Kinney Drugs

RX 2016 CHANGE TO WIN Powerx report

Retail pharmacy in 2016: Engaging with patients, payers and providers

By Jim Frederick empowered and informed patients themselves ferings, such as immunizations and other pre- as they grapple with rising out-of-pocket costs ventive care, healthcare clinics, pharmacist-led In the race to transform the healthcare system, and the still-growing shortage of primary care medication therapy management and chronic is retail pharmacy a driver or a passenger? physicians. condition management.” Both, it turns out. As shown in this year’s With this massive “movement toward qual- PoweRx Annual Industry Report from Drug ity and coordinated delivery of care,” to quote FORGING HEALTH SYSTEM ALLIANCES Store News, chain and independent community Paul Abramowitz, CEO of the American Soci- Walgreens isn’t alone. The entire spectrum of pharmacies are both an instigator and a ben- ety of Health-System Pharmacists, community retail pharmacy is scrambling to align itself with eficiary of the tectonic forces shaping this new pharmacists are being drawn inevitably into the a fast-reforming healthcare system, both exter- healthcare paradigm now emerging out of the fast-moving center of the shifting health system. nally and internally. old, outmoded and vastly expensive fee-for-ser- Indeed, pharmacists are moving to “the Externally, on a macro level, the industry has vice system. frontlines of the healthcare delivery system,” ac- embarked on a new era of consolidation and The pharmacy industry is riding a wave of cording to Walgreens Boots Alliance, as “rising merger activity as the biggest chains ramp up fundamental change spurred by the reforms healthcare costs and the limited supply of pri- buyout and merger activity. The goal: to boost ushered in by the Affordable Care Act of 2010, mary care physicians present new opportunities economies of scale and purchasing power, and and by the urgent mission to make health care for pharmacists and retail pharmacies to play an to position themselves with more points of care more economical, outcomes-oriented, patient- even greater role in driving positive outcomes for a health delivery system that demands great- centered and accessible. Pressure for fundamen- for patients and payers.” Walgreens, the com- er patient access to care. tal change is coming both from public and pri- pany noted in its 2015 annual report, sees “new To that end, Walgreens finalized its merger vate health plan payers, and from increasingly opportunities … through expanded service of- Continued on page 3 2 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Continued from page 2 DISPENSING LOCATIONS BY NON-DISCOUNTED SPENDING* with U.K.-based chain pharmacy and wholesale giant Boots Alliance early last year, and CHANNEL 2015 2014 2013 2012 2011 followed that with a deal last fall to buy Rite RETAIL AND MAIL $305.9 $272.7 $237.6 $227.4 $235.9 Aid — No. 3 among U.S. drug store chains with Chain stores 130.7 121.8 109.8 106.3 109.8 more than 4,560 stores — for $17.2 billion in cash Mail service 97.4 82.3 65.3 60.9 63.9 and assumed debt. That merger has yet to win Independent 48.0 42.2 36.7 36.5 38.3 approval from antitrust regulators pending Wal- Food stores 29.7 26.4 25.7 23.6 23.8 greens’ agreement to shed hundreds of overlap- NON-RETAIL $118.9 $105.9 $93.9 $90.4 $92.4 ping stores. In another high-profile merger last year, CVS Clinics 56.2 48.4 42.3 39.5 38.6 Health acquired Target Stores’ 1,672 in-store Non-federal hospitals 33.4 30.2 28.4 28.1 28.1 pharmacies, vaulting the chain to the top posi- Long-term care 16.7 16.2 14.0 13.9 15.2 tion in U.S. store count with nearly 9,600 stores HMO 4.9 3.9 3.0 2.8 2.6 coast to coast. Also finalized in early 2015: the Home health care 3.9 3.4 2.8 2.7 2.7 marriage of Albertsons and Safeway, bringing Federal facilities 2.7 2.7 2.4 2.5 4.1 together two of the nation’s top supermarket Miscellaneous 1.1 1.0 0.9 0.9 1.0 operators and creating a nationwide network of nearly 1,740 in-store pharmacies. TOTAL $424.8 $378.6 $331.5 $317.8 $328.3 Internally, within the store, pharmacy lead- * In billions Source: IMS Health, National Sales Perspectives, January 2016 ers are reinventing the practice of pharmacy itself with a still-expanding menu of clinical and DISPENSING PRESCRIPTIONS BY LOCATIONS* patient-focused services never before attempted in the community setting. To that end, they’re CHANNEL 2015 2014 2013 2012 2011 spending heavily to build up the information RETAIL AND MAIL 3,990 3,941 3,871 3,825 3,686 technology and dispensing automation needed Chain stores 2,522 2,465 2,386 2,303 2,206 to support the shift among their pharmacists to a Independent 739 738 736 738 739 more clinical role. Food stores 522 516 516 521 481 In so doing, both chain and independent Mail service 207 212 233 262 260 pharmacies have positioned themselves effectively for this new paradigm of accountable and NON-RETAIL 378 384 366 330 329 more cost-effective care by developing a whole Long-term care 378 384 366 330 329 suite of value-added patient-care services, such TOTAL 4,368 4,325 4,236 4,155 4,014 as immunizations, medication therapy man- * In millions (unadjusted for prescription length) Source: IMS Health, National Prescription Audit, December 2015 agement, preventive-care and healthy lifestyle programs, diagnostic screenings and other ac- part of care teams to help improve patient health bination of many things” are “happening with- tivities. They’re leveraging those clinical care and outcomes.” in the four walls of the pharmacy,” noted Josh and preventive health assets by transforming Craig Norman, SVP pharmacy for Texas- Flum, EVP pharmacy services at CVS Health, in their relationships with health plan payers and based supermarket and pharmacy powerhouse a roundtable discussion on health, wellness and by forging new, collaborative partnerships with H-E-B, summed up the pharmacy community’s technology conducted by DSN. Those trends hospitals and health systems that help post-dis- approach to the changing healthcare dynamic include “a growing product dispensing busi- charge patients transition from the hospital back in a recent interview. “That’s really our overall ness that’s becoming increasingly complicated” to the home and community settings in a seam- goal or mission — to be the educational and with “plan designs and formularies and all of the less web of integrated care. healthcare resource for all our customers,” Nor- complexities that our store teams manage to help “Pharmacists are engaging with other profes- man told DSN. “We feel very strongly about all patients navigate an increasingly complicated sionals and participating in models of care based of [our] services and what we’re able to offer to pharmacy benefit.” on quality of services and outcomes, such as all of our customers, from the standpoint of im- In addition, Flum said, “you have a rapidly [accountable care organizations],” noted Steve munizations or screenings or whatever our pro- growing set of clinical care programs and ser- Anderson, president and CEO of the National gram is … so that our patients are as informed vices that are being delivered by our pharmacy Association of Chain Drug Stores. “They’re also and as educated as they can be about their teams to our patients, and … an increasingly partnering with healthcare providers working in health condition.” complex regulatory environment.” nearby health systems and hospitals, serving as At this point in pharmacy’s evolution, a “com- Continued on page 4 3 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Continued from page 3 PURSUING ADHERENCE AND DISEASE PREVENTION “PHARMACISTS ARE ENGAGING WITH OTHER PROFESSIONALS AND PARTICIPATING One pharmacy service that has captured in- IN MODELS OF CARE BASED ON QUALITY OF SERVICES AND OUTCOMES, SUCH AS ACOs. creasing attention among retailers is the effort THEY’RE ALSO PARTNERING WITH HEALTHCARE PROVIDERS WORKING IN NEARBY to improve prescription adherence rates among HEALTH SYSTEMS AND HOSPITALS, SERVING AS PART OF CARE TEAMS TO HELP Americans. Getting patients to even fill their IMPROVE PATIENT HEALTH AND OUTCOMES.” prescriptions after visiting their doctors — and — Steve Anderson, president and CEO, NACDS then to take their medications as prescribed through the full course of treatment — pays big dividends, both in terms of improved health out- trade channel also are investing more resources cists’ scope of practice. comes and lower long-term health costs, and in in free or low-cost health screenings and in- As such, H.R. 592 “would designate phar- a terms of a healthier and more predictable rev- store health fairs. Consumers clearly embrace macists as healthcare providers in Medicare enue stream for pharmacy retailers. the concept. At Walmart’s inaugural, nation- Part B,” said Anderson of NACDS, and “allow “That’s the focus of the entire pharmaceuti- wide health event last fall, more than 10,000 Medicare Part B to utilize pharmacists to their cal industry right now: how can we improve company pharmacists provided more than full capability.” compliance and adherence?” said Norman. In- 50,000 immunizations while local nurses hired In testimony June 8, Anderson told the U.S. deed, given the “fragile” condition of many of for the event conducted nearly 300,000 health House Ways and Means Subcommittee on the patients it serves — and the benefits to both screenings, according to Alex Hurd, Walmart Health that “expanding access to pharmacist ser- patient health and the pharmacy business that senior director of product development growth vices is a key component to reducing healthcare can come through adherence improvement ef- and payer innovations. costs and improving patient outcomes.” forts — those efforts currently are “our biggest “It’s about early … detection and prevention, Another legislative priority is passage of Sen- challenge, and the thing that we’re working the and providing access points for health services ate Bill 776, the Medication Therapy Manage- hardest on right now,” Norman acknowledged for millions of Americans who normally don’t ment Empowerment Act of 2015. The bill would at the DSN health roundtable. engage with the system,” Hurd told DSN. The fast-track access to MTM services for Medicare To that end, H-E-B has joined a growing list events also provide “the opportunity for the beneficiaries with chronic conditions, prior to the of retail pharmacies offering monthly, synchro- pharmacist to engage with the patient,” he said. 2017 rollout of an MTM model pilot project by nized prescription refills to patients as a tool to the U.S. Center for Medicare and Medicaid In- boost adherence. STILL FIGHTING FOR FULL PROVIDER STATUS novation. NACDS and other advocates are lob- Increasingly, pharmacy retailers across every Meanwhile, the battle for recognition and fair bying Congress to ensure that retail community compensation for pharmacy-based health ser- pharmacists are included in that pilot program vices rages on. Those services already are saving “to enhance its potential for success,” according Americans and their insurers billions of dollars in to the group. health costs every year. But pharmacy advocacy There’s no question that public recognition groups have yet to win approval in Congress for and acceptance of pharmacy’s contribution to critical legislation that would confer full health health is growing. A 2015 nationwide survey of provider status on pharmacists — or create a 1,000 likely voters showed “overwhelming sup- universally recognized federal reimbursement port for allowing pharmacies to offer … new standard for services like medication therapy healthcare services, with notable increases since management. 2013,” noted the pollsters Public Opinion Strat- The quest for federally endorsed provider egies. Indeed, more than 8-in-10 respondents status is embodied in the long campaign by (83%) said pharmacies are appropriate settings NACDS, the National Community Pharmacists for basic health services, and nearly as many en- Association, the American Pharmacists Associa- dorsed the idea of pharmacies as centers for im- tion and other members of the Patient Access to munizations and primary healthcare clinics. Pharmacists’ Care Coalition to convince Con- Other forces also are at work to drive the ex- gress to pass H.R. 592/S. 314, the Pharmacy and pansion of pharmacists’ role in public health. The Medically Underserved Areas Enhancement Act. Joint Commission of Pharmacy Practitioners’ The measure — which has been cosponsored by Pharmacists’ Patient Care Process, for instance, a roughly two-thirds majority of House mem- “supports the evolution of the pharmacy pro- bers and nearly half of the Senate — would boost fession from primarily a medication-dispensing Pharmacies are looking to build up dispensing technologies access to pharmacist-provided services to under- role to one of providing clinically oriented pa- to support the shift of pharmacists to a more clinical role. served Medicare beneficiaries within pharma- tient-care services,” the APhA reported. 4 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

FOOTNOTES FOR TOP PHARMACY RETAILERS Profiles of leading 1. CVS total sales includes pharmacy services revenue ($100.4 billion) and retail sales ($72 billion); stores w/Rx includes acquired Target pharmacies; Rx sales includes two weeks of Target results (deal closed Dec. 16, 2015) pharmacy retailers 2. Excludes results from Sam’s Club 3. Excludes results from Medicine Shoppe/Medicap 4. Includes 151 acquired Roundy’s stores (111 w/Rx) With more than $269 billion in pharmacy sales 5. Store count includes 19 specialty infusion sites and nearly 59,000 pharmacies, the 2016 PoweRx 6. Results include 1,300 acquired Delhaize America stores (187 w/Rx) 7. U.S. operations only list represents more than 80% of the total 8. Excludes results in Sears stores retail pharmacy business. And with the rise 9. Results include 212 Hy-Vee stores w/Rx, 17 Hy-Vee drug stores, five specialty pharmacies, 18 clinic pharmacies and one central fill pharmacy of more consumer-centered health care, they 10. Includes 372 in-store pharmacies and three specialty pharmacies 11. Includes 61 Price Rite stores, six Fresh Grocer stores and one Dearborn are creating innovative programs and entering Market store healthcare partnerships to move beyond 12. Stores include supermarket pharmacies, convenience store, free-standing drug store, tobacco and gas formats dispensing and expand their role in the U.S. 13. Includes 13 free-standing drug stores, 11 supermarket pharmacies and healthcare delivery system. one infusion center

2015 2015 2015 Rx TOTAL CORP. TOTAL STORES 2015 Rx TOTAL CORP. TOTAL STORES RANK COMPANY SALES* SALES* STORES WITH Rx PAGE RANK COMPANY SALES* SALES* STORES WITH Rx PAGE 1 Walgreens $53,500 $81,000 8,173 8,173 6 25 Kinney Drugs $701 $845 102 102 30 2 CVS Health1 52,500 153,300 7,909 9,569 7 26 Shopko 649 3,300 372 262 31 3 Rite Aid 18,400 26,700 4,561 4,561 8 27 Wegmans 574 7,900 88 88 32 4 Walmart2 17,900 298,400 4,574 4,550 9 28 CARE Pharmacies 545 574 82 82 33 5 Cardinal Health3 17,600 18,900 8,400 8,400 10 29 Supervalu 525 4,900 200 190 34 6 Health Mart 9,500 10,300 4,567 4,567 11 30 Thrifty White 371 468 92 91 35 7 Kroger4 9,200 109,800 2,778 2,231 12 31 Sav-Mor 265 300 59 59 NA 8 Good Neighbor 8,300 8,500 4,800 4,800 13 32 Brookshire Grocery 300 2,500 151 117 36 Pharmacy 33 Discount Drug Mart 300 662 73 73 37 9 Albertsons/Safeway 5,000 55,000 2,200 1,738 14 34 Raley’s 277 3,000 128 96 38 10 AAP 4,900 5,300 2,141 2,141 15 35 Weis Markets 274 2,900 163 134 39 11 Diplomat5 3,400 3,400 35 35 16 36 Brookshire Brothers12 273 1,300 111 73 40 12 Ahold USA/Delhaize 3,000 44,200 2,088 772 17 37 Bartell Drugs 263 470 64 64 41 America6 38 Schnuck Markets 257 2,700 99 94 42 13 Costco7 2,500 84,400 480 471 18 39 Aurora Pharmacy 231 251 71 71 43 14 Publix 2,000 32,400 1,110 983 19 40 Tops 200 2,793 173 52 NA 15 Sam’s Club 1,900 56,800 653 613 20 41 Price Chopper 160 4,000 136 78 NA 16 Medicine Shoppe 1,900 2,000 523 523 21 International 42 Lewis Drug 156 216 48 46 44 17 H-E-B 1,700 23,000 371 260 22 43 Marc Glassman 150 1,200 58 49 NA 18 Kmart8 1,200 10,200 941 659 23 44 Benzer Pharmacy 125 125 53 53 45 19 Hy-Vee9 1,100 9,300 240 253 24 45 Fruth Pharmacy 105 123 29 29 46 20 Fred’s Super Dollar10 1,100 2,200 659 375 25 46 Basha’s 104 1,600 118 93 47 21 Southeastern Grocers 1,017 11,300 756 504 26 47 Ritzman Pharmacy13 86 89 25 25 48 22 Giant Eagle 928 9,500 222 219 27 48 Pharmaca 73 122 30 28 49 23 Meijer 769 17,600 224 224 28 49 Hartig 59 74 23 22 50 24 Wakefern Food11 754 15,700 330 218 29 50 Astrup 51 73 17 17 51

* All sales in millions; reflect most recent fiscal year

5 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Securing patient access via tech, partnerships

By Michael Johnsen

Clearly, the name of the game is access. And Walgreens Boots Alliance is securing plenty of access to the patient with its proposed acquisition of Rite Aid’s 4,561 locations. If all goes as planned, and the combined Walgreens/Rite Aid enterprise needs to divest fewer than 1,000 locations, Walgreens will emerge with more than 11,500 locations in the United States, Puerto Rico and the U.S. Virgin Islands, and at least 2,000 more retail pharmacy locations than its nearest competitor. That’s a lot of access for a company that has, in the past year, created a scalable global pharmacy-led health and well-being enterprise. “The proposed Rite Aid acquisition is quite simply about expanding choice,” Richard Ashworth, president of pharmacy and retail operations at Walgreens, told Drug Store News. “It’s about expanding the Walgreens offering greens health proposition, Ashworth said. and making it a convenient and high-quality, “We’re refilling a prescription every second affordable and accessible way by which care through our mobile app,” he noted. “Wide us- Walgreens can be delivered.” age, high volume.” Walgreens serves more than 6 million cus- Another of the strategic pillars of Walgreens tomers on a daily basis, filling almost 900 healthcare strategy is partnering with hospi- million prescriptions annually in the process. tal-based health systems in an effort to connect That market penetration will grow if the Rite the dots between points of access. Aid deal is completed — Rite Aid serves 1.9 Walgreens has been successfully approach- million consumers per day, filling 304 million ing health systems, health plans and others in prescriptions annually, according to Rite Aid’s an effort to connect processes and data to im- HQ: Deerfield, Ill. 2015 annual report. prove adherence rates, close gaps in care and 2015 sales: $81 billion Walgreens also is increasing access to pa- use digital health tools to create incentives for % change vs. 2014: 6% No. of stores: 8,173* tients through several innovative, strategic patients and consumers to take better care of No. of stores with Rx: 8,173* partnerships, and what Ashworth calls adopt- themselves and remain adherent. Avg. store size: 14,700 sq. ft. ing more of a partnership mindset, from a In March, Walgreens and UnitedHealth Rx sales: $53.5 billion healthcare and pharmacy perspective. Group announced a new pharmacy partnership % of sales from Rx: 66.1% Walgreens has pursued a telehealth offering that will enable eligible OptumRx members to Sales per store: $9.9 million through MDLive, which reaches users in more fill 90-day prescriptions at mail-order co-pay *Includes only U.S. retail pharmacies. Source: Company reports than 25 states. The service gives Walgreens levels at any of Walgreens pharmacies nation- website and mobile app users 24/7 access to wide or through OptumRx home delivery. MDLive-affiliated U.S. board-certified doctors. And while a significant focus for Walgreens beauty brands. Alongside that service, the company in fall is broadening health access points for its cus- Walgreens currently is working on an ini- 2015 added the Walgreens Connect app, which tomers and partners, the company also is cre- tiative dubbed “Beauty 2000” that will see a allows Balance Rewards members, who own a ating a coveted destination point for higher- notable merchandising remake this summer Well at Walgreens brand blood-glucose meter margin beauty products, taking a page out across some 2,000 locations. Expect to see or blood-pressure wrist monitor, to earn points of the Boots playbook by transforming an WBA’s Boots brands, such as No7 and Soap & for taking daily measurements. already cutting-edge beauty proposition into Glory, play a significant role in that new mer- Digital is an important piece of the Wal- a must-visit destination for WBA’s owned chandising package.

