Posts Tagged: Pharmacy Industry News

Pharmacy Customer Satisfaction: 2020 Rankings and Tips for Improvement

pharmacy customer satisfaction

Every business wants to delight its customers and deliver excellent service. That can be challenging, especially in healthcare. Pharmacy customer satisfaction involves many layers, something further complicated by the pandemic. There have also been major shifts into the industry where retail pharmacies do much more than just dispense prescriptions.

However, pharmacies do have insights into if their customers are satisfied. The J.D. Power 2020 U.S. Pharmacy StudySM released its rankings of the pharmacies with the highest customer satisfaction. The study surveyed 13,378 customers that filled a prescription within the last 90 days. We’re breaking down the insights from the survey and offering some tips to boost pharmacy customer satisfaction.

About the Study

The study includes several categories, rating both brick-and-mortar and mail order pharmacies. For brick-and-mortar, they further divided the category into three segments: chain pharmacy, mass merchandisers (i.e., Walmart, Costco), and grocery stores. The top chain pharmacy was Good Neighbor Pharmacy. Leading mass merchandisers was Sam’s Club and Wegmans for grocery. Humana had the highest score for mail order.

Key Insights: What Drives Pharmacy Customer Satisfaction?

The survey looks at various metrics around customer satisfaction, including those related to costs, billing, and service. Additionally, the survey sought to define what drives satisfaction, and these are some of the findings.

Health and wellness services correlate to higher satisfaction and higher spend. 

  • 48% of retail pharmacy customers used at least one of these services, a 5% growth from 2019. 
  • Those who take advantage of services spend at least $11 more. This number rises to $34 more when they engage in two or more services. 
  • Users of services are also more satisfied than those that are not. 
  • Takeaway: Your customers will stay loyal and spend more the more they engage with your pharmacy. Awareness is key to increase participation in services. Retail pharmacies that offer services need to ensure their patients know about them! These awareness strategies need to cross channels, including digital, mail, and in-store signage

Digital ordering leads to satisfaction, but adoption is low.

  • Only 9% of brick-and-mortar customers order prescriptions online.
  • 32% of mail order customers order through digital channels.
  • Customers that do use these channels report higher satisfaction.
  • Takeaways: First, it will be interesting to see if adoption levels rose in 2020 because of the pandemic. It’s possible they did for convenience. Second, the low adoption again probably is due to the lack of knowledge of options. Pharmacies can step up communication efforts around this, but health plans should, especially Medicare Advantage, should also make sure their members know about the options. 

Patients welcome physician recommendations, but few make them.

  • 8% of respondents said they received a recommendation from their physician for pharmacy or wellness services. Of those that did, 80% went with the recommendation. 
  • Takeaways: Providers are a critical part of the prescription ecosystem and can influence patient actions. Pharmacies can seek to build relationships with providers, not only to gain new customers but manage the continuum of care. For example, working with providers on medication adherence could be a great way to avoid adverse situations and reduce healthcare costs. 

How We Support Pharmacies with Customer Engagement

As pharmacy data management experts, we do more than convert and archive behind the scenes. We also have turnkey solutions for pharmacy print and mail services through our Printwerks brand. If you want to engage your customers, then we can help. From in-store signage to promote wellness services to direct mail letters to reengage patients, we’ve got solutions!

Check out our pharmacy print and mail services today

The Rise of Digital Pharmacies—How Will This Shape the Future of Pharmacy?

digital pharmacies

In the modern world, everything can become digital. Technology allows us to do or obtain just about anything we need online. That now includes prescription medicines. Digital pharmacies are seeing substantial growth, and it started long before COVID-19.

PillPack—The Literal Amazon of Digital Pharmacies

The wave of online pharmacy adoption began with PillPack, funded by the innovations of eCommerce giant Amazon. Consumers looked to PillPack and others for convenience. Consumers in 2020 don’t want to wait in lines or chase down. 

