Centred Solutions Attends Pharmacy Summit North

As experts in pharmacy hub and spoke, Centred Solutions were invited to take part in the first Pharmacy Summit North last week. Hosted by Brabners at their office in Liverpool, in partnership with Pharmacy Shows, the event brought together pharmacists and suppliers to talk about the good news in pharmacy, the smart decisions, the growth stories and what’s coming next for community pharmacy. Shelley Dyer, Head of Marketing, attended the roundtable and provides a summary of what was discussed.

Last weekend, the Brabners boardroom in Liverpool hosted a focused group of sector decision makers for an afternoon of positive discussion on the future of pharmacy. The event was put on in partnership with Pharmacy Shows and facilitated by Richard Hough, partner and healthcare legal expert at Brabners. A mixed panel of pharmacists and pharmacy supplier representatives from the financial, automation, property, legal and service sectors, met to exchange ideas and thoughts on the potential direction of travel for the community pharmacy sector.

Two Tier Pharmacy Sales

The roundtable heard that over the last five or six years there had been a move away from large corporate pharmacies to independent contractors which had shaken up the market. Pharmacy property sales experts Christie and Co outlined that while the market had somewhat stabilised, compared to recent years, pharmacy sales were still strong. The type of sales, they said, fell into two tiers, the first being corporate disposals which have slowed down recently, however more opportunity is expected in this area within the next year. The second tier was seen as the more valuable with profitable pharmacies being sold, often so the existing owner could retire. The team at Christie’s said that the sale of pharmacies within the second tier had significantly strengthened in the last six months following agreement of the current funding contract. In terms of what buyers were looking for, item volumes remained a top priority. However, there was an acknowledgment that service revenue, especially in terms of private services like weight loss drugs, was likely to start becoming more important in the future in line with pharmacy contract expectations. In the next year or so pharmacies looking to sell should expect to see service volumes increasingly being taken into account when it comes to valuations.

The Role of Technology in The Pharmacy Sector

This change of composition within the pharmacy sector has led to more innovation the roundtable heard. Hub and spoke specialists from Centred Solutions explained that there were a range of technologies available, each bringing their own benefits. They explained that the key for pharmacies looking at automation, was ensuring they purchased the right type of technology for the outcome they were looking to achieve.

For example, hub and spoke solutions have the ability to transform the way the entire dispensing process is done within pharmacy, with the right solution able to remove up to 60% of overall dispensing volumes from pharmacy branches. The different types of hub and spoke business models now available for pharmacies of all sizes following the recent legislation change were highlighted.

These include the IntraGroup model, ManagedService model and JointVenture Co-operative. The team at Centred Solutions were able to dispel the myth that items prepared at a pharmacy hub would take over a week to send back to the pharmacy spoke and leave staff on the front line with no visibility on orders. Hub and spoke has moved on significantly in the last five to 10 years, they said, with a shift to regional hubs that can turn orders around in 24 hours and software that gives the pharmacy spoke visibility and control. The benefits of hub and spoke and technology were outlined and this included creating capacity in branch, stock savings and patient safety benefits.

Embracing Private Services

While automation can save pharmacies time, the roundtable heard that it was down to individual pharmacies to make sure that time was used effectively in branch. Marketing services to patients was highlighted as a key area for improvement with examples provided to showcase areas of best practice. There was extensive discussion around the potential of private services and the need for pharmacies to embrace this opportunity. The group heard that there had been an explosion in private weight loss medication with pharmacies in deprived areas having some of the highest volumes for this type of drug, demonstrating all patients are prepared to pay privately if the solution is right for them. With this in mind, participants agreed that it was essential for pharmacists to be looking at what other private services could be provided to generate additional revenue. Examples included women’s health services, men’s health, dermatology and focusing on gaps within the NHS that the community pharmacy sector could take advantage of.

Additional Funding for Pharmacies

For pharmacies looking to grow and expand, be that through the acquisition of new businesses or investment in technology or services, money is available from the banks with Barclays stating that they had earmarked £500m for healthcare investment alone and community pharmacy seen as a strong investment. However, some contractors explained that approaching the banks directly could sometimes be complex. Experts around the table from Rangewell explained that for pharmacies looking for funding, it was essential to work with specialists within the pharmacy sector who could advocate on their behalf with the banks and ensure they secured the best deals.

While pharmacy funding and the upcoming contract negotiations remain an absolute priority for the community pharmacy sector, the roundtable event highlighted areas of best practice that pharmacy could be considering now and showcased the amount of support from suppliers in building a pharmacy sector that is fit for the future.

Discover how FLOWRx can transform your hub and spoke operations. Book a demo to experience our technology first-hand.