6 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

CVS looks to front-end, Target stores for growth

By Michael Johnsen

CVS Health is on course to create a branded retail pharmacy platform that features an extensive suite of leading assets to address America’s cost, quality and access issues across the healthcare paradigm. With the closing of the Target pharmacy acquisition late last year, CVS Health adds 1,672 additional access points. The additional 100 million annual prescriptions that the Target acquisition represents is a significant opportunity for CVS. CVS/pharmacy on average fills twice as many prescriptions per pharmacy versus the average legacy Target pharmacy. In its core stores, CVS/pharmacy is focused on boosting front-end performance. While the over in 4,500 locations, “with hot spots to show chain’s same-store pharmacy sales performance her new colors and new trends, and mirrors to re- was up 4.5% for the year ended Dec. 31, front- inforce her beauty,” Foulkes shared with analysts end comparable store sales were down 5%. Front in December. “In our best stores, we’ve upgraded store same-store sales would have been approxi- the self-serve [testing] units that bring customers CVS Health mately 520 basis points higher if tobacco sales in from the drive aisle. In facial care, we’ve added were excluded from the year ended Dec. 31, 2014. new features with bolder brand blocking.” Since exiting tobacco, CVS’ average basket size The overall result is a more upscale look and across the front-end is up 2%. And across high- feel that has contributed to a 3.7% lift in beauty er-margin, more core categories like health and and personal care sales in those remodeled stores. beauty, average basket size is up 4%. This spring, customers will find a new destina- The changes CVS is making to its front end ap- tion to discover beauty tools for face, brows and HQ: Woonsocket, R.I. pear to be working — in reset stores CVS/phar- nails with the launch of an improved cosmetic 2015 sales: $153.3 billion* macy is seeing a 2.5% performance improvement wall. “We are also adding easier access to travel- % change vs. 2014: 10% since the remodel. Helena Foulkes, CVS/phar- friendly and last-minute beauty products in our No. of stores: 7,909** No. of stores with Rx: 9,569*** macy president, spoke with Drug Store News on checkout aisles, so shoppers have easy access to Avg. store size: 10,500 sq. ft. CVS/pharmacy’s progress across its five-point the beauty products they need,” Foulkes added. Rx sales: $52.5 billion**** front-store growth strategy. % of sales from Rx: 72.9% MyCVS store Sales per store: $9.1 billion Better health made easy With its acquisition of Navarro pharmacy in *Includes pharmacy services segment revenue of $100.4 billion and retail sales of $72 billion To accentuate its health position, CVS/phar- south Florida, CVS Health has incorporated the **Retail stores macy is placing a greater emphasis on health learnings from that Hispanic-focused pharmacy ***Includes acquired Target pharmacies ****Based on retail sales; Includes two weeks of Target pharmacy with a remodeled “health quadrant,” showcasing business to create 11 CVS Pharmacy y mas, a revenue (deal closed Dec. 16, 2015) key categories like vitamin, allergy and cold, and store environment where the Hispanic customer Source: Company reports “healthier-for-you” food options. In 500 remod- feels welcome. Sales are up 10% in the CVS y eled stores, sales of health items are up 1.9% and mas stores. Digital innovation sales of better-choice food items have contributed CVS/pharmacy is investing significantly in an to an 8.5% lift in consumables. Customer-driven personalization enhanced digital shopping experience. “We are CVS/pharmacy also is expanding health- CVS/pharmacy also has been busy leveraging using digital technology to personalize the indi- oriented services in the store, including a pilot of its insights from its ExtraCare loyalty program vidual shopping experience,” Foulkes told Drug hearing and optical centers in 12 stores. to feed a more personalized, one-to-one relation- Store News. “We’ve seen great adoption of our ship with its customers. Those kinds of personal- CVS Pharmacy app.” According to Foulkes, dig- Elevate beauty izations will pay dividends, Foulkes said, as they itally-engaged consumers visit stores six times In the past year, CVS has given beauty a make- target higher value front-store customers. more per year and spend 4.5 times more.

7 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Redefining front-end, pharmacy offerings

By Michael Johnsen

Long before Rite Aid shareholders voted to ap- prove its proposed merger with Walgreens Boots Alliance on Feb. 4, Rite Aid had been growing a modern-day retail healthcare company with vi- able health-improving solutions. “The evolving needs of our customers, the emergence of new technologies and the historic healthcare transformation have all challenged us to redefine the way we do business,” Ken Mar- tindale, CEO of Rite Aid Stores and president of Rite Aid Corp., told attendees of the company’s supplier conference last year. “At Rite Aid, we’re looking to the future, building our vision for success and confidently stepping forward.” Last year Rite Aid opened its first net new store since 2010, debuting the latest version of its constantly evolving Wellness Store concept. “As we begin to build up our development pipeline through new and relocated stores, we are laying the foundation for future growth and continuing tools and automated courtesy refills. our transformation into a retail healthcare com- In February 2015, Rite Aid announced its ac- pany,” said John Standley, Rite Aid chairman and quisition of EnvisionRx, a pharmacy benefit man- Rite Aid CEO at the time of the opening. ager that manages 21 million lives as part of a $5 As of Dec. 17, Rite Aid operated 1,948 of its billion enterprise. “One of the things we’re really Wellness Stores, which comprised some 42.7% of excited about is that EnvisionRx has its own in- its store base. surance company, which puts us into the Part D Another important chapter from 2015 cen- business,” Standley explained to DSN last sum- tered around enhancements to its Wellness+ loy- mer. Beginning in 2017, the acquisition will el- alty program. In March 2015, Rite Aid became evate Rite Aid’s participation in the Part D arena part of Plenti, the first U.S.-based consumer loy- from a participating pharmacy across two region- HQ: Camp Hill, Pa. 2015 sales: $26.7 billion* alty coalition, in partnership with American Ex- als and one national network to a plan sponsor. % change vs. 2014: 1.3% press, AT&T, ExxonMobil, Macy’s, Nationwide EnvisionRx’s Orchard Pharmaceutical Services No. of stores: 4,561 Insurance, Enterprise Rent-A-Car, Direct Energy also expands Rite Aid’s access to limited-distri- No. of stores with Rx: 4,561 and Hulu. “We think this is a tremendous oppor- bution specialty drugs tenfold, from five to 50. Avg. store size: 12,400 sq. ft. tunity to acquire new customers into our loyalty Rite Aid’s Health Alliance program now fea- Rx sales: $18.4 billion % of sales from Rx: 69.1% program,” Martindale told Drug Store News. tures eight healthcare providers who work with Sales per store: $5.8 million Another patient-focused health initiative that Rite Aid pharmacists and specially trained care * Fiscal year 2016 for 52 weeks ended Feb. 27 has really taken hold is EQuIPP. Rite Aid in De- coaches to help poly-chronic patients. Source: Company reports, DSN estimates cember installed Pharmacy Quality Solutions’ Patients with chronic conditions — such as EQuIPP platform across its store base so phar- congestive heart failure, COPD, high choles- ized healthcare action plan in coordination with macists can access performance data and met- terol and diabetes — are recommended to the the patient’s physician. rics, making Rite Aid the largest drug store chain program by their primary care physician. Rite The full range of services available to patients to provide EQuIPP access to all pharmacists. Aid pharmacists and care coaches work with participating in Rite Aid Health Alliance in- In addition to using EQuIPP, Rite Aid has a the physician and patient on an ongoing basis cludes medication compliance support, compre- number of other programs aimed at boosting ad- to improve the patient’s overall health and self- hensive medication reviews and reconciliation, herence, including medication therapy manage- management abilities. The care team members nutrition and weight management information, ment and its medication synchronization service collaborate with the patient to establish health disease education, exercise coaching and tobacco One Trip Refill, as well as compliance monitoring goals, eliminate barriers and create a personal- cessation support.

8 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Walmart sharpens healthcare focus

By Jim Frederick

Affordability, accessibility, convenience, selection — those are the pillars of Walmart’s strategy to become Americans’ top resource for retail pharmacy and preventive health services. Walmart has crystalized its health-and-wellness mission around its primary core capabilities, including its unmatched ability to turn its massive scale and buying power into lower prescription costs on some medicines — and its broad appeal as a one-stop destination for pharmacy services, food (as the nation’s largest grocer) and home products. “Walmart is the only retailer in the United States that operates its own pharmacies, vision centers and care clinics, and provides a comprehensive assortment of [preventive] and wellness products in … grocery, electron- ics, sporting goods, home, apparel and consumables in stores and online,” said Michelle Gloeckler, EVP of consumables and health and screening ever done in the United States,” Blake- wellness at Walmart U.S. “Over the past year, man told Drug Store News. “We offered free blood Walmart has added thousands of wellness pressure, glucose, vision screenings and healthy Walmart products, and plans to expand in notable ar- product demos in [more than] 4,400 Walmart eas, such as durable medical equipment, spe- stores, as well as … health insurance education cialty prescriptions and active nutrition.” centers and a wide range of immunizations.” To that end, Walmart spokesperson Molly “The results were outstanding,” she contin- Blakeman said, “we’re focused on preventive ued. “In just four hours, we provided [more care and supporting overall well-being across than] 280,000 health screenings … [and more our entire assortment — in stores and online than] 50,000 immunizations.” — through in-store events, online education HQ: Bentonville, Ark. and an expanded assortment of products and Ending the ‘Express’ experiment 2015 sales: $298.4 billion* services solutions.” Among the most significant company de- % change vs. 2014: 3.6% No. of stores: 4,574* Blakeman said Walmart’s commitment to velopments last year was the decision to aban- No. of stores with Rx: 4,550* health “doesn’t end in our health-and-wellness don its experiment with a small-store format. Avg. store size: 182,000 sq. ft. area” or in its roughly 4,500 in-store pharma- Instead, the company is redoubling its focus Rx sales: $17.9 billion cies. “We have many products customers need on supercenters and Neighborhood Markets. % of sales from Rx: 6% to start or continue their journey to a healthy “In relation to the smaller stores, we closed 102 Sales per store: $65.2 million lifestyle, such as fresh produce, apparel, exercise what we called ‘Express’ stores, or smaller Neigh- * For fiscal year 2016 ended Jan. 31, 2016, including 3,465 supercenters, 442 discount stores, 633 Neighborhood Markets and 34 equipment and wearable technology,” she said. borhood Markets,” said Greg Foran, president small-format units. To that end, the company is showcasing a and CEO of Walmart U.S., in a Feb. 18 conference Source: Company reports, DSN estimates larger assortment of organic foods and fresh veg- call. “The majority of those are in rural markets.” etables to encourage healthier nutritional choices. Instead, “we’ve got a lot to do around the per- “We opened … some 69 supercenters this “Walmart is a powerful change agent,” asserted formance of supercenters and Neighborhood [past] year and 146 Neighborhood Markets,” president and CEO Doug McMillon, offering Markets,” Foran added. “And these smaller Foran said. “Next year (fiscal 2017), we’ve got “healthier food choices for our customers.” stores don’t exactly fit our operating model of a pretty full calendar as well. I think it’s 69 su- The company also is reprising “America’s high-volume, low-margin, low-cost.” percenters and 85 Neighborhood Markets.” Biggest Health Fair” this year, following its suc- Instead, all Walmart’s store-construction Nearly every new store, Blakeman added, cess last fall. “It was the biggest one-day health firepower shifted to its primary store formats. “will offer pharmacy services.”

9 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Expanding the toolkit for independents

By Jim Frederick

Despite challenging conditions, independent pharmacy survives, and even thrives, in no small part due to the rise of powerful, multistate networks of owner-operated pharmacies. Such is the case with Cardinal Health. The distribution and health services giant — Cardinal ranks No. 26 on the U.S. Fortune 500 list — has unveiled a series of programs for the more than 8,400 independent drug stores in its service network to help them meet Medicare quality standards, boost patient adherence, improve health outcomes and foster closer links to patients. “Our health-and-wellness mission … is focused on ensuring our pharmacy customers have the right tools and resources to support their valued customers,” said Christi Pedra, SVP marketing and customer solutions at Cardinal. “We continually … explore areas such as point of care testing and transitions of care that could cy’s team to help them expand patient care by help our customers grow their business, provide remotely delivering MTM cases on their behalf.” value to patients beyond their prescriptions and Cardinal also continues its Women in Phar- Cardinal focus on patient adherence, wellness and care- macy program, “which offers expertise, in- Health giver support.” sights, coaching and … support to help female To that end, said Pedra, “we want to comple- pharmacists build business acumen needed to ment the pharmacy’s strong community pres- buy, own and operate a successful community ence and personal relationships and care with pharmacy,” said Pedra. That program “has di- the right information, products, technology and rectly assisted 20 women in the acquisition or education for the caregiver.” start-up of independent pharmacies.” The advantages of linking to a powerful ser- That group, she said, is aligned with Cardi- HQ: Dublin, Ohio vice provider like Cardinal, Pedra said, include nal’s Pharmacy Transition Services team, “which 2015 sales: $18.9 billion tapping into its expertise to help pharmacy … has years of experience helping pharmacists % change vs. 2014: 3.5% owner-operators comply with the quality rat- buy, sell and acquire community pharmacies, No. of stores: 8,400 No. of stores with Rx: 8,400 ings system adopted by the Centers for Medi- and collectively helps facilitate more than 100 Avg. store size: 2,500 sq. ft. care and Medicaid Services. “One area we are independent pharmacy transitions annually.” Rx sales: $17.6 billion especially focused on this year is helping our Cardinal also is encouraging its indepen- % of sales from Rx: 93% customers meet the standards of the CMS Star dents to join its Medicine Shoppe or Medicap Sales per store: $2.5 million ratings attached to Medicare Part D plans,” she Pharmacy franchise division. “Most recently, we Source: Company reports (excluding Medicine Shoppe and Medicap stores), DSN estimates told DSN. “We can equip them with … cus- launched a new co-branding option that allows tomizable tools for driving patient engagement retail independents to become a member of the and adherence.” Medicine Shoppe or Medicap Pharmacy fam- therapy management and immunizations, and One such tool, Pedra said, is Cardinal’s ily,” Pedra said. healthcare technology solutions, such as medi- MedSync Advantage, a turnkey medication syn- With 523 stores, the Medicine Shoppe/ cation synchronization and reimbursement chronization program. “In addition, our medi- Medicap franchise unit adds another $2 billion consultation. “These tools focus on helping cation therapy management solution can help to Cardinal Health’s independent pharmacy improve patient outcomes, while improving pharmacists strengthen their role as a trusted network. The close working relationship be- managed care performance,” Medicine Shoppe healthcare provider and meet important medi- tween Medicine Shoppe and Cardinal Health VP John Fiacco said. [For the complete Medicine cation adherence measures that affect CMS Star provides store owners with a wide range of Shoppe profile, see the DSN 2016 Yearbook edition, ratings. We serve as an extension of the pharma- cutting-edge programs, including medication coming this summer.]

10 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Focusing on patients, maintaining torrid growth

By Jim Frederick

For a host of independent pharmacy owners, the path to long-term survival and success against mega-chain competition has led to Health Mart. Since its overhaul and relaunch under parent company McKesson a decade ago, the Health Mart franchise has drawn new converts like a popular preacher at a tent revival. As of mid-March 2016, the Health Mart franchise now boasts 4,567 independently owned drug stores operating in all 50 states. “Over the past 12 months, Health Mart’s membership has grown 17%,” franchise president Steve Court- man declared. “We expect this to continue as we remain focused on helping Health Mart pharmacies remain competitive in an evolving market.” Backed by the expertise and powerful scale of McKesson, Health Mart is working a multi- pronged strategy for growth. “To help our pharmacies grow … we remain focused on three critical areas to achieving profitability: gaining access best clinically and implement innovative busi- to preferred networks with top clinical perfor- ness practices that support efforts to increase Health Mart mance, bringing patients to their stores and ex- medication adherence, deliver quality patient panding services for added revenue,” Courtman care and get credit for the outcomes they drive,” said. “We’re providing our independent pharma- Courtman told DSN. cies an approach that helps them transition their One highly visible point of that spear is the business from transaction-based dispensing to a Health Mart Healthy Living Tour, a specially model focused on profitability through enhanced equipped bus containing a 40-foot diagnos- patient interaction and better patient outcomes.” tic unit and a professional staff providing free One way, said Courtman, is through appoint- screenings around the country for blood pres- HQ: San Francisco ment-based medication synchronization, which sure, diabetes, cholesterol and obesity. The tour, 2015 sales: $10.3 billion he called “a game changer” for independent launched six years ago, “encourages consumers % change vs. 2014: 15% No. of stores: 4,567 pharmacy, allowing them to focus on patient to initiate healthcare conversations with Health No. of stores with Rx: 4,567 care, as well as improve their profitability. Mart pharmacists,” the company reported. Avg. store size: 2,500 sq. ft. “Med Sync allows independent pharmacies The franchise chain’s secret sauce is the abil- Rx sales: $9.5 billion to improve efficiency and increase capacity with- ity of its pharmacists, as independent owners, to % of sales from Rx: 92% out adding staff,” he said. “They have the time build and maintain a level of trust with hundreds Sales per store: $2.3 million to uncover causes of patients’ nonadherence and of their patients. “I want the service that we pro- Source: Company reports, DSN estimates then address them with MTM and provide other vide to make us unique,” said Craig Lehrman, services that generate additional revenue and im- owner of Tepper Pharmacy in Wynnewood, Pa., ment, wound care and the fitting of compres- prove patient outcomes.” 1-of-10 U.S. pharmacies to win a Health Mart sion stockings for diabetics. Its pharmacists also Med Sync, Courtman added, “is not the end Community Healthcare Excellence Award in manage medications for local long-term care goal but rather a vehicle to enable our pharma- 2015. “The personal interactions we have with facilities and dialysis centers. cies to transition their business model from our customers is what makes us stand out.” “Health Mart pharmacies fill a gap in today’s prescription-based to patient-based profits by To that end, Tepper like most Health Mart lo- busy healthcare system by providing broader ac- extending their patient-centric approach to the cations, administers vaccinations and offers free cess to clinical services and medication counsel- entire pharmacy.” delivery — in its case, anywhere in the Phila- ing, and our pharmacists often serve as the first “Ultimately, the foundation of Health Mart’s delphia metro area. But the store’s staff also point of care,” said Chuck Wilson, Health Mart strategy is to help our members perform their includes an expert in durable medical equip- VP operations.

11 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Kroger extends lead in supermarket pharmacy

By Jim Frederick

With 8.5 million customers shopping at its stores every day, newly acquired regional chain Roundy’s adding market muscle in the upper Midwest, and its food and drug sales reaching new heights, Kroger is head and shoulders above its competitors as the undis- puted champion of supermarket industry retailing. Only Walmart sells more groceries. Kroger chairman and CEO Rodney McMul- len called the company’s recent performance “outstanding,” noting that Kroger “delivered on our performance targets, grew market share … and continued to expand our use of technology to drive growth.” Kroger announced its merger agreement with Milwaukee-based Roundy’s in No- vember. The deal added both market share and additional expertise in urban food and drug marketing. “The merger of Roundy’s brings to Kroger main in Milwaukee, ” Kroger stated. new expertise and management experience in With the acquisition, Kroger bolstered the operation of urban supermarkets and in- its pharmacy position with 2,231 pharma- Kroger store pharmacies,” Kroger stated. “Roundy’s cies across its many regional operating ban- brings … a complementary base of 151 stores ners, which together comprise 2,774 stores and 101 pharmacies in new geographies, in- in 35 states and the District of Columbia. In cluding Milwaukee, Madison and Northern fiscal 2014, “Kroger pharmacists filled al- Wisconsin, which are served under the Pick ‘n most 175 million prescriptions at a retail Save, Copps and Metro Market banners.” value of approximately $9 billion,” the com- “The merger also expands Kroger’s pres- pany reported. ence with an innovative store format in the Kroger also operates Axium Healthcare HQ: Cincinnati Chicagoland area, where Roundy’s operates Pharmacy, a specialty pharmacy acquired in 2015 sales: $109.8 billion 34 stores under the Mariano’s banner,” the 2012, and a growing network of 200 retail clin- % change vs. 2014: 1.2% No. of stores: 2,778* company reported. Roundy’s had revenues of ics under The Little Clinic banner. “Currently, No. of stores with Rx: 2,231 nearly $4 billion in fiscal 2014. The Little Clinic operates in nine states under Avg. store size: 63,000 sq. ft. “Mergers for Kroger always involve both the Kroger, King Soopers, Fry’s and JayC ban- Rx sales: $9.2 billion parties bringing something to the table,” Mc- ners,” the company reported. The clinics com- % of sales from Rx: 8.3% Mullen said. “We admire what [Roundy’s prise “one of only two retail clinic organiza- Sales per store: $41.8 million chairman, president and CEO] Bob Mariano tions nationally that is accredited by The Joint *Includes 151 acquired Roundy’s stores, of which 101 have pharmacies Source: Company reports, DSN estimates has done with the Mariano’s banner in Chica- Commission on Healthcare Quality,” Kroger go, where he has created an urban format that proudly announced. is resonating with customers. We expect to ap- On the pharmacy side, Kroger has expand- sive education and management programs, ply Roundy’s experience to our stores in urban ed its health-and-wellness service menu with such as diabetes and heart-healthy coaching, areas around the country.” health screenings, vaccinations for a grow- diabetes self-management education, fitness, Roundy’s will continue to operate as a sub- ing number of diseases and personal health nutrition and weight management, and smok- sidiary of Kroger and will continue to be led coaches trained to help customers reach their ing cessation.” by some of Roundy’s senior managers, the wellness goals. To achieve what it calls “a ho- Those efforts won Kroger a Pinnacle Award company reported. “There are no plans to listic, personalized, quality health experience from the American Pharmacists Association close stores. Roundy’s headquarters will re- to our patients,” the company offers “inten- Foundation in September.