Amazon, a master at marketing, has been able to gain momentum in market share. They’ve even filed trademarks on the global level, indicating they are serious about international expansion.

Now others in the space are seeing growth, finding funding, and making plans to take on the leading retail pharmacies.

Digital Demand Grows, Investments Follow

Several digital pharmacy startups are making headlines relating to funding. Fierce Healthcare recently published a story highlighting these new players.

Medly Pharmacy received $100 million in series B funding. Launched in 2017, the company has already increased revenue by 100%. This new money will help them expand beyond their current area.

Others making moves include NowRx, which used crowdfunding to gain funding. The company’s founder felt compelled to change the pharmacy experience, which is still heavily reliant on paper scripts and in-person pickups. However, most retail pharmacies do have alternatives—mail order, curbside pickup, and delivery. Many have expanded these services during the pandemic. 

Alto Pharmacy and Truepill are also staking their claim in the pharmacy market. But what makes them so competitive?

It’s more than just convenience for the patient.

Digital Pharmacies Want to Disrupt the Industry 

online pharmacy

Yes, consumers want simplicity. Like any other thing they buy, they want it to appear on their doorstep. That’s only part of the equation.

Digital pharmacies want to meet the need in the market. And the need is multi-generational. Older patients may be unable to go to the pharmacy physically. Millennials are digital natives. It’s attractive to all.

Its appeal is not specific to urban areas. Those that live in cities have more options and certainly appreciate meds delivered. However, rural patients can find advantages as well, especially in pharmacy deserts—areas with limited access to pharmacies.  

The shift is consumer-driven, but it’s also about revolutionizing the entire process. These new pharmacies lean on automation, robotics, and technology to increase efficiency and streamline dispensing and insurance approvals. 

It’s not that retail pharmacies aren’t leveraging these tools. They are, in some instances. The big chains are but still rely greatly on the in-store experience. Independent pharmacies may not be able to invest in advanced technology. Their position to retain patients is about relationships.

Is a Hybrid Approach the Future?

Is the ideal pharmacy of the future one that is equal parts technology and personalization? Technology will enable them to scale and reduce costs. In doing so, pharmacists may have more time to build relationships with patients, consulting with them more about their medications and chronic conditions. 

Who will dominate the market in the next five years? That’s unknown for now. Internal and external factors will influence the answer. No matter what pharmacy operations look like in the future, data will continue to be critical to everything they do, and we’ll be there to support all pharmacies in their data management needs.

2020 ASAP Recap: Trends and Topics Every Pharmacy Should Have on Their Radar

2020 ASAP Recap

Last week, InfoWerks attended the 2020 American Society for Automation in Pharmacy (ASAP) Annual Conference. As a sponsor of the event and longtime ASAP member, these conferences offer us the chance to learn about what’s impacting pharmacy and healthcare right now. We’ve put together a quick 2020 ASAP recap with important insights that stakeholders should keep on their radar.

Several hot button topics were on the agenda this year, including pharmaceutical trends, pharmacy consumerization, USP <800>, medication access, the impact of Amazon, pharmacy’s expanding role, medication adherence, and how data is driving change in healthcare.

Pharmaceutical Trends

Trends in pharmacy are critical to identify, so all stakeholders understand where the market is and where it’s heading. Some trends of note include:

  • Rapid growth in specialty pharmacy driven by more chronic diseases and treatments for those
  • U.S. NAS launches are trending up
  • Abbreviated New Drug Application (ANDA) approvals have reached record highs, but withdrawals are up, too
  • Average number of retail store fills per quarter is 22,000
  • Patient deductibles and coinsurance have increased since 2013

USP <800> Update

USP <800> has evolved and has new compliance measures for pharmacy to consider. All hazardous drugs should be removed automated counting machines and pill counters with the exception of RxSafe 1800© and EyeCon©. To adhere to this regulation, pharmacies need to:

