Financial Planning Remains Core Focus to Create Thriving Pharmacy Business | McKesson ideaShare

In a session at McKesson ideaShare, Benjamin Coakley, CFP, owner of The Waypoint Company, a pharmacy insurance group, discussed tips for independent pharmacies to thrive in a challenging health care landscape. By embracing strategic financial planning, diversifying services, and focusing on community relationships, pharmacists can transform their businesses from only being prescription dispensers to vital health care hubs that offer comprehensive patient care and generate more revenue.

Pharmacists can transform from only being prescription dispensers to health care hubs that offer comprehensive patient care and generate innovative revenue streams. | Image Credit: C Daniels/peopleimages.com

“There’s no such thing as balance in life because certain parts of your life are more important than others during other parts of your life,” Coakley stated. “Harmony is wonderful work for this because that's what happens when you're a pharmacy owner; when you're a business owner, different parts of your business are going to require more attention.”

Coakley started the session by discussing common pitfalls to being a pharmacy business owner, which include infrequent financial reviews. He stated that as the industry changed, a lot of pharmacies did not adapt to be run like a traditional business; therefore, a lot ended up closing.

“Some people don’t even look at the numbers because they don’t want to see the numbers,” he said. “The numbers don't lie. One of the things that [a friend] told me was that sometimes you have to be honest about where you are.”

He said that sometimes pharmacy owners have a piecemeal approach. Instead of signing up for solutions or programs because they are there, focus on a few and create a strategic approach to them. He said owners are not aware of all the options, so it’s important to research them. Further, key performance indicators (KPIs) should be looked at on a regular basis, which can include gross income, revenue per prescription, cost of goods sold, average scripts per day, gross profit per script, inventory turns, and staffing costs. However, there are also real-world—or modern, as Coakley described them—KPIs that few owners track. These can include the crossover percentage of patients utilizing other services, lifetime patient value, number of new patients per week, and revenue and profit generated per patient interaction.

A shift in mindset is needed to tackle some of these pitfalls, and Coakley said to take a strategic approach by assessing the logic of adding something new. Does it fit into the current system? Does it make money? He said manpower, oversight, and training need to be considered before adding something new. Poor delegation can often make the best innovations inefficient. Additionally, if something is not working, he said don’t wait until it turns around; eliminate it before it becomes a bigger issue.

In addition to pitfalls, Coakley discussed key relationships, which included accountants, business coaches, specialized wealth managers, mastermind groups, and other professionals. All partners included need to understand pharmacy and be able to adapt to the evolving business models. Coakley stated that if the accountant does not know what a DIR fee is, that’s a pretty big problem. The relationships need to be truthful and needs to understand the business of pharmacy as well as the pharmacy owner.

“I'm a firm believer that you have to have the right people on your team,” Coakley said. “If you think about any movie, there's always a guy and there's a group of people that help that hero along their journey. That's what your inner team should be doing.”

As for mastermind groups, Coakley stated that it should be a group of peers that are trying new ideas and can share what they have learned. Pharmacists and pharmacy owners can find out what is working and what does not work based on others in similar situations. Reaching out to local medical professionals in the same community can also benefit patients.

“If you collaborate with other professionals, they're looking at value, they're looking at flow. You guys have a lot to offer them,” Coakley said.

He said that pharmacy will never have the ability to perform to its highest potential unless employees are satisfied, so focusing on culture, making sure everyone is aligned, and most importantly, making sure everyone is happy will set a business up for success. He said that delegating helps because it empowers employees and helps the owner focus on other things.

Beyond employees, he stated that, to enhance performance, pharmacy owners have to think beyond the prescription. New ideas are happening every day, such as partnering with a primary care clinic, partnering with strategic community service providers, utilizing long-term care at home, and implementing remote therapeutic monitoring. If an owner focuses on the pharmacy’s relationship with the community, they can help them, and none of this is possible without trust. The model has to slow down and focus on taking the time to help patients, he said.

Finally, Coakley stated planning —forecasting, budgeting, inventory, and expanded capabilities—increased the viability and vitality of the business. By partnering with specialists, it can help owners learn and improve businesses. When constructing a plan, it should include the vision, mission, purpose, and values because without it, he said pharmacies are just in survival mode and cannot truly thrive.

“Pharmacies are the pillars, and there's going to be a huge gaping hole in the fabric of American society if you lose independent pharmacists,” Coakley said.

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REFERENCE

Coakley, B. Strumming the Right Chord: Keeping Your Pharmacy Finances in Harmony. McKesson ideaShare. July 10 to 13, 2025. Nashville, Tennessee.