12 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Elevating the community pharmacy network

By Michael Johnsen

This has been a big year for Good Neighbor Pharmacy. In the past year, Good Neighbor Pharmacy launched a comprehensive pharmacy network — the Elevate Provider Network — that really lives up to its name. But that’s not the only thing that has gotten the company excited about what’s happening in the stores today. “We’re going to the manufacturers, and we’re talking about helping to support advertising and promotional programs in exchange for preferential positioning on their products,” Dave Neu, president GNP and EVP retail strategy at AmerisourceBergen, told Drug Store News. A 20-store pilot test of this concept has done really well, Neu said, and now it’s time to take this offering to the next level — a 200-store pilot with an anticipated full launch by the end of the year. “What we’re really doing is walking the talk here to help [our operators] be merchants, improve their front-end margin, drive additional discussions with payers — a key pain point for revenue and give them access to tools that when anyone in retail pharmacy, and especially for they advertise they really have impact.” independents. The new network also supports Good Neighbor Front-end is just one of the pillars ABC has the ongoing transition from a fee-for-service Pharmacy crafted to really buttress the success of the retail model to an outcomes-based model, and helps pharmacy businesses with whom they’ve part- operators manage their business more efficient- nered. The business coaches ABC deploys across ly and effectively. the nation are another key differentiator that Highlights of the new service include: help steel Good Neighbor Pharmacy owners for • A new patient engagement center, powered operational success. That program is led by Jen- by PrescribeWellness, that independent nifer Zilka, Good Neighbor Pharmacy national pharmacies can leverage to drive adher- HQ: Valley Forge, Pa. director of business coaching and pharmacy ence and enhance patient care, ultimately 2015 sales: $8.5 billion ownership, who is helping drive significant re- creating the potential to improve CMS Star % change vs. 2014: 4.9% No. of stores: 4,800 sults at the store level — stores are increasing ratings and increase reimbursement; No. of stores with Rx: 4,800 their inventory on average by 1.4 turns. And • Access to pre- and post-claims editing Avg. store size: 2,500 sq. ft. from a labor standpoint, coached stores realize services through Change Healthcare, a Rx sales: $8.3 billion a 5% increase in sales-per-employee on average. leading provider of revenue and payment % of sales from Rx: 97.1% AmerisourceBergen unveiled its Elevate Pro- cycle management, which will help reduce Sales per store: $2.9 million vider Network officially on Oct. 1. “The implica- claim errors, improve pharmacy profits Source: Company reports, DSN estimates tion of the size of the preferred networks, as these and provide greater transparency into networks get more competitive and it puts pres- payer reimbursement; ing view, allowing pharmacies to measure sure on reimbursement in general, we have to, • An expansion of its central pay capabili- performance against similar stores; and as AmerisourceBergen and specifically as Good ties with the addition of claim reconcili- • A new mobile application that will notify Neighbor Pharmacy, we have to be at the table ation services powered by FDS, which pharmacists of key information they need in a meaningful way,” Neu said. “That’s why the enables pharmacists to monitor their re- to manage their business at the touch of a strategy of Elevate was so important, and that’s ceivables balance; finger, such as the next day’s bank deposits why I think it’s had such a strong response.” • A revamped InSite pharmacy performance and a six-month trending view of their per- The new Elevate Provider Network lever- tool that will now include front-of-store formance in the four highly-rated CMS Star ages centralized data to support reimbursement sales data displayed in its peer benchmark- clinical measures.

13 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Forging stronger health links

By Jim Frederick

It’s been more than a year since the merger of Albertsons and Safeway was finalized in January 2015. Since that momentous marriage of near-equals — both with strong pedigrees and a solid base of millions of loyal customers — Albertsons Companies has built new and stronger links between its 1,738 in-store pharmacies and its increasing focus on healthy nutritional options in the food aisles of its more than 2,200 stores in 35 states. As a condition of the merger, Albertsons and Safeway agreed to sell 168 stores in eight western U.S. states, the bulk of them (146 supermarkets, including 90 units with pharmacies) to Belling- ham, Wash.-based Haggen Holdings. But in March of this year, Albertsons applied to buy 29 of Haggen’s core stores — including 14 supermarkets Haggen bought from Albertsons in 2015 — following Haggen’s move into bankruptcy. Albertsons also began laying the ground- “Health and wellness reaches well beyond the work to become a publicly traded company. pharmacy and further into a traditional grocery Last July, the company registered for an initial store,” Panzer said. “As customers move to take Albertsons/ public offering, now pending. more control of their health care, retailers need to Safeway Last September, Albertsons took another big pivot quickly to support their diverse needs.” step by shifting supply responsibility for ge- Albertsons also has strengthened its mission neric and branded pharmaceuticals for all its and message as a provider of both health-and- pharmacies to McKesson. wellness services and nutritional advice. Outsourcing the company’s drug supply Jenny Rapley, head of pharmacy commu- functions allows Albertsons “to benefit from nications, said, “we can’t state enough how the scale and strength of McKesson’s propri- proud we are to offer our customers the ben- HQ: Boise, Idaho etary OneStop generics program and efficien- efit of the entire supermarket for their health- 2015 sales: $55 billion cy of McKesson’s daily direct-to-store service and-wellness needs. We provide … services % change vs. 2014: NA No. of stores: 2,200 model for pharmaceutical products,” the com- ranging from diabetes programs that include No. of stores with Rx: 1,738 pany reported. The agreement, which took ef- food counseling and store tours with regis- Avg. store size: 48,500 sq. ft. fect April 1, extends through April 2021. tered dietitians, to education from pharmacists Rx sales: $5 billion “We’ve worked with McKesson for several about blood glucose control and opportunities % of sales from Rx: 9.1% years, and they’ve consistently proven to us that to receive health screenings for A1C, choles- Sales per store: $24.7 million they are a partner who can respond quickly to the terol and blood glucose — in addition to our Source: Company reports, DSN estimates wide variety of prescriptions we receive,” said walk-in immunizations, such as flu shots [and] Albertsons chairman and CEO Bob Miller. “We’re back-to-school and travel vaccinations.” education and options through our pharmacy excited that our expanded relationship … will al- Albertsons, Rapley added, “strives to maxi- teams and throughout the entire store to empow- low us to continue delivering convenient solu- mize the scope of pharmacist practice allowed by er customers when making important health- tions for every customer’s prescription needs.” states that we operate in, such as prescribing and and-wellness decisions. On the management front, Albertsons beefed furnishing birth control and offering smoking “We feel people know themselves best,” Ra- up the critical role played by Mark Panzer, SVP cessation services.” pley said. “We’re here to answer their questions pharmacy, health and wellness. In February, Pan- To that end, she told DSN, Albertsons’ phar- and provide health services and products so our zer also was given leadership responsibility for macists are working “to create partnerships with customers benefit from a collective approach to general merchandise and health and beauty aids. our customers to … provide services, products, being and staying healthy.”

14 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report AAP gains higher profile with deals

By Jim Frederick

Seven years after its formation through the merger of two big independent pharmacy co- operatives, American Associated Pharmacies is making bold moves and jostling for a bigger share of the U.S. pharmacy market. AAP director of marketing Emily Marino called 2016 “an exciting year for AAP,” as the big pharmacy cooperative begins to harvest the fruits of a promising new alliance with pharmaceutical wholesaler H.D. Smith, prepares to significantly grow its retail footprint through a major acquisition and launches its own specialty pharmacy. AAP struck its groundbreaking agreement with H.D. Smith, the nation’s largest privately held national drug wholesaler, in February. The alliance effectively combines the two companies’ respective pharmacy services administrative organizations into a single, stand-alone PSAO entity, servicing more than 2,300 independent pharmacies across the United States. ers,” McMahan added. Under the terms of the deal, the AAP PSAO, Health industry expert Adam Fein, president United Drugs and the PSAO operated by H.D. of Pembroke Consulting and CEO of Drug Chan- AAP Smith, Third Party Network, combined to form nels Institute, endorsed the wisdom of the Arete a new entity, Arete Pharmacy Network. Accord- deal in a Drug Channels report. “If a small phar- ing to Marino, Arete “will be the fourth-largest macy wants to win in today’s consolidating drug PSAO in the country” after those operated by the channel, it needs scale or differentiation,” he not- Big Three wholesale drug giants, McKesson, Car- ed. “PSAOs let pharmacy owners appear bigger dinal Health and AmerisourceBergen. without giving up control of their businesses.” “The PSAO will combine independent phar- Indeed, Fein asserted, “I view PSAOs as a key macies nationwide into a strong network that reason why pharmacist-owned independents re- HQ: Scottsboro, Ala. will deliver a high quality performance net- main an important industry segment. PSAOs are 2015 sales: $5.3 billion work, working with PBMs, plans and payers,” crucial for smaller pharmacies that want access to % change vs. 2014: 1.7% No. of stores: 2,141 said AAP CEO Jon Copeland. “We expect Arete preferred network models, with such payers as No. of stores with Rx: 2,141 Pharmacy Network will help provide greater the Medicare Part D program. Avg. store size: 2,000 sq. ft. outcomes for independent pharmacies, which The creation of Arete was the opening salvo Rx sales: $4.9 billion will enable patients to receive the superior care in what looks to be an aggressive new expansion % of sales from Rx: 92% they deserve.” and improvement campaign by AAP. Fast on the Sales per store: $2.5 million United Drugs president Rob McMahan was heels of the Arete venture came an announce- Source: Company reports, DSN estimates tapped to become CEO of the new Arete PSAO. ment in March that AAP would acquire Partners He said both companies “approached this busi- in Pharmacy Cooperative. Marino said the acqui- and compete with large chains, all without the ness opportunity with the goal of helping phar- sition “fits within AAP’s growth strategy and so- investment in inventory, systems or personnel,” macies improve Star ratings and other quality lidifies its position as a leader in the independent said Marino. metrics by joining together and gaining efficien- pharmacy cooperative market.” “With the creation of Arete Pharmacy Network cies of scale.” That buyout was followed shortly by the and AllyScripts and the acquisition of PIPCo,” “This partnership allows each of us an ex- launch in April of AllyScripts, AAP’s own spe- she added, “AAP has strongly positioned the panded presence throughout the United States cialty pharmacy. “AllyScripts will allow indepen- company to strengthen the independent phar- and enhanced capabilities that will make us a dent pharmacies to retain patients, provide spe- macy’s influence in the marketplace and capture partner of choice for PBMs, plans and other pay- cialty services and products from their pharmacy, higher-growth opportunities in 2016.”

15 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

‘Broad-based’ approach key to Diplomat’s growth

By David Salazar

Between two acquisitions, filling more than 900,000 prescriptions and an expanded list of offerings for patients, Diplomat Pharmacy spent much of 2015 growing its business from several different angles — expanding its store footprint and technological offerings along the way. “Our growth in 2015 was broad-based and driven by all aspects of our business as we grew volume from existing drugs, continued to win access to important new specialty drugs and made two acquisitions to further strengthen our position across multiple disease states,” Diplomat CEO and chairman Phil Hagerman told DSN. By this time last year, the company had closed its $384 million cash-and-stock acquisition of BioRx, a move that expanded Diplomat’s infusion services, as well as its ability to provide highly specialized care to patients with ultra-orphan and rare, chronic diseases. And by summer 2015, Diplomat had purchased Burman’s Specialty Hagerman said. “eNAV is built around specific Pharmacy, a move that expanded the treatments drug therapies and disease states for greater con- the company offers to hepatitis C patients, as well sistency of care using clinical algorithms. Each Diplomat as its footprint and technological capabilities. step within the patient’s treatment algorithm has “We acquired Burman’s to enhance our tar- been extensively researched from various dis- geted clinical management programs, utilize its ease guideline publishers. … Further, our suite of innovative hepatitis C technology platform and business intelligence and reporting tools are de- strong payer network, and increase our presence signed to offer partners insights into patient care in the U.S. mid-Atlantic region,” Hagerman said. and waste-management opportunities.” “Our integration created further cross-selling op- Diplomat also is focused on offering access to portunities around Crohn’s disease and other newly approved specialty drugs. In 2015, that HQ: Flint, Mich. therapies, as well as in review of their selling meant bringing patients more than a dozen drugs 2015 sales: $3.4 billion services, their on-boarding capabilities and their following approval, including various limited- % change vs. 2014: 52% No. of stores: 16* therapy management platform; we moved to roll distribution drugs and the exclusive distribution No. of stores with Rx: 16* these into Diplomat core operations for further of Taro’s Keveyis, a treatment for a group of rare Avg. store size: 5,390 sq. ft. care optimization.” hereditary disorders. Rx sales: $3.4 billion The technology integration is part of Diplo- “We are well diversified in high growth thera- % of sales from Rx: 100% mat’s ongoing efforts to improve its technologi- peutic classes, and the robust drug pipeline con- Sales per store: NA cal infrastructure, and Hagerman said that Dip- tinues to complement our core strengths and will *Diplomat also operates 19 specialty infusion sites. Source: Company reports, DSN estimates lomat would continue to invest in proprietary fuel further growth,” Hagerman said. “Accord- technology and roll out new phases of existing ing to PhRMA’s 2015 Industry Profile, there are technology — an example of which is its eNAV over 7,000 drugs in development right now, 75% toward targeted therapies for smaller patient patient care system, which automates tracking of these drugs are focused on oncology, immu- populations — both of which he said offers Dip- and development of clinical interventions and of- nology, infectious disease and neurological dis- lomat the opportunity to focus on its partners fers real-time access to patient information. orders, which overlap with our core therapeutic and patients. “We believe these investments will give us the areas and bode well for our future growth.” “We place tremendous importance on a cus- best patient care application and the best abil- As the year goes on, Hagerman said he ex- tomized approach to managing specialty pa- ity to capture the data our constituents need for pected trends seen in 2015 to continue, including tients, drugs and disease states and will continue transparency of care and patient management,” the extensive specialty pipeline and a tendency to do so in 2016,” Hagerman said.

16 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Ahold emerges as bigger player in specialty pharmacy

By Richard Monks

With its $11 billion merger with Delhaize on track to be completed in mid-2016, Ahold USA will emerge as a much bigger player, both in the supermarket channel, as well as the U.S. retail pharmacy market. When the deal is finally done, the new company will number some 2,000 stores in total, with about 825 pharmcy counters — excluding store divestitures. The company is expected to close or divest some 83 stores to satisfy regulators. In the meantime, the company remains sin- gularly focused on driving customer convenience. “Our patients are balancing busy work schedules with after-school activities, while trying to find a little time left over for themselves,” VP pharmacy Brad Dayton said. “For these time-starved customers, we eliminate the extra trip to the drug store and allow them to fill their prescriptions where they shop for groceries.” Ahold USA’s pharmacies play an important dition. Each of the company’s pharmacies role in each of the company’s four divisions has a trained diabetes care pharmacist on and are vital healthcare providers in the com- staff, and free blood pressure, glucose and Ahold USA munities they serve, Dayton said. As the way cholesterol screenings are offered in about health care in the United States is dispensed 80 pharmacies. continues to change, the role these pharmacies “Screening events like these help identify play in patients’ lives is also shifting. individuals who may be affected and give Growth in patient self-management tech- them the opportunity to manage their condi- nologies and the ongoing shortage of primary tion early when diet and lifestyle changes will healthcare providers are having an especially be most effective,” he said. “Participants leave significant impact on Ahold USA, he said. these events with a better understanding of HQ: Carlisle, Pa. The company is taking advantage of the their risk for heart disease and diabetes, and, 2015 sales: $44.2 billion technology trend by maximizing its use of com- in many cases, we refer them to see their physi- % change vs. 2014: NA No. of stores: 2,088 puter- and smartphone-based systems to help cians if their numbers are high.” No. of stores with Rx: 772 patients manage their health. “Patients want to This year, Dayton said, Ahold USA expects Avg. store size: 41,400 sq. ft. (Ahold USA stores); 33,900 be able to order refills, check interactions, chat to expand the free screenings program to more sq. ft. (Delhaize America stores) with a pharmacist when and where it’s conve- stores and expand the range of specialized ser- Rx sales: $3.0 billion nient for them,” Dayton said, explaining that vices it offers to include pre-travel health con- % of sales from Rx: 6% Sales per store: $21.2 million an overhaul of Ahold USA’s dispensing sys- sults and programs that capitalize on its exper- Note: Includes results for Ahold USA stores and acquired Delhaize tem completed in December has helped make tise in the grocery sector. America stores it easier for patients to access these services. “In a supermarket setting, we have access Source: Company reports, DSN estimates With the Affordable Care Act providing to a variety of vendors who share our desire more people with health insurance and swell- to promote community health and wellness,” ule that provides the company’s pharmacists ing physicians’ workloads, more patients are he said. “And. we’re fortunate to have an ever- with practical nutritional advice that they can turning to pharmacists for health services. growing stable of nutritionists in the stores and incorporate into conversations with patients With an estimated 29 million Americans at the corporate level. We’re leveraging their about heart disease and diabetes. In addition, having diabetes and another 86 million suf- expertise in some unique ways.” nutritionists and diabetes care pharmacists fering from prediabetes, Ahold USA has For example, the company’s nutritionists have teamed up to offer diabetes manage- stressed helping patients manage this con- recently created a Web-based learning mod- ment classes.

17 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Refining the business of pharmacy

By Michael Johnsen

Costco’s pharmacy operation is increasingly focused on supporting the kind of clinical efforts that would make the club channel pharmacy operation a sought-after partner for health systems looking to improve their Star ratings. “A lot of 2015 has been working on initiatives relative to Star ratings, medication therapy management and participation in those types of things,” Michael Mastromonica, AVP pharmacy operations, told Drug Store News. Not because those initiatives are significant revenue drivers, he said, but because it’s those initiatives that are helping to refine what the business of pharmacy means for managed care partners. Today, not only is Costco successfully raising the bar on its pharmacy operations, but the club operator is looking to ramp up its focus on pharmacy in the years ahead. Ultimately, the opportunity for a big-box operator — grocery, club or mass — is educating apart from the competition. “Without question the consumer about the convenient pharmacy it puts you into a positive space there if you within the same box, with pharmacists ad- can create some sort of one-to-one relationship Costco ept at counseling patients and a value-driven with [the patient],” he said. front-end OTC and natural health product se- In 2015, Costco started laying the ground- lection. Costco has traditionally generated that work toward these types of initiatives and will awareness through health screenings driven at continue to push toward becoming a pharma- the club level, Mastromonica said. cy partner focused on outcomes and patient Costco’s 471 pharmacy teams has organized management strategies. For example, Costco hundreds of health events each year, offering started hosting diabetes-themed health screen- screenings for osteoporosis, heart and lung ing events in late 2015 thanks to the falling HQ: Issaquah, Wash. health. Each Costco region in the United States costs of administering an A1C blood glucose 2015 sales: $84.4 billion* hosts approximately six events each year. test — a more clinically relevant measure of % change vs. 2014: 5% No. of stores: 480* Moving forward, Costco will be shifting optimum blood-glucose management. No. of stores with Rx: 471* its pharmacy operations focus to incorporate Meanwhile, as Costco continues to advance Avg. store size: 143,800 sq. ft. more of the managed care and improved out- its clinical program, the company also is tak- Rx sales: $2.5 billion comes business model that the entire indus- ing some other — more quiet — steps to help % of sales from Rx: 3% try is gravitating toward, Mastromonica said. improve the lives of its members. According to Sales per store: $175.7 million Costco has tapped Becky Dant, director pro- published reports, the company has removed * U.S. operations for fiscal year ended Aug. 30, 2015 Source: Company reports fessional services for Coscto Wholesale Phar- tobacco products from about 300 stores, al- macy, to help guide that initiative. “Her focus though the move seems largely business-re- has been on this managed clinical environment lated. “Tobacco is a very low-margin business, with local physicians. Initially implemented of MTM capabilities and Star ratings improve- tends to have higher theft and is labor inten- across 15 stores, that program has proven suc- ments, and what we can to at the pharmacy sive in some cases, a company spokesman cessful and is being expanded to as many as level [to that end],” Mastromonica said. told The Street in March. “Further, we thought 80 locations across Southern California, Mas- Clinical screening initiatives, immunization we could better use the space to merchandise tromonica said, with the goal of implementing programs, increased compliance directives other items.” a travel vaccination program in every state and medication synchronization is how retail On another front, Costco started piloting where Costco operates that supports that kind pharmacies of tomorrow will set themselves travel vaccination programs in conjunction of program.

