Degree online pharmacy program

Hi-School Pharmacy: efficiency is aim in Northwest - 2003 Annual Report

In the face of a tough economy and plenty of competition, Hi-School Pharmacy concentrated on filling key niches within its markets and reported a respectable sales growth of 5 percent to $200 million in 2002. "We are looking forward to the economy getting better," said president and chief executive officer Steven Oliva. "In this area, we have 6 percent to 7 percent unemployment, and that's had an effect on the business."

Despite less-than-boom times, Hi-School added one new location in 2002. The chain plans to absorb one independent, open one new location and relocate one existing store in the coming year. And it will continue to identify opportunities to better serve customers in both the pharmacy department and front-end categories.

Automating operations continues to be an area of concentration for the chain--one that will improve work flow, as well as profitability. "We added Automed and ScriptPro in our pharmacies and are adding a new 'will call' system from a local company, GSL, in three to five of our stores in the next few months," Oliva said.

According to Oliva, the new system will help increase efficiency in the pharmacy. If effective, the GSL system will be rolled out chainwide. "We know that in stores in which we've already automated to some degree, we've improved customer service and have been able to reduce labor down from three to two cashiers," Oliva said. "Basically, the more streamlined the work flow, the more time pharmacists can give to the customer in terms of patient counseling." Oliva added that automation also relieves some of the stress level in the busiest stores and has raised job satisfaction among those pharmacists.

Freeing pharmacists from behind the counter is a big focus for the chain--one that will continue in 2003 as Hi-School concentrates on adding more patient care programs. "Patient education programs and services are really a win-win for patients and for pharmacists," Oliva said. "The patients benefit, and the pharmacists are happier when they are doing what they've been trained to do."

In 2002, for example, Hi-School pharmacists administered about 10,000 flu shots. And the chain offers more than just flu shots to patients. Hepatitis A and B vaccinations and pneumococcal vaccinations are offered routinely. The chain's pharmacists also administer birth control injections.

In addition to the bone density, cholesterol, prostate-specific antigen and blood glucose health screenings the chain offers, its pharmacists are focusing to an even greater degree on disease management pro grams--particularly diabetes.

"We're looking to serve the diabetic population as best we can," Oliva said. "It's an extremely profitable business for us. This population spends two to three times as much in the store as the average customer does."

Oliva said that the chain continues to get referrals because of its extensive efforts in diabetes care. "If you're doing a good job, doctors will refer patients to you. It really has a lot to do with the quality of the pharmacists," he said.

"Our pharmacists are often the first point of patient contact for initial screenings, and they routinely help patients with meter selection," said Merrie Kay Alzola, pharmacy manager at one Hi-School location. "Diabetes care is a huge profit business, and I believe it s going to have explosive growth over the next 10 years.

"We continue to add products as patients ask for things," she added. "We have an active local hospital that has a great diabetes education program, so we always are in touch with what patients are looking for."

Pharmacy programs expand

In 2003, Alzola said the chain will be roiling out immunization programs to more store locations. "Our pharmacists are getting more involved in these programs, and we want to roll the programs out chainwide to improve customer service," she said.

In fact, Hi-School may be looking to emulate a pilot program currently being tested in Seattle in which pharmacists can prescribe birth control, as well as administer birth control injections.

"The program is being tested in three Seattle-area pharmacies, and once we learn how it is working for them, we may consider participating in a similar program in the Vancouver area," Alzola said.

Being as many of the chain's 37 stores are locates in rural areas, health services and education programs are extremely well received at many store locations. "A lot of our stores are in outlying areas that are about a one- to two-hour drive from Vancouver," Alzola said.

That market dynamic also has led to the growth of Hi-School's home health care and durable medical equipment business. "I think that business will continue to grow, but it's a mixed bag," Oliva said. "We're fighting reimbursement issues and learning the business as it relates to Medicare and Medicaid. Not too many drug chains are doing this because the billing is so complicated.

'We tried to do the billing for this part of the business, but billing issues become such a big concern that we had to consolidate all billing for home health care to one location and take the function out of the stores," he said. The chain is hoping to streamline the billing process by automating the process and utilizing online billing systems.

Front-end opportunity

The chain also will continue to identify unique opportunities in its front-end business. Building on last year's success of its garden shops, Hi-School is continuing to highlight that department in many of its locations.

"The garden center business keeps expanding," Oliva said. "We've taken it from a small department outside the front of the store to a 3,000-square-foot enclosed location in five or six stores. The departments are a natural extension of our hardware departments, which also do well."

Indeed, the garden shops, which operate from March 1 to the end of July and are featured prominently on the chain's Web site during the spring and summer months, stock seeds and starts, bare root plants, fertilizer and garden tools.

The consumables category also is getting more attention. "We're continually expanding the food category," Oliva said. Most new stores include an expanded built-in cooler section with up to 30 feet devoted to refrigerated sections. In stores that can accommodate them, satellite coolers are placed at the pharmacy and near checkouts to maximize sales.

The chain is using its own warehouse to supplement deliveries from its food wholesaler so it remains in stock on key items-particularly in the profitable beverage category.

Hi-School, hoping to capitalize on the popularity of convenient meal alternatives, will take a thoughtful look at freezer sections in the next year. "We are reviewing convenience foods in that area," Oliva said. No doubt, if the chain identifies a need in specific markets, the front-end mix at stores operating in that market will look to fill the niche.