  • Create an inventory of hazardous drugs
  • Perform a risk assessment
  • Segregate hazardous drugs
  • Provide access to spill kits and Safety Data Sheets 
  • Establish training for staff
  • Document standard operating procedures

Why Healthcare Was Ripe for an Amazon Disruption

Amazon has made billions of dollars by finding opportunities. Healthcare is an industry that lacks efficiency and is infamous for its wasteful spending. Transparency in healthcare has become vital to its transformation. Amazon partnered with Berkshire Hathaway and JP Morgan to focus on tech solutions that could simplify healthcare for their employees and reduce costs while improving care. The main objective was to remove the middlemen in the process. 

The partnership has now become Haven Healthcare, which has a vision to initiate common-sense fixes and innovation. The group also states it is “free from profit-making incentives.” Right now, their main focus is to reduce pharmacy costs and provide more access to primary care. 

In September of 2019, Amazon debuted Amazon Care, which is a virtual primary care provider. It includes telemedicine, online chatting with nurses, medication delivery, and the ability to have a clinician make a home visit. 

Amazon and PillPack

On the pharmacy side, PillPack is increasing market share due to its convenience and simplicity for patients in receiving chronic meds. There have been some snags along the way. PillPack has accused retail pharmacy of disregarding patient requests to switch, which they deny. CVS and Walgreens responded by sending cease-and-desist letters and alleging that patient privacy was being compromised. 

In recent months, PillPack collaborated with Omnicell to send automated messages to patients to remind them to take their meds and reorder. They have also made a deal with Blue Cross Blue Shield of Massachusetts that will include an integration in the insurer’s app. 

It may seem daunting to compete with Amazon, as so many retailers have been taken down by the e-commerce giant. However, pharmacies can offer the same convenience of free delivery and dose packaging while also positioning themselves as medication experts that are there to answer questions and provide assistance. 

Pharmacy Moves to Take on a Bigger Role in the Healthcare Ecosystem

Many retail pharmacies are partnering with other organizations to expand their role in the lives of patients. This includes urgent care clinics, dietician and nutrition services, lab testing, and telehealth. 

Medication Adherence Benefits all Stakeholders

Medication adherence is still a major challenge in the U.S. Many circumstances contribute to this, including accessibility and costs. With pharmacies taking a more active position in medication adherence, everyone benefits. 

Patients have better health and fewer ER visits or hospitalizations, which reduces costs for all parties. With better adherence come better outcomes. Patients are able to manage their ailments, reducing the impact and strain on the healthcare system in general. One of the most important ways to do this from a pharmacy perspective is to offer and promote 90-day fills

Pharmacy Consumerization

ASAP 2020 recap

All of healthcare is having to pivot to consumerization. Consumers have new demands as well as more choices. Pharmacies can cater to consumers by:

  • Counseling patients with chronic diseases
  • Assisting with medication therapy management
  • Increasing the clinical role of pharmacy
  • Offering medication synchronization 
  • Providing more convenience for customers (i.e., rapid pickup or delivery)
  • Delivering options for reduced costs through discount cards

Key Drivers of Change in Healthcare

There are a host of factors that are impacting healthcare and driving change. An aging population and the fact that people live longer than they did decades ago are two aspects requiring healthcare to adapt. There is also a rise in chronic diseases, and new medications are being approved to treat those. 

One of essential elements affecting the landscape of medicine is data. Healthcare organizations collect, share, and analyze data in massive amounts. This data spurs innovation, but it also requires special care related to regulatory requirements. Further, technology is creating many opportunities to be more efficient and accurate; however, there are still many challenges related to data portability, accessibility, and interoperability. 

Pharmacy and healthcare will continue to see significant changes and shifts in the next year. It’s a new frontier in the industry—one that’s greatly dependent on data. InfoWerks is a healthcare data expert, delivering solutions that allow you to make the most of our data. Check out the solutions we offer, and thanks for reading our ASAP 2020 recap.