18 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Publix expands northward, champions wellness

By Jim Frederick

The Florida panther of supermarket pharmacy retailing is on the prowl. Lakeland, Fla.-based Publix Super Markets is branching out, both geographically and in the exploding market for pharmacy-based health and wellness services. And those inroads are occurring in the midst of strong sales and earnings. In February, Publix gained its first foothold in Virginia — its seventh state of operations — by signing leases for stores in Bristol and Glen Allen, a northern suburb of Richmond. The Bristol store is set to open in fall 2017, followed by the Glen Allen store in 2018. The 1,110-store chain “is looking ahead to aggressive growth within the state and in its current operating areas of Florida, Georgia, Alabama, Tennessee, [and] South and North Carolina,” said CEO Ed Crenshaw. Crenshaw revealed plans to retire April 30. True to the company’s promote-from-within biometric screenings at all 983 of the company’s philosophy, his successor as president and in-store pharmacies. “The screenings, offered to CEO, Todd Jones, began his Publix career in those 18 years and older, will help patients un- Publix 1980 as a front-store service clerk and rose derstand their risk for developing chronic con- through the ranks to become president in 2008. ditions,” according to Brous, and are “an addi- Publix is the nation’s largest employee-owned tional service we provide … to build on a strong food and drug retailer, and that link between relationship between patient and pharmacy.” company performance and the financial well-be- Results of the screenings are available with- ing of its more than 179,000 employees — many in minutes, she noted, and are accompanied by with skin in the game through ownership of pri- a pharmacist’s consultation. vately traded company stock — could be a big “Results from the biometric screenings will HQ: Lakeland, Fla. factor in its steady growth and profitability. be kept on file so that the Publix pharmacist 2015 sales: $32.4 billion The chain notched a milestone on the phar- may refer back to previous screenings to iden- % change vs. 2014: 5.9% No. of stores: 1,110 macy side of its business in 2015 by filling its tify changes and trends in the patient’s overall No. of stores with Rx: 983 50 millionth free prescription since the launch health,” Brous explained. Avg. store size: 28,000 sq. ft. to 61,000 sq. ft. of its no-cost antibiotic program in 2007. The screenings are in line with a broad effort Rx sales: $2 billion Among the free meds dispensed are a range by Publix to “provide our customers with the % of sales from Rx: 6.1% of antibiotics like amoxicillin, ampicillin and convenience of a one-stop destination for all Sales per store: $29.2 million ciproxfloxacin (excluding ciprofloxacin XR), their health-and-wellness needs,” said Brous, Source: Company reports, DSN estimates along with diabetic treatment metformin and with “a level of service that goes above and lisinopril for high blood pressure. beyond filling prescriptions” with additional the program in 2014, giving potential candi- Publix spokesperson Maria Brous said the services like vaccinations, low-cost screenings, dates selected through its pharmacy software giveaways help its customers overcome “the synchronized prescription refills and medica- the opportunity to sync up their script refills financial barrier to taking their medications tion therapy management. and ongoing pharmacist consultations with a as prescribed.” Publix also continues expanding its ap- monthly pickup. “We’ve continue to enhance our free prescrip- pointment-based model as a way to improve “By knowing when the customer will be tion program to allow our customers to focus on patients’ adherence rates and enhance the coming in for their appointment,” said a Pub- … achieving their wellness goals,” she added. pharmacist-patient relationship with regularly lix spokesperson, “the pharmacist can prepare Last year also saw the chainwide rollout of scheduled consultations. The chain launched for patient engagement.”

19 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report ‘Making healthier life easier’

By Jim Frederick

When most American consumers think “warehouse club store,” the first thing that comes to their mind is probably not “health- and-wellness destination.” The merchants on the pharmacy and health side of Sam’s Club are out to change that. “Our mission is to be a full service healthcare destination offering healthy solutions to our members through value, member service and relationships with our healthcare providers,” said Jill Turner-Mitchael SVP of consumables and health and wellness. With 613 of its 653 U.S. club stores now dispensing prescriptions and a full range of pharmacy services, and backed by the might of corporate parent Wal-Mart Stores, Sam’s Club already has the scale, reach and purchasing clout to be a national force in pharmacy. The chain leverages those assets in part by offering its pharmacy customers the kind of discounts Raddohl noted, “to provide quality health they expect from a wholesale club, along with insurance coverage with exclusive benefits to an expanding menu of free or low-cost health- our business members, their employees and Sam’s Club and-wellness initiatives. their families in an … online shopping experi- “Our pharmacies provide savings and pre- ence known as the Aetna Marketplace.” ventive care to each community we serve, in- Sam’s Club also significantly expanded its cluding year-round immunizations for adults selection of green-tagged healthier food options and children,” company spokesperson Tara in 2015. “Last year, we more than doubled our Raddohl said. In addition, she said, “Sam’s organic portfolio,” the company reported. Club offers one of the most comprehensive “Our mission is to be a total health-and- free health screening programs of any retailer, wellness destination, so we’re proud that our HQ: Bentonville, Ark. which is open to members and the public.” members can find healthy solutions in every 2015 sales: $56.8 billion* % change vs. 2014: -2.1% Turner-Mitchael added, “the free health corner of the club,” Raddohl said. “In addition No. of stores: 653 screenings are also part of our mission to be a to our pharmacy offerings, Sam’s Club has the No. of stores with Rx: 613 total health-and-wellness destination.” majority of products that our members need to Avg. store size: 133,000 sq. ft. Building on its discount and value message, live a healthy life.” Rx sales: $1.9 billion the company launched an expanded prescription This year, Sam’s Club will open nine to 12 % of sales from Rx: 3% Sales per store: $87 million savings program in 2015 “that enables eligible new and relocated club stores, according to * For fiscal year 2016 ended Jan. 31, 2016 Plus [loyalty program] members to save even Walmart, and renovate at least 55 clubs. “All Source: Company reports, DSN estimates more money on generic prescriptions, some of new club openings in 2016 will include a phar- which are available free of charge or at a discount- macy,” Raddohl told Drug Store News. ed cost of $4 or $10 for a 30-day supply,” Raddohl Sam’s Club’s heavy presence in gasoline membership “more rewarding,” said Walmart said. “This benefit is exclusively available to Plus exposed the company to last year’s collapse president and CEO Doug McMillon, with “val- members in addition to the Sam’s Club Extra of fuel prices. The plunge weighed on total ue-added benefits … like Plus Cash Rewards,” Value Drug List, through which Sam’s Club Busi- revenues, which fell 2.1% to $56.8 billion for by offering “merchandise excitement … to drive ness and Plus members also receive 10% to 30% the fiscal year ended Jan. 31, 2016. Excluding sales” and by strengthening “digital integration savings on select brand-name medications.” results of its fuel stations, however, U.S. same- with clubs through initiatives like Club Pickup,” As another cost-saving service to its mem- store sales actually ticked up 0.4%. a service that allows members to order products bers, Sam’s Club also collaborates with Aetna, Meanwhile, the company is working to make digitally and pick them up curbside.

20 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Providing customers the best of both worlds

By Richard Monks

Two decades of consolidation and the prolif- eration of pharmacies across multiple trade classes has left many consumers feeling that it doesn’t matter where they get their prescriptions filled. Not so, said the executives at Cardinal Health’s Medicine Shoppe and Medicap unit. “Our patients realize they are much more than another prescription customer,” Medicine Shop- pe VP John Fiacco said. “Our pharmacies provide a level of service that is very difficult to duplicate in a larger pharmacy.” That service, he stressed, comes from Medicine Shoppe’s business model. A network of 523-fran- chised stores, the 411 units operating under the Medicine Shoppe banner and the 112 that carry the Medicap name are independently owned and operated, providing pharmacists with a sense of pride that often can be absent at chains. “Patients are attracted to the Medicine Shoppe and Medicap pharmacies because they enjoy the Outcomes Program, pharmacist/owners get the personal recognition and care that they receive in tools they need to engage patients in open com- our pharmacies,” Fiacco said. “There is comfort munications about their medications and any Medicine in knowing that their health is in the hands of side effects they are experiencing. Shoppe someone they know and trust.” Fiacco stressed that being associated with a Being part of a franchise system, he said, gives healthcare giant like Cardinal has helped store store owners the best of two worlds. Their stores owners keep patient care the centerpiece of their operate under banners that are recognized from businesses. The close working relationship be- coast to coast, but they are free of corporate dic- tween Medicine Shoppe and Cardinal also has tates and can, for the most part, make their own provided store owners with a wide range of cut- business decisions. ting-edge healthcare technology. HQ: Dublin, Ohio 2015 sales: $2 billion Most importantly, Fiacco noted, Medicine Fiacco said Cardinal Health continues to de- % change vs. 2014: 0.1% Shoppe and Medicap franchisees have access to velop cutting-edge solutions — including a man- No. of stores: 523 a wide range of programs and services that help aged care dashboard that can help pharmacists No. of stores with Rx: 523 them to level the playing field. incorporate patient care into their business mod- Avg. store size: 2,500 sq. ft. “As part of a franchise system, our members els and keep it at the forefront of their practices. Rx sales: $1.9 billion % of sales from Rx: 93% enjoy both the benefit of being part of an elite “We have excellent technology initiatives, Sales per store: $3.9 million group of pharmacies known by both patients and such as MedSync Advantage and Cardinal Source: Company reports, DSN estimates payers for patient-centered care, and the support Health’s Reimbursement Consulting Services’ they need to be successful,” he said. “Our tools dashboard,” he said. “Both of these tools focus on and advice enable members to build their own helping improve patient outcomes while improv- on its laurels. business and improve the well-being of their ing managed care performance. Both of these “We feel very strongly that independent phar- communities. Medicine Shoppe and Medicap tools focus on helping improve patient outcomes, macies will survive and thrive in the future,” he stores go beyond dispensing to help patients while improving managed care performance.” said. “That doesn’t mean that they won’t have to manage — and improve — their health.” Begun with a single pharmacy in St. Louis in evolve their practice and their business as health For instance, he said, almost all of the pharma- 1968 and part of Cardinal since 1995, Medicine care evolves, but the independent pharmacist cies offer medication therapy management and Shoppe is seen by many industry watchers as a is uniquely situated to provide the care and the immunizations. By participating in programs shining star of the independent pharmacy model. services that are needed by their patients and such as The National Medication Safety and However, Fiacco said the company is not resting the payers.”

21 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Serving up health solutions

By Jim Frederick

Serve millions of customers well for more than a century, and they reward you with instant name recognition and fierce loyalty. Such is the case with H-E-B. Now in its 106th year, the San Antonio-based, 371-store chain has become synonymous with supermarket and pharmacy retailing in Texas and parts of Mexico. In 2015, H-E-B ranked No. 1 out of 293 companies in the Tempkin Trust Rating, which rates the trust consumers have in companies across 20 in- dustries. The company also ranked No. 2 among 294 companies in Tempkin’s customer experience ratings for 2016. More than ever, H-E-B’s managers are blend- ing pharmacy-based health-and-wellness services with guidance on fitness and healthier nutritional choices. “H-E-B is the only retailer in Texas offering nutrition consultations by our registered dietitians covered by most major insurance plans, including Medicare and Medicaid,” the company according to the company. “The showdown be- reported. What’s more, many of its stores include gins in San Antonio with an intensive seven-day a Solutions Center that provides “health tips for wellness program known as Fit Camp, complete H-E-B kids and family, heart health, pharmacy services, with fitness and nutrition training, cooking les- weight management, diabetic resources and sons, meal training and more.” what’s trending in healthy news.” The program doesn’t end after the seven-day H-E-B also encourages its pharmacists to camp. “Upon returning home, contestants re- spend time with patients in the store, particularly ceive coaching and support from H-E-B’s reg- in the “Keeping Texans Healthy” department, in istered dietitians, past contestants and wellness front of the pharmacy. coaches,” said a company report. “At the halfway During its Second Saturday health screenings, mark, contestants … receive a midpoint screen- HQ: San Antonio certified screeners provide free or low-cost tests ing and reconnect with their personal fitness and 2015 sales: $23 billion on the second Saturday of every month for blood nutrition experts to receive additional hands-on % change vs. 2014: 8.5% No. of stores: 371* pressure, blood glucose, cholesterol and A1C. cooking, meal planning and fitness training.” No. of stores with Rx: 260 H-E-B has enlisted support for the events from Companywide, H-E-B made some signifi- Avg. store size: 68,000 sq. ft. several vendor/sponsors, including Kraft Foods, cant advances over the past 12 months. One Rx sales: $1.7 billion H.J. Heinz and Clorox. Also popular are H-E-B big step was the unveiling of a stock-ownership % of sales from Rx: 7.4% Healthy Living events, which feature free screen- plan for 55,000 eligible employees, who were Sales per store: $62 million ings by University Health System, samples, offered a grant of stock valued at 3% of their *Including 52 H-E-B/Supermercados Internacionales stores in Mexico Source: Company reports, DSN estimates healthy cooking demos, fitness activities and ap- salary, plus $100 in stock value for each year pearances by local sports stars. of continuous service. The plan could shift as H-E-B has long waged a high-priority public much as 15% of the company’s total stock to military bases around the world access to more campaign against diabetes, which afflicts Texans employees over time, with the Butt family re- than 50,000 grocery, health and general merchan- at a rate above the national average. The “Healthy taining primary ownership. dise products. at H-E-B Slim Down Showdown” encourages H-E-B chairman and CEO Charles Butt called Also available in 2016 is a new prescription customers to shed excess weight through diet the move “a milestone and a recognition of our delivery service to customers from select H-E-B and exercise via a 12-week, ongoing competi- most important resource — our people.” locations. Delivery is free for two or more pre- tion “where participants have a chance to win a In November, the chain also launched online scriptions, and the company promises script de- $10,000 grand prize or a $5,000 health hero prize,” shipping, giving consumers in most states and in livery within four hours or less.

22 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Kmart committed to making health care affordable

By Richard Monks

Despite a recent spate of store closings, Kmart remains committed to pharmacy and health care. “Kmart Pharmacy makes it easier — and rewarding — for patients to care for their family,” said Phil Keough, president of Kmart Pharmacy and SVP at Kmart parent company Sears Holdings. As Kmart continues to downsize, pharmacy will remain a centerpiece of its operation, he stressed, explaining that as pharmacy continues to evolve so will Kmart’s approach to providing patients with the utmost in care and convenience. “Pharmacy will continue to play an integral role in Kmart’s ongoing member-centric transformation,” Keough said. “We continue to look for new ways to serve Kmart Phar- macy patients.” For example, he said, the company has devel- allergies, infections, high cholesterol and Type 2 oped digital tools that make it easier for patients diabetes — provide patients with a 30-day sup- to manage their prescriptions remotely, includ- ply of the drugs. Kmart ing a mobile app that lets users create what the “Kmart Pharmacy is committed to offering company calls “a customized pharmacy on the discounted prescriptions to make health care go” to make it easier to refill prescriptions, see more affordable.” Keough said, noting that the prescription histories and receive medication re- Pharmacy Savings Plus program can even save minders and doctor information. money for patients with insurance. An online “Ask a Pharmacist” tool provides “Some patients have insurance, but their co- round-the-clock access to Kmart pharmacists, pay is higher than the Pharmacy Savings Plus letting patients submit inquiries and receive ad- price,” Keough said. HQ: Hoffman Estates, Ill. vice without leaving their home. Other benefits of the program — which costs 2015 sales: $10.2 billion* Earlier this year, Kmart rolled out a program $10 a year for individuals and $15 for a house- % change vs. 2014: -15.6% No. of stores: 941 to help patients pay for their medications. hold — include free flavoring for liquid medica- No. of stores with Rx: 659 Unveiled in January, the Kmart Pharmacy tion, a 25% discount on immunizations and 10% Avg. store size: 118,900 sq. ft. Savings Plus program is aimed at uninsured or off the cost of pet medications. Rx sales: $1.2 billion underinsured patients who pay cash for some The new program complements the Shop % of sales from Rx: 12% or all of their prescriptions and other pharmacy Your Way Pharmacy Rewards Program Kmart Sales per store: $10.8 million products and services. debuted last year. Under that program’s *Includes Kmart stores only Source: Company reports, DSN estimates Keough said early customer response to the points-based system, shoppers earn $10 back program has been overwhelmingly positive. in points for every five qualifying prescrip- “We have received great feedback from mem- tions filled in a 12-month period. Points earned ity time with their Kmart pharmacist, receiving bers, particularly those taking advantage of can be used for savings across a wide range of personalized care,” he said. “In fact, you’ll often our 10 commonly prescribed items priced at product categories. find our pharmacists assisting customers in the just $3 each for Pharmacy Savings Plus mem- Programs like these, Keough said, are helping drug store aisles.” bers,” he said. draw more patients into Kmart’s pharmacies, Kmart offers free immunization screenings Those generic medications — which include where they can take advantage of the operations’ that do not require patients to make an appoint- three drugs to treat high blood pressure, two for greatest asset — the company’s pharmacists. ment, and all Kmart pharmacists are trained to chronic pain and one drug each for depression, “Patients have direct access to and spend qual- administer and recommend vaccines.

23 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Hy-Vee expands its footprint in health

By Jim Frederick

Hy-Vee, one of the Midwest’s premier supermarket and pharmacy retailers, delivered on a long-standing pledge last September with the opening of its first two stores in the Minneapolis/ St. Paul market. Those stores, in New Hope and Oakdale, Minn., are the vanguard of an incursion over the next few years, said Kristin Williams, who became SVP pharmacy operations after the retirement last year of Bob Egeland. “Hy-Vee plans to add four to five new stores each year over the next several years in the Twin Cities market,” Williams said. Those new stores bear the hallmarks of Hy- Vee’s increasing focus on pharmacy and health and wellness. “We also are remodeling many of our older stores … with a new interior design that places health-and-wellness services at the front of each store,” Williams told DSN. Hy-Vee’s pharmacy chief calls the company “unique, in that we offer a comprehensive ap- For that reason, she said, “we continue to proach to health and wellness. Between our partner with local healthcare providers to open pharmacists, in-store dietitians, health concierg- retail health clinics in our stores. As of January Hy-Vee es, chefs and retail health clinics, Hy-Vee offers 2016, Hy-Vee had more than 30 retail health … the convenience of easily seeking healthcare clinics open in stores across our eight-state re- services for a variety of medical conditions or gion, with more clinics scheduled to open in guidance [on] … personal health goals.” 2016 and beyond.” To that end, Williams said, “Hy-Vee uses vari- Williams called Hy-Vee’s growing clinic ous resources to offer our customers an easy way presence “a natural fit” with local health pro- to seek treatment or learn more about preven- viders. “From the provider’s nurse practitio- tion. Hy-Vee pharmacists will review a custom- ners and doctors to Hy-Vee’s in-store dietitians, HQ: West Des Moines, Iowa er’s prescriptions … while our dietitians offer chefs, health concierges and pharmacists, our 2015 sales: $9.3 billion our ‘Begin’ program to help others manage their overall goal is to help our customers get and % change vs. 2014: 6.7% No. of stores: 240 weight loss. Also, our chefs and dietitians work stay healthy,” she said. “Also with the inclusion No. of stores with Rx: 253* with our pharmacists to provide recipes or guid- of Amber Pharmacy, we are positioned to pro- Avg. store size: 75,000 sq. ft. ance for those with specific diet restrictions.” vide specialty medications to our patients … Rx sales: $1.1 billion Most Hy-Vee stores also offer a HealthMarket through our specialty at retail program.” % of sales from Rx: 12% section featuring organic, natural, gluten-free Hy-Vee bought Omaha, Neb.-based specialty Sales per store: $38.3 million and allergy-friendly foods. “In 2015, we added pharmacy Amber in 2014 after the two compa- *Includes 212 Hy-Vee stores with pharmacy, 17 Hy-Vee drug stores, five specialty pharmacies, 18 clinic pharmacies and one central fill facility six new HealthMarkets in … new stores, opened nies had worked together over several years to Source: Company reports, DSN estimates eight new departments … and expanded 52 ex- create Hy-Vee Pharmacy Solutions. Recently, isting [departments],” Williams said. it named Mike Agostino, president of Amber Last year, the company also launched a web- The chain also is expanding its walk-in clinic Pharmacy/Hy-Vee Pharmacy Solutions, to the based service called Hy-Vee Aisles Online, where presence. “We are mindful of the significant im- new post of VP pharmacy innovation and busi- customers can shop, pay electronically and pact retail health clinics will have in driving our ness development. “Agostino will work with choose to pick up their order or have it delivered company’s pharmacy business,” Williams said. Hy-Vee’s health-and-wellness teams to research, to their home. “The service also provides the op- “Access to convenient and affordable healthcare develop and launch programs and initiatives portunity for the driver to pick up a customer’s services is more important to [customers] now that further grow Hy-Vee’s health brand,” Wil- medications from the pharmacy and deliver it to than … ever before.” liams explained. their home,” Williams said.

