriptions per month.- On average, residents receive 12 prescriptions per month (3 branded and 9 generic). The number of prescriptions per resident and the percentage that are generic have grown. However, 71% of total drug spend is on branded products and only 29% is on generics.- With 12,369 prescriptions per month and 12 prescriptions per resident, this means the average LTC pharmacy is serving about 1,030 residents per month.- The average independent LTC pharmacy is serving 10 to 13 facilities, with 80 to 100 residents per facility.- On average, residents used three to five OTC items per month.- Eighty-two percent experience 8 or more inventory turns per year, 60% have more than 12 turns per year and 38% have more than 15 turns per year. The average cost of goods sold (COGS) is between 61% and 70%, meaning that gross margins are in the 30–40% range, with variation based on geography and the types of facilities served.- The average independent LTC pharmacy employed between 9 and 40 FTEs, and for 65% of survey respondents, payroll comprised from 10% to 20% of sales.- Delivery costs average 2–3% of gross sales and bad debt write-offs average 1–2% of sales.In summary, the long-term care market is substantial and is projected to continue growing for years to come. Because LTC facilities must provide drugs to patients, a relationship with a long-term care pharmacy is essential. For pharmacies to work with skilled nursing facilities, specific services are required. Yet with the average facility housing 100 residents, with each resident taking approximately 12 prescriptions per day, and with gross margins of 30% or even more, LTC pharmacy can represent a significant, attractive and growing opportunity
Some of those figures would not apply to CareRx as it is a national player but it does underline economies of scale are important and the company should attract the large the attention of a larger company.
GLTA