24 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Addition of specialty provides boost

By Richard Monks

As it continues to revamp its business, pharmacy and patient care have become the corner- stones of Fred’s operation. Over the past year, the company has successfully integrated a specialty pharmacy business into its operation and has continued to focus on positioning itself first and foremost as a healthcare outlet. Currently, there are pharmacies in 372 of Fred’s 659 stores, and executives hope to continue to increase that total in the next few years. In addition, the company is rolling out new technologies that will expedite the prescription-filling process and reduce the number of out of stocks and partial fills. “In 2015, we took significant steps to position Fred’s for the future,” CEO Jerry Shore said, stressing that growing the company’s pharmacy and healthcare business was his top priority. “Our migration to become a Meanwhile, shake-ups in the pharmacy healthcare provider is critical to the commu- business over the past few months also are ben- nities we serve.” efiting Fred’s. Shore cited Walmart’s decision Fred’s Super As the American healthcare system has to stop operating smaller-format stores and Dollar evolved over the past few years and commu- Walgreen Boots Alliance’s pending acquisition nity pharmacies play a more central role in that of Rite Aid as developments that should help system, Shore said Fred’s is well-positioned to drive more patients into Fred’s pharmacies. meet any new challenges or obstacles that the With the continued shortage of primary care changing system presents. physicians nationwide, Fred’s made its first For instance, he cited insurers’ growing em- foray into health clinics last year, debuting a phasis on outcomes in which the payers prefer walk-in clinic in a store in rural Arkansas. HQ: Memphis, Tenn. to steer patients to providers who can improve A retailing mainstay in the Southern and 2015 sales: $2.2 billion patient health. That emphasis on driving out- Southeastern states since 1947, Fred’s offers % change vs. 2014: 9.1% No. of stores: 659 comes, Shore said, is central to Fred’s phar- shoppers a lot more than just pharmacy and No. of stores with Rx: 375* macy business and will be at the heart of the health-related products and services. With Avg. store size: 13,050 sq. ft. company’s efforts going forward. stores that average a little more than 13,000 Rx sales: $1.1 billion One aspect of Fred’s business where this is sq. ft. of selling space, Fred’s combines what it % of sales from Rx: 50.2% most apparent is in the company’s entry into says is “the best elements of a discount dollar Sales per store: $3.3 million the specialty pharmacy sector — a business store, drug store and mass merchant,” offering *Includes 372 in-store pharmacies and three specialty pharmacies Source: Company reports that Shore said played a significant role in the more than 12,000 items that address the every- company’s overall sales, growing by slightly day needs of its customers. more than 9% last year. In addition to its Fred’s stores, the company cused on 2016 and beyond. In addition, a growing number of patients operates Getwell Drug & Dollar, a five-store “We are very pleased with Fred’s consider- are turning to the company for immunizations. network of pharmacies that offer an expanded able progress in 2015,” he told analysts. “Key In his March conference call with analysts, over-the-counter medication selection, indi- priorities for us in 2016 will be to drive traffic Shore noted that Fred’s saw a 21% increase vidualized patient care and more than 1,700 by improving the total store experience, contin- in the number of vaccinations it provided in $1 items. ue to improve general merchandise profitabili- 2015. That growth came on the heels of a 32% With its commitment to pharmacy clearly in ty and extend the rapid growth of our specialty increase in 2014, he said. place, Shore said Fred’s has its eyes clearly fo- pharmacy and retail healthcare services.”

25 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Bi-Lo reinvests in format, product with name change

By Michael Johnsen

Bi-Lo Holdings last year made it official. The company henceforth will be known as South- eastern Grocers. Bi-Lo Holdings, which operates grocery stores under the banners Bi-Lo, Winn- Dixie and Harvey’s Supermarket, had planned to adopt that name with its initial public offering in 2013. And while that IPO proposal was later withdrawn in 2014, there is wide speculation that Southeastern Grocers may be an acquisition target by a company like Kroger or may attempt another IPO in the coming year. Speculation aside, one thing is for sure. The company is looking to reinvest in both the product and the format. Last year, the company implemented a price-cut strategy across more than 3,000 grocery items in an effort to represent better customer value. The price investment program, dubbed “Down, Down,” represents a change in short-term price management strategies to a longer-term, sustained-value strategy. step change from where we have been, as well “We believe in eating well for less. This as a clear indicator on how we intend to satisfy means that while we are offering quality food, our customers’ needs in the future.” Southeastern customers will not be paying more for their The new Southeastern Grocers pilot at Winn- Grocers basket,” stated Ian McLeod, Southeastern Gro- Dixie showcases the company’s in-store food cers president and CEO. “Since October last production, adding an element of retail theater year, we have invested [more than] $70 million with its “Kitchen” area that features a stone into lowering our prices. We now have [more hearth pizza oven and smokehouse. Brisket than] 3,000 new lower prices and [more than] and pulled pork will be slow-cooked in-house, 600 products on Down Down — prices that are and on-site Winn-Dixie chefs will construct sig- down and staying down.” nature pizza sauce and marinades. HQ: Jacksonville, Fla. And in February, Southeastern Grocers un- And the retailer has expanded its natural, 2015 sales: $11.36 billion veiled the first new Winn-Dixie pilot with a organic and whole foods ranges with around % change vs. 2014: 0% No. of stores: 756 promise that 50 more would be opened across 4,000 natural and organic products. Sourcing No. of stores with Rx: 504 the company’s three banners in the coming year. from more than 50 local Florida farms, the store Avg. store size: 46,000 sq. ft. The new pilot is easier to navigate, with depart- will feature quality produce displayed on ice to Rx sales: $1.02 billion ments clearly identified on the top of the walls, maintain freshness and expanded varieties, in- % of sales from Rx: 9% and there is a renewed emphasis on “fresh” — cluding prickly pears, lychees and dragon fruit. Sales per store: $14.9 million the newly positioned entrance opens directly into With the name change to Southeastern Gro- Source: DSN estimates the fresh produce department, where in-season cers also came a new leader. McLeod, who also fruits and vegetables are displayed on beds of ice. has experience in the United Kingdom and Ger- and COO Anthony Hucker joined the compa- “This store provides us with an opportunity many, most recently served as managing direc- ny as COO in March. Hucker also is a veteran to redefine what Winn-Dixie can provide for tor for Australia’s 2,200 Coles food, liquor and of Ahold USA, having served on that grocer’s its customers in a contemporary, friendly and convenience stores, including more than 760 full- executive board and as president of Giant exciting in-store environment focused on stun- service supermarkets, growing sales from $23.2 Food. Before joining Giant, Hucker worked ning, quality, fresh food, specialty stores-with- billion to $35.2 billion, doubling profits over six with Walmart, both in the United States and in-stores and very competitive prices,” McLeod years and outperforming the market for 20 con- internationally, for seven years, and with deep said. “We are planning around 50 store remod- secutive quarters. discounter Aldi for 10 years. els this year and believe this store represents a More recently, former Schnucks president

26 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Focused on elevating customer convenience

By Michael Johnsen

Based out of Pittsburgh, Giant Eagle has long held a reputation for savvy retailing — always willing to explore new ways to shape the grocery and convenience retail format. And that applies to the health-and-wellness and retail pharmacy sector of the store just as much as it applies to the upscale food offering associated with Giant Ea- gle’s Market District concept and the speed and convenience tied to its GetGo gas stations. In the past year, Giant Eagle has focused on elevating convenience for its pharmacy customers through the implementation of a medication synchronization program. “This process synchronizes prescription filling so that customers can pick up all of their prescriptions in a single visit to their Giant Eagle Pharmacy, and generates an appointment for engagement between the pharmacist and customer,” said Jannah Jablonowski, Giant Eagle spokesperson, in an interview with Drug Store News. proactive care service for patients versus a reac- “To date, the introduction of medication syn- tive care service,” DeJames said. “It’s an oppor- chronization has enabled Giant Eagle to take a tunity, but it’s an intimate opportunity. … You Giant Eagle more holistic approach to health care, and has would be surprised what people tell you when resulted in a number of positive outcomes,” she you get to that one-on-one with immunizations.” added. “Ensuring ongoing communication be- Giant Eagle also is investing in its back-end tween the customer and the pharmacy makes IT infrastructure. Late last year, Giant Eagle it easier to address any medication-related con- partnered with IBM in overhauling its IT in- cerns, closes gaps in care, improves medication frastructure with a hybrid cloud solution from adherence, reduces first-fill abandonment rates IBM Cloud. and results in fewer out-of-stock or partially The new solution, SoftLayer, based on IBM HQ: Pittsburg filled prescriptions.” Cloud’s Infrastructure as a Service, is designed 2015 sales: $9.5 billion Another focus for Giant Eagle has been medi- to provide Giant Eagle flexible, consumption- % change vs. 2014: -1% No. of stores: 222 cation therapy management. “We realized we based pricing, as well as faster procurement by No. of stores with Rx: 219 had to get away from a dispensing model and providing greater visibility into data. “Our goals Avg. store size: 75,000 sq. ft. get into a patient care-centered model,” said to reposition our technology infrastructure were Rx sales: $972.9 million John DeJames, manager of clinical services/spe- to achieve the scalability, security, reliability, resil- % of sales from Rx: 10.2% cial projects at Giant Eagle, during a roundtable iency and efficiency that the advancements in the Sales per store: $42.8 million discussion on chronic care and retail health dur- technology are making possible without making Source: Company reports, DSN estimates ing DSN’s Industry Issues Summit in December. significant capital investments,” said Jeremy Gill, “So we find out that after maybe about three senior director of technology infrastructure at grating its production IT operations to IBM. touchpoints, customers [are] engaged again. All Giant Eagle. “IBM’s full range of offerings from “Companies that succeed for as long as Giant of a sudden [it goes from], ‘my pharmacist hasn’t public cloud, private cloud and bare metal and Eagle have done so because they understand really talked to me for a couple of years’ [to] ‘my robust security capabilities were their competi- the value of adopting innovation,” said Jim pharmacist has an interest in my health care,’” tive differentiators.” Comfort, general manager at IBM Cloud. “For he said. As of December, Giant Eagle was in phase one Giant Eagle, the move to an IBM hybrid cloud In addition to med-sync and MTM services, of its rollout, which includes the deployment of is just the latest example of its foresight, and Giant Eagle has upped its offerings around im- the development/test and disaster recovery it will serve as the next strategic move in the munizations. “[We look at] immunizations as a environments. Phase two will include mi- company’s digital transformation.”

27 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Meijer expands store base, patient care

By Richard Monks

As it continues to strengthen its position in Michigan and the five surrounding states, Mei- jer is putting a strong focus on pharmacy and health and wellness. In March, the 224-store retailer announced that it would spend $400 million this year to expand and upgrade its store base, adding nine new supercenters — all of which are expected to include a pharmacy — while remodeling 32 other stores. “We are pleased to continue to grow and invest in the Midwest communities that have sup- ported us for so long,” co-chairman Hank Meijer said when the expansion plan was unveiled. “By keeping prices low and ensuring a great shopping environment, we are keeping our promise to our customers that we will provide the best one-stop shopping solution.” Meijer said the store remodels will include improved store layouts, expanded grocery, li- ing the hospital. quor, and health and beauty sections, as well “Our pharmacies provide genuine care as new technology to make the stores more en- to our customers at times when they need it Meijer ergy efficient. most,” company president Rick Keyes, a for- The 2016 expansion program is the latest mer Meijer pharmacist, said when the venture move in the company’s aggressive growth strat- was announced. egy that the company has employed over the He stressed that the pharmacy on the Spec- past few years. Since 2010, Meijer has opened 36 trum Health campus will increase convenience new stores across Michigan, Ohio, Indiana, Illi- for hospital patients and employees, and will nois, Kentucky and Wisconsin. give residents of downtown Grand Rapids an Centered on the one-stop shopping concept, additional option for filling their prescriptions. HQ: Grand Rapids, Mich. Meijer has ensured that its stores offer a full ar- Like patients who frequent Meijer’s other 2015 sales: $17.6 billion ray of products and services. In recent years, pharmacies, those opting to get their prescrip- % change vs. 2014: 2.3% No. of stores: 224 that has meant putting a pharmacy in every one tions filled at the hospital pharmacy can partici- No. of stores with Rx: 224 of its stores. Most of these pharmacies include pate in the company’s decade-old free prescrip- Avg. store size: 225,000 sq. ft. drive-through window service, and a handful of tion program that gives them access to no-cost Rx sales: $769.3 million them are open 24/7. antibiotics, prenatal vitamins and a handful of % of sales from Rx: 5% Meijer’s recent efforts to bolster its reputation generic medications, including the diabetes Sales per store: $79.8 million as a provider of pharmacy and patient care also drug metformin and the cholesterol-lowering Source: Company reports, DSN estimates have seen the company embark on at least one medication atorvastatin calcium. Meijer said venture outside of its stores. In November, the that since the free prescription program began in services, including immunizations, flu shots, a company opened a full-service retail pharmacy 2006, nearly 30 million prescriptions have been heart health program, no-appointment health at Spectrum Health Butterworth Hospital in filled, saving patients more than $410 million. screenings and specialty pharmacy services. Grand Rapids, Mich., making it one of the first Executives stress that programs like this Meijer entered the burgeoning specialty phar- community pharmacy companies in the state to have helped make Meijer the go-to pharmacy macy arena nearly a year ago with its acquisi- partner with a hospital system. Executives say for thousands of patients. And, they said, as tion of Pittsburgh-based Aureus Health Servic- the partnership builds upon the nationwide community pharmacy continues to evolve, the es, a deal that executives said was a significant trend of offering additional convenience to pa- company’s healthcare offering is staying on top step towards the company’s goal of providing tients who need prescriptions filled before leav- of these changes by offering a broader range of total patient care.

28 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Personalizing customer health and wellness

By Antoinette Alexander

Wakefern’s ShopRite has shifted its focus on health and wellness into high gear, and the mo- mentum shows little signs of slowing as the retailer continues to roll out its Diabetes Wellness Centers and beauty adviser program. In collaboration with Johnson & Johnson, the company opened in February 2015 a diabetes center in its Flemington, N.J., location. Aim- ing to reinforce all aspects of diabetic care from monitoring and nutrition management to medication, education and total body care, the center includes more than 100 items across several categories, including pharmacy. The move is in line with ShopRite’s Live Right initiative, which is all about personalizing the health-and-wellness experience for its customers and is largely the result of the new era described by many as the “consumerism of health care.” To create the space, ShopRite partnered with destination center, much like it did with diabe- J&J on its front-end and pharmaceutical side of tes. “We are building a best-in-class wound care the business. Utilizing J&J’s professional exper- set that’s really going to address the need of Wakefern tise, research and resources — combined with consumers similar to what we did with diabe- ShopRite’s knowledge of the customer and com- tes,” noted Wakefern VP health and beauty care Food munity — the grocer created a space that aims to Chris Skyers. be convenient, inviting and educational. Looking to bring its health and beauty pro- Strategically located next to the pharmacy grams full circle, the company continues to roll and the company’s in-store dietitian, this one- out its beauty adviser program in ShopRite stop shop also delivers education in the form of stores. There are currently about 15 advisers signage, brochures and an onsite tablets for ad- working in stores. ditional information. The program has been met At a new ShopRite store that opened in Sep- HQ: Keasbey, N.J. with great success, and the initiative has been tember 2015 in Newark, N.J., for example, shop- 2015 sales: $15.7 billion % change vs. 2014: 6.7% expanded to about a dozen stores. pers will find a beauty adviser in its health and No. of stores: 330* Looking ahead, the co-created set has the po- beauty area, which is curated for the needs of No. of stores with Rx: 218 tential to generate $1,000 in incremental dollars multicultural consumers. The department fea- Avg. store size: 65,000 sq. ft. annually for every new diabetes customer cap- tures illuminated fixtures and such sought-out Rx sales: $754 million tured by ShopRite stores. That growing niche brands as Tio Nacho hair care, dreadlock head % of sales from Rx: 4.8% Sales per store: $47.6 million consumer base represents a market basket five wraps, the Shea Moisture brand and color cos- *Including 61 Price Rite stores, six Fresh Grocer stores and one times larger than their non-diabetic peers. metics for women of color. The Men’s Zone is Dearborn Market store About 29.1 million people have diabetes, and a focal point with a spotlight on products and Source: Company reports, DSN estimates it’s a niche that’s growing fast. Currently, at least brands targeted at men. 1-out-of-3 people will develop diabetes in their The health and beauty area is conveniently lifetime. The cost associated with managing dia- located next to the dietitian’s consultation room They also offer one-on-one consultation, as well betes represents 7% of total U.S. healthcare costs, and the pharmacy, bringing all aspects of health as group workshops and seminars on many with $176 billion in direct costs. and wellness together in one area of the new health-related topics. But it doesn’t end with diabetes. During a store. The retailer currently has more than 120 Aside from meeting the health-and-wellness business session at the GMDC Health Beauty dietitians in its stores. needs of its shoppers, the new store, located in Wellness event in 2015, the retailer noted that it The in-store dietitians offer free services to what had been downtown Newark, delivers a plans to transform first aid into a wound-care help manage customers’ dietary restrictions. major supermarket to a food desert.

29 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Kinney Drugs debuts in-store health clinic

By Antoinette Alexander

Experience the difference. That’s the message that Kinney Drugs has for customers who visit the Gouverneur, N.Y.-based chain that was founded in 1903. Filling nearly 8 million prescriptions annually, Kinney Drugs works to improve health outcomes through an array of professional services, including immunizations, medication therapy management, automatic refills, medication synchronization, pick-up reminders and free prescription delivery. New to its menu of services is an in-store health clinic nested within its Tupper Lake, N.Y., store. The new Healthy You Wellness Center, which held its grand opening in February, is a first-of-its-kind healthcare collaborative between Adirondack Health and Kinney Drugs. At the Healthy You Wellness Center, As in prior years, the company once patients can be treated for common medi- again offered in March free colorectal can- cal conditions, such as upper respiratory cer screening kits through its partnership Kinney Drugs and sinus infections, bronchitis and sore with the American Cancer Society and throats, ear and eye infections, and urinary Upstate Cancer Center. Customers com- tract infections. plete the screening kit in the privacy of their Like other retailers, Kinney Drugs is turn- own home and then mail completed kits ing to such clinics to offer patients increased directly to Upstate. Upstate Cancer Center access to healthcare services. There are cur- processes the completed screening kits in its rently about 2,000 retail pharmacy clinics in laboratories, and customers are notified of operation, as noted in a recent blog by Adam the test results. HQ: Gouverneur, N.Y. Fein, president of Pembroke Consulting and Colon cancer is the second-leading cause 2015 sales: $845 million CEO of Drug Channels Institute. While Fein of cancer death in the United States when % change vs. 2014: NA No. of stores: 102 predicted that 2016 will be a year of slow men and women are combined, yet it can be No. of stores with Rx: 102 growth for the clinic market, much like 2015, prevented and detected early. It is estimated Avg. store size: 10,500 sq. ft. he expected the number of retail clinics to that screening could prevent many of the Rx sales: $701 million reach 2,300 to 2,500 locations by 2018. 50,000 colorectal cancer deaths each year, ac- % of sales from Rx: 83% Kinney Drugs, which is the retail pharma- cording to the American Cancer Society. Sales per store: $8.3 million cy division of KPH Healthcare Services, also Meanwhile, Kinney Drugs recently opened Source: DSN estimates has set its sights on improving medication a new location in Syracuse, N.Y. The new adherence. In 2014, the company launched store features a large selection of personal including a wider selection of nutritional and its EZSync tool, which is used by its phar- healthcare products, including home medi- weight management products; an expanded macists to synchronize all of a patient’s pre- cal equipment; sleep comfort products and cosmetic department, including Bare Min- scription refills each month. compression hosiery; a new children’s over- erals; Dr. Scholl’s Orthotics; and the Phar- Such efforts are critical since research by the-counter section; an expanded cosmetic maSmart blood pressure management kiosk. the National Community Pharmacists As- department; a broader offering of hair, skin Each year, Kinney Drugs also hosts more sociation shows that U.S. patients who rely and nail product lines; and a private phar- than 1,200 events, including Children’s Mir- on medication synchronization programs at macy consultation room. acle Network Drive, School Supply Drive, their community pharmacy are 30% more There’s also a new store in Manlius, N.Y., Food Drive, Book Drive, Toys for Children likely to take their medication as prescribed. which features much of the same offerings, and Gifts for Seniors.

30 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Shopko to increase Hometown locations

By Richard Monks

With many of its stores in rural locations where it is the only retailer or pharmacy, Shopko has carved out a reputation as a valued member of the community. “We view ourselves as qualified neighbors, helping our neighbors, active in our communities, offering a wide range of products and services,” SVP of retail health and wellness Darren Singer said. “Shopko pharmacy works to build trusting relationships one patient at a time,” he noted. “Every patient is greeted with a warm welcome and a smile, given a clear explanation of the service we are providing from a friendly face, who truly listens, forging partnerships and creating patients for life.” Operating 372 stores under four banners — Shopko, Shopko Express Rx, Shopko Hometown and Shopko Pharmacy — the company serves consumers in 25 states across the middle and management, Singer said Shopko is ideally situ- western portions of the country. The largest of the ated to meet these new dynamics. company’s three formats is Shopko, a network of “We focus on all disease states, with heavy Shopko 131 stores each measuring more than 91,000 sq. emphasis on diabetes and hypertension,” he ft. and offering a wide array of apparel and home said. “We have enterprise-wide programs to goods, as well as pharmacy and optical services. drive MTM and CMR completion rates to im- The company’s 231 Shopko Hometown stores prove adherence and [drug utilization reviews], measure about 35,000 sq. ft. apiece and are locat- plus medication synchronization for convenient ed in smaller communities. Many have pharma- one-time pickup of all medications being filled in cies. The company plans to accelerate expansion our pharmacy.” of its Shopko Hometown store format. “The rural Singer noted that over the past year, Shopko HQ: Green Bay, Wis. population is grossly underserved, so we’re ea- was one of the industry’s fastest-growing pro- 2015 sales: $3.3 billion ger to bring Shopko Hometown to more commu- viders of immunizations, with the number of % change vs. 2014: 8.1% No. of stores: 372 nities,” noted Shopko CEO Peter McMahon. shingles, influenza, whooping cough and tDap No. of stores with Rx: 262 According to Singer, over the next year the (tetanus, diphtheria, and pertussis) vaccinations Avg. store size: 53,981 sq. ft. company will add between 50 and 75 Shopko dispensed climbing by 18%. Rx sales: $648.9 million Hometown stores — most are expected to in- CMS has given Shopko’s pharmacy operation % of sales from Rx: 20% clude pharmacies. a five-star rating and ranked it in the top 5% on Sales per store: $8.8 million A critical part of Shopko’s business, pharmacy quality measurements. As a result, the company Source: Company reports, DSN estimates has taken on added importance in recent years is part of an elite group of pharmacy operators as the country’s healthcare system has evolved. who are able to participate in several preferred cies and optical centers, the company has made it “For 50 years, the Shopko difference has been and limited health plan networks. easy for shoppers to get a comprehensive health- service,” Singer said. “We have been dedicated to “This gives us access to more people whose care offering under one roof. providing personalized service for our patients lives we can improve,” Singer said. “We have the opportunity to connect the dots — and today, this is more important than ever.” Shopko continues to expand its health-related for our customers as a one-stop destination for With more insurers following the example of offerings with a wider assortment of over-the- the stuff that counts,” Singer said. “When we the Centers for Medicare and Medicaid Services’ counter medications, nutritional supplements connect the dots for shoppers, we create an ‘ah- emphasis on quality of care, adherence measures, and durable medical equipment. With these ha’ moment for our customers, converting them improved outcomes and chronic disease state products merchandised adjacent to its pharma- into patients.”

31 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Wegmans upgrades health offerings, services

By Michael Johnsen

There aren’t many retail operations that reach the century mark. And there are fewer still who reach that mark ranking high on both customer-satisfaction lists and great-places- to-work lists. J.D. Power crowned Wegmans as the top supermarket pharmacy operation, according to its 2015 U.S. Pharmacy Index released in August. And more recently in March, Fortune listed Wegmans No. 4 on its 2016 list of “Best Places to Work,” saying “We- gmans promotes employee wellness with immunizations, yoga sessions, cooking classes and a Store Wellness Champion at each location, where a pharmacist does health screenings and cheers employees on as they make healthy changes.” In 1916, brothers Jack and Walter Wegman first went into the food business together. Jack got his start in the grocery business behind a pushcart selling fresh fruits and vegetables have had these hearing assistance systems in along the streets of Rochester, N.Y., while Wal- place — at least one store in each of the six ter learned the grocery business working in states where Wegmans operates — but more Wegmans a store his parents operated from the front of will be added in 2016 with all stores featur- their home. ing the hearing loop systems by the end of the And 100 years later, it’s still a family-owned year. These systems are in wide use in Europe- and -operated business, with great grand- an countries and are becoming more common daughters Nicole Wegman serving as SVP in the United States, where about 70% of new perishable foods and wine and Colleen Weg- hearing aids and all new cochlear implants man serving as Wegmans president, as well as have T-coils, according to the Hearing Loss grandson CEO Danny Wegman at the helm, Association of America. HQ: Rochester, N.Y. who shared the secret to Wegman’s success in And in March, Wegmans partnered with higi 2015 sales: $7.9 billion a letter in the 100th anniversary issue of Weg- to provide healthcare kiosks to its customers. % change vs. 2014: 6.8% No. of stores: 88 mans Menu magazine, “As we reflect on how More than 100 higi stations — which custom- No. of stores with Rx: 88 we got here, we remember a simple rule that ers and employees will use to monitor blood Avg. store size: 107,500 sq. ft. my dad taught us: ‘Never think of yourself; al- pressure, BMI, weight and pulse — are being Rx sales: $573.8 million ways help others.’” Danny quoted his father installed across Wegmans’ corporate locations % of sales from Rx: 7.3% Robert Wegman, who started working for the and all retail outlets. Sales per store: $89.8 million company in 1937, and then led the company As part of the partnership, higi will create Source: Company reports, DSN esitimates from 1950 until his death in 2006. and promote an interactive health platform That “think of others” mantra helps explain with quarterly health challenges for Wegmans employer customer, bringing the total number of many of the health-and-wellness initiatives customers and employees. Americans covered by the service to 45 million. Wegmans put into play in the past year. Hearing assistance systems and technologi- For Wegmans, the service represents an In January, Wegmans installed induction cally advanced health kiosks aren’t the only acute care solution for shoppers seeking health hearing loop stations in its stores at pharmacy cutting-edge health initiatives that Wegmans is advice around nonemergency needs. counters, customer service desks and desig- pursuing. Last summer, Wegmans started test- In 2016, Wegmans will reach 92 stores in op- nated checkout lanes to help its customers marketing a telehealth service in partnership eration, with 2016 store openings planned for with hearing loss. with Doctor on Demand. Owings Mills in Maryland, and Midlothian, As many as 16 Wegmans stores already Doctor on Demand recently signed its 400th Short Pump and Charlottesville in Virginia.

32 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report CARE expands reach, partnerships

By David Salazar

CARE Pharmacies in 2015 saw its footprint expand into new states, while growing both the services it offers patients and its sales. It grew to have 82 stores — up from 79 in 2014 — and the pharmacy cooperative’s CEO, Michael Wysong, said that by the end of 2016’s first quarter, it would have 90 stores in 17 states. From a sales perspective, CARE Pharmacies saw 24% growth in 2015, netting $574 million in sales across all stores, with 95% of that coming from pharmacy sales. “2015 was a record year for CARE Pharma- cies, and we continue to expand outside of our traditional operating region in the Mid-Atlantic,” Wysong said. “The need for the services that we provide continues to be an attraction for community retail and specialty pharmacies looking to thrive in the changing landscape of health care.” Wysong attributed part of the company’s growth to some of its strategic partnerships, from “As access to drugs becomes a bigger issue its new pharmaceutical supply agreement with for providers, we wanted to be able to leverage McKesson to “several other sourcing partner- the success that we’ve had in specialty pharmacy CARE ships with regional drug chains to address the to make it easier for our customers to get their Pharmacies dynamic needs of our community pharmacies.” medications in one place and ensure that they And, the company also built partnerships with take them appropriately,” Wysong said. “Mov- payers to pilot transitional care programs. ing forward, we think health care will continue “At CARE Pharmacies, we think the new to be delivered and managed differently than it models of patient-centric care play directly into is today. CARE Connect is our way of addressing our organization’s strengths. We have partnered that challenge.” with several regional payers in transitional care The company’s expansion and bolstering of HQ: Linthicum, Md. programs that help them control their costs by its pharmacy business has been about tackling 2015 sales: $574 million improving adherence and driving better patient the challenges in the industry alongside infra- % change vs. 2014: 24.1% No. of stores: 82 outcomes,” Wysong said. “The early results of structure challenges. Last year, the company No. of stores with Rx: 82 these pilot programs are favorable, and we ex- undertook several efforts to improve its systems Avg. store size: 3,500 sq. ft. pect greater demand for these solutions as the technology as part of its “Quality of CARE” ini- Rx sales: $545.3 million need for community pharmacy to take on a great- tiatives — a process that is still ongoing. % of sales from Rx: 95% er role in health care continues.” “The shifting markets, along with the emer- Sales per store: $7 million Alongside a growing role for pharmacies is gence of digital health care, required us to take a Source: DSN estimates the growing part that specialty pharmacy plays deeper look at the connectivity of all of our sys- in the business, with about 50% of drug spend tems to ensure that they held intrinsic value to our costs and improve patient outcomes will expected to go toward specialty medication by our customers and our partners,” Wysong said. continue to be a prime focus for us in 2016,” he 2018. To provide access to specialty, CARE Phar- “It is likely we won’t see the full integration of said. “We are preparing to take on a larger more macies in January launched CARE Connect, a these systems in 2016.” impactful role within the communities that we proprietary specialty pharmacy network for But with the ongoing system integration, the serve, and we think that our unique operating members. According to Wysong, CARE Con- launch of CARE Connect and the success of its model coupled with our expertise in specialty nect is about adapting to a constantly changing transitional care pilots, Wysong is looking for- pharmacy has us favorably positioned to contin- business, while providing patients access to spe- ward to a strong 2016 for CARE Pharmacies. ue the unprecedented growth trend that we have cialty medication. “The pressure we feel to continually control experienced over the last several years.”

33 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Teamwork, technology key to Supervalu’s success

By Richard Monks

Pharmacy and health care are essential parts of Supervalu’s operation. The company — which operates supermarkets under the Cub Food, Farm Fresh, Horn- bachers, Shop ’n Save and Shoppers Food & Pharmacy banners in the Midwest and Mid-At- lantic states — has pharmacies in 190 of its 200 stores, and sees these prescription counters as part of its larger focus on wellness. “Our pharmacists practice innovative and world-class patient care,” the company said. “The success of Supervalu pharmacies is the result of meaningful patient relationships, exceptional pharmacy teams and cutting-edge technology. We embrace proven, value-added business practices while striving to exceed our commitments to our patients, associates and communities.” Recognizing that its customers’ time is valuable, Supervalu has helped make its pharmacies their offerings to include a comprehensive range destinations by stressing their convenience and of patient clinical services, including diabetes featuring programs that take advantage of the education classes, health screenings, immuniza- Supervalu company’s ability to provide a comprehensive tions and a medication management program in food and drug shopping experience. which patients receive personalized clinical ser- “Supervalu pharmacies respect their pa- vices to help manage common and chronic con- tients’ valuable time,” the company said. “With ditions and complicated medication regimens. convenient in-store pharmacies, our customers It also has taken advantage of its position as a can have their prescriptions filled quickly while supermarket operator that can offer a compre- they grocery shop.” hensive approach to wellness conducting gro- To ensure convenience, Supervalu offers pa- cery store tours focused on diabetes. HQ: Eden Prairie, Minn. tients a variety of tools that expand their options While pharmacy has become a central part of 2015 sales: $4.9 billion* and let them fill their prescriptions in the manner Supervalu’s offering, it also has played a role in % change vs. 2014: 2.1% No. of stores: 200 best suited to their needs. For instance, the com- the recent financial downturn. In the third quar- No. of stores with Rx: 190 pany’s pharmacies offer automatic prescription ter of its fiscal year, the company’s overall sales Avg. store size: 50,000 sq. ft. refills and provide patients with a smartphone dipped by 2.6%, the largest quarterly decline in Rx sales: $524.9 million application to handle their pharmacy business. more than two years. Revenue for its retail sec- % of sales from Rx: 10.7% Some stores also feature drive-through win- tor — the division that includes its traditional Sales per store: $24.5 million dows, mail-order service and home delivery. supermarkets and pharmacies and accounts for * Excludes Sav-A-Lot and supply chain sales; projected for fiscal year 2016 Source: Company reports, DSN estimates “Supervalu embraces the changes occurring about 25% of Supervalu’s business — also fell within the pharmacy profession and is a leader 2.6%. The company said the supermarkets’ per- in the implementation of pharmacist-delivered formance was negatively impacted by falling 4.3% during the quarter. services,” the company said. “By participating profit margins at its in-store pharmacies due to Also earlier this year, Supervalu announced in patient-centered services, Supervalu phar- lower managed care reimbursement rates. To its intention to spinoff its Save-A-Lot discount macists continue to demonstrate the value of make up for that shortfall, Supervalu curtailed division as a publicly traded company. the community pharmacist as a member of the some store-level promotions, which the com- And on Feb. 5, new CEO ark Gross took the healthcare team.” pany said then hurt customer traffic. Data com- helm at the conpany. The former C&S Whole- Beside filling millions of prescriptions every piled by Supervalu showed customer counts at sale Grocers executive will replace Sam Duncan, year, Supervalu pharmacies have expanded the company’s conventional markets declined who previously announced his retirement.

34 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Adherence programs, specialty drive growth

By Antoinette Alexander

Thrifty White may not have the broad footprint of a big national player, but this 92-store regional chain packs quite a punch when it comes to health-and-wellness initiatives. The employee-owned company remains hard at work to provide health care to small towns and cities in the rural Midwest. “Our goals for 2016 are to grow our specialty pharmacy volume, grow our long-term care pharmacy business and continue our focus on the retail pharmacy operations,” said Dave Ru- eter, EVP of personnel at Thrifty White. “We have focused on meeting Medicare Five Star ratings, and we [have] some of the best metrics in the industry.” Striving to best meet the needs of its customers in today’s strenuous and costly healthcare landscape, Thrifty White remains focused on expanding programs and services that help improve the health and well-being of its patients. its centralized specialty site will obtain URAC ac- One area in which the smaller regional chain creditation by July. The model allows patients to has taken the lead is in medication synchroniza- pick up specialty medications in their local store, Thrifty White tion. Kicked off in November 2011, the program or receive them via the home delivery program, synchronizes all of a patient’s prescriptions and which is licensed in all 50 states. enables patients on multiple medications to pick With the new model in place, the company up their prescriptions at once. On the day of has been able to gain access to multiple limited pickup, the pharmacist will review the prescrip- specialty networks, including Blue Cross Blue tion list, monitor changes after doctor or hospital Shield of North Dakota, North Dakota Medicaid visits and check for possible drug interactions. and several large employer groups. “The number of patients enrolled in the medi- The focus for 2016, said Rueter, is to build HQ: Maple Grove, Minn. cation synchronization program continues to awareness for its specialty program and offer 2015 sales: $468 million grow. Over 61,000 patients now receive their its local, face-to-face pharmacist relationships to % change vs. 2014: 8.1% No. of stores: 92 medications this way. Patients love the conve- more specialty patients. No. of stores with Rx: 91 nience of the program, and it helps improve their To help further support both medication Avg. store size: 4,100 sq. ft. medication adherence. Our overall proportion of synchronization and specialty pharmacy is the Rx sales: $371 million days covered is 355 days,” Rueter said. company’s Affiliated Pharmacy program for in- % of sales from Rx: 93.6% While improving medication adherence dependently owned pharmacies. Program par- Sales per store: $4.3 million among its patients remains a significant focus, ticipants can purchase goods and services under Source: Company reports Thrifty White also has set its sights on growing nationally negotiated agreements, gain access to its specialty pharmacy volume. According to the purchase from the generic warehouse and take cations that have been converted, and there are company, its specialty pharmacy sales increased advantage of a comprehensive suite of programs plans to convert an additional 13 stores this year. 50% last year. For 2016, it is expecting 25% and pharmacy solutions — notably, specialty The Healthy Outcomes pharmacy features a growth in specialty pharmacy sales. pharmacy and medication synchronization. For kiosk drop-off and pick-up counters; wellness In August 2015, Thrifty White began rolling 2015, 82 affiliate stores had annual volume of rooms for patient consulting; immunizations out its new specialty pharmacy program, and more than $192 million. and clinical services; a patient education kiosk; now offers a complete suite of specialty manage- In addition, the company continues to convert an ask your pharmacist desk; a digital television ment services through a combination of in-store stores to its Healthy Outcomes pharmacy design, for patient programs and services; and a phar- and centralized teams. The company expects that which debuted in 2012. There are currently 32 lo- macy drive-through.

35 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Creating an omnichannel transformation

By Antoinette Alexander

It has been nearly 90 years since the late Wood T. Brookshire opened in downtown Tyler, Texas, a quaint little grocery store that would eventually grow into a 150-plus store chain operating under the banners of Brookshire’s, Super 1 Foods and Fresh by Brookshire’s. In-line with its long-standing tradition of delivering outstanding customer service, Brookshire Grocery is working to personalize the shopping experience and modernize its store locations. It’s a move the company no doubt hopes will help it better compete with rivals. One key initiative is a three-phase project designed to digitally transform the grocer’s business and modernize its stores. Phase one, launched in November 2015, increased data integrity and visibility to better understand customers, the company stated. alty card. “By 2020, it is projected that millennials will According to the company, gaining a deeper go from 5% of the buying power to close to understanding of shopper behavior, history Brookshire 20% of buying power. This generation grew and needs has enabled it to more quickly and Grocery up with cell phones in their hands, with lap- proactively adjust to demand, resulting in tops, with tablets — they are very digitally greater sales and customer satisfaction. engaged,” stated John D’Anna, SVP and CIO Through this continued partnership, the of Brookshire Grocery, when announcing the grocer stated that it will continue its omnichan- initiative. “Our business has to simplify every- nel transformation with the development of thing for that customer.” new mobile apps, geofencing and an upgrade The grocer is utilizing SAP technology, such to its POS technology. The full digital transfor- HQ: Tyler, Texas as the SAP Hybris Marketing solution and the mation is expected to be complete in late 2017. 2015 sales: $2.5 billion SAP Customer Activity Repository applica- Meanwhile, Bradley W. Brookshire is set- % change vs. 2014: 14% No. of stores: 151 tion, to gather actionable information to more tling into his expanded role as chairman and No. of stores with Rx: 117 effectively create an omnichannel customer CEO of the grocer. In December, the company Avg. store size: 40,000 sq. ft.; 80,000 sq. ft.* experience. According to the company, these announced that Rick Rayford retired as presi- Rx sales: $300 million technologies enable it to personalize the shop- dent and CEO. % of sales from Rx: 12% ping experience by knowing who each cus- Grandson of the company’s founder, Wood Sales per store: $16.5 million tomer is and his or her purchase history, and T. Brookshire, Brookshire has served as chair- *Warehouse-style Super 1 Foods average 80,000 sq. ft. Source: Company reports, DSN estimates by communicating with customers in real time. man of the board since 2007 and is part of the Through its partnership with SAP and SAP third generation of the Brookshire family to consulting partner /N SPRO, phase one of the lead the company. He has 38 years of service ing debt. Rivals Kroger, H-E-B and Albertsons customer-centric program included embed- and has served in various leadership roles, in- were named by analysts as potential buyers. ding customer data into business processes cluding store director, director of distribution However, in November, Brookshire Grocery and enabling stores to connect with custom- and EVP of corporate development. stated that it was no longer for sale. According ers at a more contextual level. This includes The grocer also made headlines in 2015 to published reports, a brief company state- providing personalized promotions that go when published reports stated that the com- ment said, “the process in which it has been straight to the company’s mobile app and are pany was exploring a sale that could value engaged to explore a possible sale of the com- automatically loaded on the customer’s loy- the company at as much as $1 billion, includ- pany has been terminated.”

36 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report DME acquisition, specialty driving growth

By David Salazar

Discount Drug Mart closed out its fiscal year 2015 in March with a 7% bump in sales over 2014, and the company’s VP pharmacy Pete Ratycz at- tributes it to a few strategic moves, as well as its efforts to strengthen the family-owned, Medina, Ohio-based chain’s customer service. One driver of Discount Drug Mart’s 2015 growth — and its robust front-end, which made up 55% of its sales last year — was its acquisition of Hastings, a 30-year old, family-owned professional medical equipment company. Add- ing Hastings’ products and services to Discount Drug Mart, Ratycz said, has expanded both its offerings and customer base. “That has provided us a strong strategic fit and complement to our existing home healthcare solution by providing additional product offerings,” Ratycz told Drug Store News, noting that it now offers motorized scooters and wheelchairs, hospital beds and stair lifts. “And aging their chronic or complex disease states,” those are patients we may not have had access Ratycz said. “We do that through individualized to before from a prescription standpoint.” support, through patient care coordinators, 24/7 Discount Also bringing in new customers for Discount access and ... financial support, which are all im- Drug Mart Drug Mart are three recently opened retail clinics portant when it comes to assisting a specialty pa- that are operated by local health system Metro- tient with their healthcare journey.” Health. Though Ratycz said the effects of the clin- Discount Drug Mart also is focusing its efforts ics were marginal for much of the year, he said on providing better customer service, and to that that much of their impact on revenue would be end opened up a “contact center” that handles felt in the fourth quarter and that he expects it to calls coming into different locations — an effort be beneficial to the company in the coming year. that Ratycz said frees up in-store personnel to HQ: Medina, Ohio “The clinic feature is a great fit with allowing better help customers at the locations. 2015 sales: $662 million* us to support our customers’ one-stop shop- “Through our patient care coordinators that % change vs. 2014: 7% No. of stores: 73 ping needs for products and services they might are answering the phones, we can promote other No. of stores with Rx: 73 choose,” Ratycz said. “The industry data out services, whether that’s medication synchroniza- Avg. store size: 25,000 sq. ft. there supports consumer acceptance of the in- tion or other patient-centric programs we might Rx sales: $300 million* store clinic model, whether it has convenient be running,” Ratycz said. “There’s that ability to % of sales from Rx: 45% locations, flexible hours or the flexibility ofac- engage, and we can control that message with the Sales per store: $8.6 million cepting walk-ins. Combine that with the benefit contact center.” *Includes subsidiaries; projected for fiscal year ending March 31, 2016 Source: Company reports of processing a prescription — and quickly pro- The ability to share information about phar- cessing that prescription — and it’s no surprise macy offerings with customers through the that there’s been rapid adoption of the concept.” contact center works in-line with the company’s phasis on preventive care, as well. Discount Drug Mart also is finding new cus- goal of expanding services that its pharmacists “Growing our immunization vaccination tomers through its growing specialty pharmacy provide. As Discount Drug Mart moves into its totals is very important,” Ratycz said. “We’re services, which it offers through Ohio-based 2016 fiscal year, it also is working on growing the looking to expand our preventive health-and- Gentry Health Services. number of customers reached by such services as wellness screenings and try to tailor those to local “Gentry Health Services has allowed us the op- medication therapy management and medica- markets and local employees, as well as expand- portunity to expand our services and provide our tion synchronization. And going alongside the ing into transition-to-care programs with local patients a better solution when it comes to man- focus on patients’ treatment regimens is an em- healthcare providers.”

37 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Pilot program provides free asthma screening

By Richard Monks

With a pledge to promote wellness throughout its stores, millions of shoppers in Northern California and Nevada turn to Raley’s for a variety of pharmacy and health-related products and services. “We have the ability to utilize great food and pharmacy to promote health and happiness,” VP pharmacy and wellness Lee Worthy said, explaining the link between traditional medicine-based health care and what people eat. “As Hippocrates said, ‘Food is medicine.’” Raley’s, whose stores operate under four different banners, has become an integral part of people’s lives in the communities in which it operates, he said, noting that many of the company’s stores are located in rural and underserved areas. Worthy said that many of Raley’s pharmacists have carved out long careers with the company, allowing them to establish close relation- tion dedicated to maintaining healthy air and ships with their patients and become essential preventing lung- and other air-pollution related parts of these people’s healthcare teams. diseases, on a month-long pilot asthma screen- Raley’s “Raley’s stores have been extremely active in ing project that provides free in-store asthma the communities we serve — on a store-by-store screenings by Breathe California staff and medi- basis and as a company,” Worthy said. “We are cal volunteers. trusted, involved members of these communi- “Customers are screened, provided asthma ties, and our pharmacies take great pride in pro- education and trigger reduction materials and viding the highest levels of care, one individual supplies, and will have time to consult with at a time.” healthcare professionals in a relaxed environ- That level of dedication to its patients has ment,” Worthy said. “Each patient will leave HQ: West Sacramento, Calif. seen Raley’s recognized as one of the top pro- with their printed spirometry test results with 2015 sales: $3 billion viders of pharmacy customer service in the appropriate recommendations to pursue care.” % change vs. 2014: 4.2% No. of stores: 128 United States for the past two years. In addition, he said, the 10 pharmacies and No. of stores with Rx: 96 “We are extremely proud of the professional Breath California are offering free smoking ces- Avg. store size: 42,000 sq. ft. service that our pharmacists and pharmacy staff sation kits to patients looking to become tobac- Rx sales: $277 million provide to their patients every day,” Worthy co free. The drive to get smokers to quit comes % of sales from Rx: 9.2% said. “They take great pride in providing the on the heels of Raley’s decision last year to stop Sales per store: $24.6 million highest levels of care, one individual at a time.” selling tobacco products. Source: Company reports, DSN estimates As pharmacists across the country continue “That decision,” Worthy said, “was our next to take on a greater role in patient care, Raley’s big step in ongoing efforts to provide healthier As it continues to make high-quality care the is expanding the services it provides its patients, options and to raise awareness about health centerpiece of its pharmacy operation, Raley’s he said. The company offers compounding ser- and wellness.” is taking advantage of technology to give its vices, special dosing for children, products and With California being one of the first states pharmacists more time to spend with patients. services for the elderly and pets, and alternative in the country to allow pharmacists to expand For example, the company operates a drug delivery systems for patients who cannot the scope of their practice, Raley’s has begun of- 13,500-sq.-ft. central fill facility near its West tolerate oral medications. fering travel medicines in many of its locations Sacramento, Calif., headquarters and is in the Recently, 10 Raley’s pharmacies teamed up and expects to incorporate this program and process of a chainwide rollout of McKesson’s with Breathe California, a statewide organiza- others into more stores going forward. EnterpriseRx pharmacy management system.

38 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Investing in online convenience, sustainability

By David Salazar

Though its last quarter of calendar year 2015 was shaken by the loss of company founder and former board chairman Rob- ert F. Weis, Weis Markets closed out a year during which it built on its founder’s legacy with solid numbers and a slew of improved stores and offerings. The grocer also kicked off 2016 by adding a new director of pharmacy operations, tapping CVS and Target veteran Crystal Osunde to oversee its 134 in-store pharmacies. Additionally, as part of a remodel of its Muncy, Pa., store, Weis Markets opened its first drive-through pharmacy on Feb. 11. And though many of Weis’ stores have pharmacies, much of its focus in the past year has been on strengthening its front-end offerings — including several remodels and about 10 grand re-openings, as well as a rei- magining of in-store concepts its stores can offer customers in Pennsylvania, New Jer- sey, New York, West Virginia and Maryland. offering customers an opportunity to pur- Weis Markets Part of Weis’ 2015 strategy involved reno- chase more than 900 beers — including lo- vating about 10 stores and bringing on Rich- cally brewed products from Riepstine’s Pub, ard Gunn, formerly of K-VA-T, to be the Rusty Rail Brewing, Old Forge Brewing and company’s SVP merchandising and market- Elk Creek — to take out or enjoy in-store. ing. More stores also began featuring online Weis also continued its efforts to im- shopping, as well as in-store pickup. prove its stores’ energy efficiency — part of “Many of our customers have embraced the company’s larger sustainability efforts, Weis Online Shopping, which offers our which in 2014 included recycling 31,450 HQ: Sunbury, Pa. customers the best of both worlds: the in- tons of waste. In September, its store in 2015 sales: $2.9 billion store shopping experience with online, Lewisburg, Pa., had all of its lights replaced % change vs. 2014: 3.6% No. of stores: 163 time-saving convenience,” Gunn said in with fluorescent lighting, making it the No. of stores with Rx: 134 August when the company launched online first of the chain’s stores to feature 100% Avg. store size: 50,000 sq. ft. shopping at four northeastern Pennsylvania LED lighting. Rx sales: $274 million locations. “This is an extremely convenient “As a sustainable company, we are always % of sales from Rx: 9.5% service. Customers can place their orders at looking for ways to lower energy consump- Sales per store: $17. 8 million any time and schedule a convenient pick-up tion and reduce our carbon footprint,” Weis Source: Company reports, DSN estimates time that suits their schedule. These orders Markets VP store development R. Kevin also can be ready in four hours.” Small said. “In recent years, LED lighting also invested in the communities it serves As customers embraced the company’s has become a practical option due to im- by providing charitable donations to local ability to make it easier to quickly get in and proved performance and pricing. Ultimate- organizations. Each of the grand re-open- out of a store, Weis Markets was investing ly, our Lewisburg store’s new LED lighting ings that took place also featured charitable in a different way to get customers to stick will reduce our annual carbon emissions by donations to local organizations, including around — the beer café. 594 tons, which is equivalent to taking 115 food banks, school districts and fire compa- Though Weis’ first in-store beer café cars off the road.” nies. During September alone, Weis Markets opened in late 2014, 2015 was the year it While Weis invested in making its busi- raised $103,000 worth of donations to local expanded the concept to nearly 40 stores, ness more sustainable and convenient, it food banks.

39 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report

Elevating shopping experience via express format

By Antoinette Alexander

Providing in-store solutions has been Brook- shire Brothers’ hallmark since it first opened its doors in 1921. Today, that has yet to change. That’s one reason Brookshire Brothers added a pharmacy division and opened its first pharmacy in 1992, the company stated. And, as healthcare evolves, its pharmacists are working to spend more time counseling customers and educating them in all aspects of wellness and medication therapy. The continued focus on health is evident in the company’s recently opened Canyon Lake, Texas, location, which features a pharmacy with immunizations, medication consultations, health screenings and a convenient drive-through. To help patients ease the pressure of rising healthcare costs, the company invites its pharmacy patients to take advantage of its B•BROS RX $AVER prescription savings plan, which offers lower prices on a large assortment of In making the announcement, president and commonly prescribed drugs. For added conve- CEO Jerry Johnson stated, “the sale of these loca- nience, there’s also an online prescription refill tions enables us to focus on our core business — Brookshire service available. providing an exceptional shopping experience Brothers Meanwhile, enhancing the shopping experi- for our customers in all of our formats, includ- ence at the front of the store also remains a high ing the recently launched Brookshire Brothers priority for the employee-owned retailer. Express banner.” In the new Canyon Lake store, for example, The company’s express format blends the shoppers will find an onsite growler bar that “best” of a traditional supermarket with a con- serves Texas craft beer on tap. Wine by the glass venience store, according to the company. This is also available with happy hour specials and hybrid approach allows maximum flexibility in HQ: Lufkin, Texas featured wine and beer samplings. The Canyon tailoring the store to the community. Most Ex- 2015 sales: $1.3 billion Lake Café Patio and Outdoor Garden featured press stores offer hot delis, produce and fresh % change vs. 2014: 8% No. of stores: 111* musicians, storytellers and singers throughout baked good. Some stores have pharmacies that No. of stores with Rx: 73 the weeks of the grand opening in February. provide vital services to their communities. Avg. store size: 14,250 sq. ft. This spring and summer, it’s expected to be a The news came one year after the compa- Rx sales: $273 million gathering place for the community, the company’s acquisition of the assets of David’s Su- % of sales from Rx: 21% ny noted. permarkets, a 25-store chain located in North Sales per store: $611.7 million In addition, the store’s Canyon Lake Café has Central Texas. *Retail outlets incorporating grocery stores, convenience stores, as well as free-standing pharmacy, tobacco and petrol locations. a piece of the Canyon Lake High School gym’s Today, the company’s assets include 111 re- Source: Company reports, DSN estimates sideline hanging on the wall, as well as a rotat- tail outlets incorporating grocery stores, conve- ing exhibit of student and community art. nience stores, as well as free-standing pharmacy, Foundation tournament’s inception have ex- In August 2015, the company made head- tobacco and petrol locations. ceeded a million dollars. The funds are divided lines when it finalized the sale of 26 of its Polk The company also serves the communities in based on the organizations’ needs and applica- Pick-It-Up stores to Partners Investors C-stores. which it serves through such events as its Chari- tion requests. The grocer retained its Polk Pick-It-Up loca- table Foundation golf tournaments. Since 2008, The 2016 recipients included 15 nonprofits tions in Hudson, Central Heights, Central and Brookshire Brothers has invited its vendors to and three education foundations. In January, Wells, Texas. Brookshire Brothers acquired Polk play in two Charitable Foundation golf tourna- trustees and company executives presented Oil in 2007. ments each year. Proceeds since the Charitable more than $110,000 to the recipients.

40 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Bartell elevates immunization services

By Antoinette Alexander

With a new president and CEO at the helm and a string of initiatives on the agenda, Bar- tell Drugs continues to carve out its niche in this highly competitive industry and further strengthen its foothold as a regional innovator. The rapid changes in the national healthcare environment have demanded a significant uptick in pharmacy operations and services. To meet these needs, the company is not only improving its office systems via a robust enterprise reporting process that will streamline and automate a number of back-office functions, but is also opening additional locations and clinic facilities, launching new programs and continuing with established programs that have a proven track record. Beginning January 2016, Bartell Drugs became one of the only pharmacies nationally to implement the “trifecta” of immunization services: reporting administered vaccines to the open additional clinics as it expands its store lo- state registry, forecasting additional vaccina- cations. Through its collaboration with Group tion opportunities at the point-of-care and of- Health Cooperative that began in February Bartell Drugs fering patients an official Department of Health 2013, the company has eight CareClinic loca- sealed certificate. tions staffed by Group Health nurse practitio- Through its partnership with Scientific ners and physician assistants, with two addi- Technologies, a public health informatics com- tional clinics slated to open in 2016. pany, the pharmacy has implemented Scien- “The CareClinic partnership between two tific Technologies’ bi-directional Immunization Seattle-based organizations is a great example Interface, ImmsLink, into its workflow so that of innovation and collaboration to meet the pharmacists can review patient immunization needs of the communities we serve,” said Bar- HQ: Seattle histories and vaccination opportunities in real tell Drugs chairman George D. Bartell. “While 2015 sales: $469.7 million time. This vaccine forecaster takes the uncer- it’s an exciting business model, the ultimate % change vs. 2014: 7% No. of stores: 64 tainty out of advocating for additional shots by goal is the health and wellness of patients.” No. of stores with Rx: 64 confirming for pharmacists when a patient is Bartell had been the company’s CEO since Avg. store size: 15,000 sq. ft. due for immunizations, thereby enhancing the 1990, but in 2015 passed the gavel to former REI Rx sales: $263 million patient care experience. executive Brian Unmacht, who had served on % of sales from Rx: 56% Furthermore, patients have secure access to Bartell Drugs’ board of directors since 2011. Un- Sales per store: $7.3 million their own immunization records via Scientific macht joined the company in January 2015 as Source: Company reports, DSN estimates Technologies’ MyIR patient portal. Patients can president — becoming the first person outside sign up through any Bartell Drugs’ pharmacist, the family to hold the position. In April 2015, and checkout processes, and expanded product then go home and have free online access to the company announced that Unmacht also had selections, including beer growler refill stations, their records. assumed the role of CEO. Jean Bartell Barber is grab-and-go food selections and in-store gour- Since the start of this flu season, Bartell’s the company’s vice chairman and treasurer. met ice cream and coffee beverages. In 2015, the Immunization Program has helped protect Within the past few years, the company also retailer had major remodels at two stores and more than 60,000 Seattle-area residents from has been working to enhance the customer ex- minor modifications at several others, and five illness through pharmacists administering a perience via its “next generation” store format. more remodels are planned for 2016. In addi- flu vaccine. The format features improved and more ef- tion, Bartell Drugs will be opening two new Meanwhile, the company is continuing to ficient LED lighting, redesigned store layouts “next generation” locations in 2016.

41 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Aligning food, pharmacy and infusion services

By Richard Monks

The debut of Schnuck Markets’ initial pharmacy in 1970 made the company one of the first supermarket operators in the St. Louis area to offer groceries and prescriptions under the same roof. It also established the company as a pioneer of the food/drug concept. Executives said that legacy has helped make the 99-store chain with 94 pharmacies the go- to pharmacy provider for patients in St. Louis and the four surrounding states in which Schnucks operates. “There are several factors that attract new patients to our pharmacies and keep current patients coming back,” VP pharmacy Mike Juergensmeyer said. “It all starts with our great people who work in our pharmacies — both our pharmacists and our technicians ex- cel in customer service.” That high degree of service, he explained, has been a hallmark of Schnucks’ operation at $4 for a 30-day supply and $10 for a 90-day since 1937, when Edwin Schnuck opened the regimen. Similarly, the company’s Pet Meds wholesale meat business that would quickly program offers more than 150 $4 and $10 pre- Schnuck switch its focus to retail and go on to operate scriptions for dogs and cats. Markets food and drug stores in Missouri, Iowa, Wis- With pharmacy in the 21st century meaning consin, Illinois and Indiana. more than just filling prescriptions, Schnucks “It’s all part of the one-stop shopping expe- also provides patients with convenient access rience and nourishing the lives of our custom- to flu and shingles vaccines, and more than ers and patients,” Juergensmeyer said. “Their 150 of the company’s pharmacists are APhA- health and wellness is one of our top priorities. certified diabetes specialists. Customers doing their grocery shopping for Eight years ago, Schnucks entered the spe- HQ: St. Louis their families can also pick up their prescrip- cialty pharmacy market with three specialty 2015 sales: $2.7 billion tions and vice versa. We want to make it easy pharmacies in the St. Louis area and one each % change vs. 2014: 0% No. of stores: 99 for them.” in Springfield, Ill., and Rockford, Ill., catering No. of stores with Rx: 94 Beside its top-notch customer service, the to patients dealing with a host of chronic con- Avg. store size: 61,500 sq. ft. company’s pharmacies ensure that patients ditions that require special therapies. Rx sales: $256.5 million get timely and affordable access to their medi- Schnucks’ foray into the specialty market % of sales from Rx: 9.5% cations. For instance, Schnucks offers four oral also saw the company create Schnucks Infu- Sales per store: $27.3 million medications for breast cancer patients for $9 sion Solutions in 2013. Housed in the same Source: Company reports, DSN estimates per prescription. Four oral diabetes medica- 6,500-sq.-ft. facility used by one of the com- tions cost $2 a script, while five generic antibi- pany’s St. Louis-area specialty pharmacies, the infusion therapy is a safe and cost-effective otics — each in numerous dosages and deliv- infusion unit works with home health agen- alternative for patients to receive treatment ery forms — and several prenatal vitamins are cies and physicians throughout Missouri and conveniently and comfortably in an alternate provided at no cost. Illinois, allowing patients needing intravenous healthcare setting. Juergensmeyer stressed that generics play a medications to get those therapies without Because studies have shown that patients key role in Schnucks’ effort to make drug ther- having to visit a hospital. recuperate better at home, and because of the apies affordable for patients. Beside the free Juergensmeyer has noted that infusion is the emphasis American healthcare is putting on antibiotics and prenatal vitamins, the compa- natural progression of the Schnucks specialty shortening hospital stays, the country is seeing ny offers more than 200 generic prescriptions pharmacy division, stressing that outpatient a growing need for infusion providers, he said.

42 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Investing in digital health innovations

By Antoinette Alexander

Aurora Health Care, a Wisconsin-area healthcare provider that serves patients via its integrated healthcare system of hospitals, clinics, home care, pharmacies and physicians, not only strives “to have the best pharmacies in Wiscon- sin,” but is also not afraid to embrace innovative technology. Aurora Pharmacy operates a chain of pharmacies that tout an array of services, savings and solutions. Located in neighborhoods, clinics and hospitals across Wisconsin, many of the locations are full-service drug stores carrying everything from vitamins to pain relievers and cough-cold remedies to home medical supplies and more. Promising to provide patients “more than just a prescription,” the pharmacies offer such services as one-on-one consultations and regular “market basket” comparisons to provide con- sistent pricing with other pharmacies, perhaps pliance. OTM’s reporting capabilities also help even at a lower cost. pharmacies meet certain payer requirements. Aurora’s pharmacy services also include vac- Aside from its pharmacy locations, Aurora Aurora cines to protect patients from influenza, shingles, also operates several retail-based QuickCare Pharmacy tetanus, whooping cough, pneumonia and other Clinics. The first QuickCare Clinic opened in infections categorized as pneumococcal disease. 2004 and, according to Aurora, it currently Patients with diabetes can take advantage of has eight clinic locations in Wisconsin inside the pharmacy’s sharps containers exchange pro- Walmart Supercenters, Piggly Wiggly and Au- gram — free of charge. rora Pharmacy Mequon. Recognizing that managing medical condi- Demonstrating that it doesn’t shy away from tions can be stressful and time consuming, the innovative technology, Aurora turned heads HQ: Elm Grove, Wis. company offers Aurora Specialty Pharmacy ser- when it announced last year that it was taking 2015 sales: $251.3 million vices that include help with complicated insur- a lead investor role in StartUp Health, a global % change vs. 2014: NA No. of stores: 71 ance paperwork, deliveries, full explanations of health innovation company with more than 100 No. of stores with Rx: 71 how to most effectively use the medicines and digital health portfolio companies, to help ac- Avg. store size: 3,500 sq. ft. (free-standing), 1,000 sq. ft. connection with a physician’s care team. celerate the review and adoption of innovations (clinic pharmacies) In 2014, specialty pharmacy group purchas- aimed at transforming the delivery of care. Rx sales: $231.2 million ing organization Asembia announced an agree- As a key investor in StartUp Health, Aurora % of sales from Rx: 92% Sales per store: $2.4 million ment with Aurora to collaborate on a host of spe- is afforded early access to proposed innovations cialty pharmacy patient program offerings, and and can work side-by-side with entrepreneurs Source: Company reports, DSN estimates help Aurora deliver enhanced therapy manage- to implement solutions in Aurora’s provider ment services to specialty patients via Asembia’s and patient communities. The collaboration also Aurora’s CEO, when announcing the news. ReachRx Online Therapy Management system. provides Aurora with first-look opportunities “We’re living in an age where every aspect of Asembia’s OTM is a patient tool that allows to invest in, pilot and implement from StartUp our lives is being reinvented by technology; the pharmacies to track and optimize drug utiliza- Health companies around the globe. opportunity now is to streamline how the most tion and, thus, enhance clinical outcomes. OTM “The Aurora and StartUp Health collabo- effective innovations can be applied to improve includes custom intervention scripts for drug- ration is significant because together we can the health and wellness of our patients. With and disease-specific side effect management and quickly identify the next generation of solutions StartUp Health, we can do this more quickly therapy protocols for increased medication com- for the people we serve,” stated Nick Turkal, and efficiently.”

43 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Lewis Drug boosts healthy food selection

By Antoinette Alexander

A lot has changed since the company’s inception in 1942, but for Lewis Drug one thing has remained a constant throughout the years — to be the neighborhood store and pharmacy for its shoppers. This mission has perhaps never been as critical as it is today. When asked about key health-and-wellness initiatives for the year, Scott Cross, EVP and CFO, said, “we continue to partner with local physicians and health systems to improve medication adherence and patient outcomes. We are working with local health systems to gain access to their patient records to provide our pharmacists with a complete record of the patient’s medical history (compliance data, immunizations, etc.). In addition, our pharmacists will work alongside physicians in their clinics to provide knowledge of medication therapies and stress the importance of medication adher- nerics directly from manufacturers, improving ence to patients.” the process in which our pharmacies order and The company’s focus on medication adher- receive products from our distribution center Lewis Drug ence comes as no surprise as poor adherence and negotiating more favorable terms with results in $290 billion annually in avoidable our wholesaler.” costs in the healthcare system. Meanwhile, the retailer has been working to Such efforts at Lewis are in addition to elevate its role as a wellness destination in the the company’s Smart Sync program, which front of the store by boosting its selection of launched about four years ago. The program healthy alternatives in the food and beverage allows patients to have their prescriptions departments. Cross said that completion of the filled on the same day each month. Each healthy food and snack departments in each HQ: Sioux Falls, S.D. month, a Lewis pharmacist reviews patients’ of its large format stores is slated for second 2015 sales: $216 million prescriptions, monitors changes after any doc- quarter 2016. The departments will include or- % change vs. 2014: 10% No. of stores: 48 tor or hospital visits and checks for possible ganic, gluten-free and natural products. No. of stores with Rx: 46 drug interactions. While there’s no denying that shoppers Avg. store size: 4,000 sq. ft. and 40,000 sq. ft.* The pharmacy retailer also has been explor- are increasingly interested in making health- Rx sales: $156 million ing unit-dose packaging for its retail prescrip- ier food choices amid a rise in consumer- % of sales from Rx: 72% tions as a way to further improve adherence. driven health care, Lewis’ new healthy food Sales per store: $4.5 million “We continue to expand this part of our busi- departments also are in line with the latest *Operates two formats Source: Company reports ness. This service is very labor intensive, so we food trends. are in the process of constructing a 10,000-sq.- According to a 2015 Nielsen report, “We Are ft. pharmacy that will allow us to add robotics What We Eat: Healthy Eating Trends Around boomer (50-to-64 year olds) and 12% of Silent and utilize central-fill capabilities,” Cross said. the World,” Generation Z and millennials are Generation respondents (ages 65 and older) The industry continues to battle declining leaders in the gluten-free movement. Thirty- are willing to do so. gross profits from prescription sales, and Lew- seven percent of Generation Z respondents Furthermore, Nielsen’s review of purchas- is is no exception. Acknowledging that it’s a (younger than 20 years) and 31% of millennials ing trends between 2012 and 2014 found that primary concern for 2016, Cross said, “we are (between the ages of 21 to 34 years) indicated sales of products with “natural” and “organic” making concerted efforts to lower our cost of that they are very willing to pay a premium for claims have grown 24% and 28%, respectively, goods by purchasing a higher volume of ge- gluten-free products, while only 22% of baby over the two-year period.

44 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Benzer Pharmacy aims for major growth

By David Salazar

Benzer Pharmacy CEO Alpesh Patel wants the chain, which currently has 53 locations across nine states, to have 600 stores by the end of the year. And though his is a big goal, it’s informed by the company’s growth in 2015, when it saw more than $125 million in pharmacy sales — a 40% increase over 2014. By mid-March, Benzer already had opened six new locations. Patel has a three-pronged strategy for getting his company to its goal, aside from his plan to personally purchase more than 30 locations with his business partner Man- ish Patel. One prong is reliant on investors, who also will purchase pharmacies to be added to the company’s roster, and another prong is based on mergers, in which Ben- zer takes over a majority share in an existing pharmacy. The majority of Patel’s plan relies on the market, but nobody has knowledge, nobody third prong: finding independents to become has resources, or nobody has the capacity by franchisees with the hope that a big draw for themself to get into specialty,” he said. “But Benzer an independent pharmacy owner is being if we take this group to 600 as we plan, you Pharmacy able to tap into the purchasing power that can tap into all the specialty networks — you comes from several independents constel- can step into limited drug distribution.” lated under one banner. If Benzer meets its goals in 2016, it will be “Currently, I have [about] 60 stores; my because 2015 was its year of preparation, in purchasing power is about $160 million,” particular with specialty. In July, the com- Patel told Drug Store News. “An indepen- pany hired Michael LaBrecque — who has dent owner buys about $3 million a year, so 30 years experience within the industry, in- HQ: Tampa, Fla. my cost of goods and their cost of goods has cluding several years at ExpressScripts — 2015 sales: $125 million about a 3% difference. So as soon as they join as Benzer’s VP specialty pharmacy. That, % change vs. 2014: 40% No. of stores: 53 me, they see in their bottom line 3% off the coupled with the October addition of Ryan No. of stores with Rx: 53 bat.” Rushing — formerly Walgreens’ senior di- Avg. store size: 1,800 sq. ft. And it’s not just purchasing power that rector of business development, community Rx sales: $125 million gets better when there are more franchisees, health solutions — to oversee new business % of sales from Rx: 100% Patel highlighted the fact that if there were development and 340B programs, made 2015 Sales per store: $2.4 million 30 Benzer locations in a city, each would ben- the year that the company prepared its in- Source: Company reports efit from a substantial ad buy, so the cost is frastructure for its expected growth, which spread around. As a result, “now you are cre- includes the company’s first specialty hub in port, Benzer also offers its franchisees hiring ating a brand,” Patel said. “By creating those New Orleans, opened March 11. and training support in order to emphasize 30 stores, … your revenue goes up because “What we hired them for last year was customer service. Patel said franchisees pay of that brand.” getting through the accreditation and system a fee of $800 a month, some of which goes Along with brand recognition and pur- setup to create a platform to take off for spe- toward advertising. chasing power, Patel said, is access to servic- cialty,” Patel said. “All they did last year was “My business is pharmacy — not makes, which franchisees can offer their patients, create that platform, so this year we started ing money from other people,” Patel said. particularly specialty pharmacy. marketing for the specialty.” “What we’re actually looking for is to get ev- “Everybody wants to get into the specialty Beside specialty and administrative sup- erybody united.”

45 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report New services, residency put patient first

By Antoinette Alexander

Patients’ ability to access quality, affordable health care in this nation, as well as diminished reimbursements, weigh heavy on the minds at Fruth Pharmacy, but this regional player is taking a proactive approach to meet the healthcare needs of its customers through expanded service offerings and programs. “Access to patients continues to be one of the biggest concerns, as well as diminished reimbursements. Access to payers and specialty products also is a concern. [And] the move to managed Medicaid looks to be yet another way of limiting networks and patient choice,” said Lynne Fruth, president and chairman of the 29-store chain. “Fruth continues to meet with state and federal lawmakers to help educate individual represen- tatives on the real impact on both patients and local businesses.” Determined not to rest on its laurels despite such challenges, Fruth Pharmacy has several Residency Program provides the resident the op- initiatives in play, including new technology to portunity to be involved with MTM programs, make prescription label reading easier for the vi- medication distribution and use process, immu- Fruth sually impaired. Developed by AccessaMed, the nization services, wellness programs and disease Pharmacy digital audio label speaks to the patient. The label state prevention programs. The primary site of permanently adheres to the prescription bottle or practice is located in Point Pleasant, W.Va., but package. The patient simply pushes a red button opportunities for practice development can be on the new electronic label and the instructions found throughout the different Fruth locations for taking the medicine will be provided to the and at the University of Charleston. patient in a clear and robust voice. “The residency will allow Fruth to continue AccessaMed is currently available at all phar- our efforts to advance the profession of phar- HQ: Point Pleasant, W. Va. macy locations and, according to Fruth, the com- macy forward in W. Va., and improve the clinical 2015 sales: $123.2 million pany plans to bolster marketing efforts. services we offer to our customers,” Fruth said. % change vs. 2014: 2% No. of stores: 29 “This is an important offering for our patients Additional health-and-wellness initiatives No. of stores with Rx: 29 that are sight and literacy challenged,” Fruth said. slated for the coming year include: Avg. store size: 8,000 sq. ft. Meanwhile, the company is looking to further • Point-of-care testing pilot with the Na- Rx sales: $105 million expand the number of in-store clinics. As of April, tional Association of Chain Drug Stores % of sales from Rx: 85% the company has three Express Care clinics in op- to screen for Hepatitis C and HIV. Acord- Sales per store: $4.7 million eration and another four clinics are slated to open ing to Fruth, its region has a large undiag- Source: Company reports by June. The company has elected to partner with nosed population; local and regional healthcare systems to operate • Education of pharmacists in preparation Health Department to help prevent the the clinics and, to date, has formed alliances with for naloxone dispensing without a pre- transmission of diseases brought on by four different partners. Looking ahead, the com- scription in West Virginia, Kentucky, and non-sterile syringe use; pany plans to expand the offering into many ad- Ohio to help stop overdose deaths; • Expansion of clinical services as it ex- ditional sites. • Support of and participation in Harm pands its Central Fill and Central Call Fruth also said the company has finalized an Reduction Programs in its communities. Center Facility; and agreement with the University of Charleston to For example, Fruth Pharmacy announced • Expansion of programs in specialty phar- continue a residency program. The University of in September that it made a donation of macy, medication synchronization and Charleston Fruth Pharmacy Community Practice 8,000 new syringes to the Gallia County compliance packaging.

46 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Enhancing customer experience via remodel

By Richard Monks

With a history dating back to 1932, Chan- dler, Ariz.-based Bashas’ Family of Stores has well-established roots as a local retailer who understands its customers. As one of the first supermarket chains to operate in Arizona, the company has grown up with the state and has been careful to keep its finger on the pulse of what shoppers want. In the last 10 years, the company has doubled its store base and now operates 118 outlets under four different banners, each catering to a different group of shoppers. Its Ba- shas’ stores are traditional supermarkets; AJ’s Fine Foods stores are gourmet and specialty stores; Food City targets the Hispanic community; and Bashas’ Diné Markets are located on Arizona’s Native American reservations and specialize in products traditionally used by these cultures. Executives note that pharmacy continues to to combine them with pharmacy staffs that go take on added importance for the company. the extra mile for their patients. “Bashas’ Family of Stores was built on a “It is the individual attention and pharma- Basha’s founding principal of quality service,” direc- cist accessibility that sets us apart. Our phar- tor of pharmacy Mike McKinley said. “Being macists seek out online discounts and co-pay Arizona’s hometown grocer is not just some- reducing coupons for our customer.,” he said. thing we say, it’s who we are. Our pharmacies “In 2015, our e-voucher programs saved our offer customers personal attention not found customers hundreds of thousands of dollars, at most national chains. Being on a first-name something that we are very proud of.” basis is the way our pharmacies do business.” Along those same lines, Bashas’ offers the Bashas’, he stressed, was built on quality Generic Med Plan, a program that gives pa- HQ: Chandler, Ariz. service — something from which it has never tients competitive pricing on the medications 2015 sales: $1.6 billion waivered over the years. McKinley said com- they use the most and a free prenatal vitamin % change vs. 2014: 6.3% No. of stores: 118 bining food and pharmacy under a single roof program for expecting mothers. No. of stores with Rx: 93 is an integral part of that service McKinley said that the company’s pharma- Avg. store size: 40,500 sq. ft. “We have a long history of dedication and cists are always available for consultations, Rx sales: $104 million commitment to our local community and that and most offer compounding services for % of sales from Rx: 6.5% continually helps to attract customers,” he hard-to-find prescriptions. Sales per store: $13.6 million said. “The one-stop-shop concept, where con- Over the past few years, Bashas’ has been Source: Company reports, DSN estimates sumers can have all of their needs met is mu- aggressively remodeling its store base. Since tually beneficial between grocery and -phar 2014, about a quarter of the company’s out- stays on the cusp of these changes and vows macy. In fact, many of our grocery promotions lets have either been expanded or refurbished. to make pharmacy an even bigger part of include pharmacy offers and options.” Patient wellness has been a centerpiece of this its business. With pharmacies in 41 of its 118 stores, Ba- effort with the revamped stores offering an ex- “We are remodeling our stores and phar- shas’ has incorporated a host of patient care panded mix of organic and healthy products. macies to enhance our customers’ experience and shopper loyalty programs into its health- McKinley stressed that as shoppers demand while shopping,” he said. “As remodels con- care operation. While many of those same pro- more from their grocery stores and pharmacy tinue, our expansion will include pharmacy grams can be found at other community phar- takes on a more central role in the country’s departments in stores that do not currently of- macies, McKinley said that few have been able healthcare system, Bashas’ is ensuring that it fer pharmacy services.”

47 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Becoming the Starbucks of retail pharmacy

By David Salazar

Ritzman Pharmacy wants to do for retail pharmacy what Starbucks did for coffee. “If you look at the coffee industry 20 years ago, you got your coffee at Circle K or 7-11. … There was no experience expected; you just walked in, got your coffee and left, ... and [Star- bucks] redefined what that experience was for people,” Ritzman Pharmacy COO George Glatcz told Drug Store News. “What we’re trying to do at Ritzman … is change that community pharmacy experience from being a transactional experience to being more of a healthcare experience.” It’s an ambitious goal, but Ritzman’s new approach, which goes along with a branding refresh that took place in fall 2015, is to “pioneer vintage care,” as Glatcz puts it. “We rebranded with the sense that … pharmacists 50 years ago would be a little bit more ingrained in your community; we’re a well-re- spected healthcare provider, versus just the per- clude arts and crafts. In practice, the Restores sec- son I go to get my prescription from,” Glatcz said. tion also features front-end Ohio-made products. The new approach to pharmacy starts with a Ritzman Revives is where Ritzman is ex- Ritzman new location for the pharmacist at the front of the panding on services that pharmacists can offer. Pharmacy store, and much of Ritzman’s format change has Glatcz said that when the company spoke to been focused on removing tasks from pharmacists customers, many said they wanted someone to to allow them to interact more with customers. help get their energy back, so the Revives sec- Ritzman has worked to centrally fill its specialty tion features nutritional supplements, as well offerings, as well as its medication synchroniza- as pharmacist services and biometric testing tion program, IN:Q, which offers a 28-day supply that can contribute to healthier living. of medication in pouches to ensure compliance. Several pharmacies are piloting a wellness HQ: Wadsworth, Ohio Along with making pharmacists more vis- program, where customers have blood drawn 2015 sales: $89 million ible and involved, Ritzman also is focusing and analyzed for depleted nutrients, and then % change vs. 2014: 8% No. of stores: 25** on four promises to its customers: creating a receive recommendations on how to exercise, No. of stores with Rx: 25 place for people to learn, creating a place to supplement and eat in a way that restores Avg. store size: 2,500 sq. ft.* gather, treating each customer as an individ- these nutrients. Pharmacists also are assisting Rx sales: $85.6 million ual and offering care beyond the prescription. customers with exercise regimens and helping % of sales from Rx: 96.2% The company has rolled out three programs them understand how to use data from wear- Sales per store: $3.5 million — Ritzman Restores, Ritzman Revives and able fitness devices — services for which cus- * Free-standing stores ** 13 free-standing, 11 grocery, 1 Med-Dose/infusion Ritzman Remedies, which also constitute the tomers are charged a fee. Source: Company reports three sections into which pharmacies are di- Many of the new Ritzman offerings, particu- vided, with different offerings in each area. larly those under Ritzman Revives, are aimed Ritzman Remedies focuses on such traditional at emphasizing the role of pharmacists as com- Glatcz said. “What better time and place for a pharmacy services as MTM and med sync, in- munity health providers — a role Glatcz said pharmacist to get more active in the primary care cluding IN:Q, which about 25% of Ritzman cus- that pharmacists are meant to fill in the current of a community than now? That’s what I mean by tomers opt into. Ritzman Restores looks to fulfill healthcare landscape. ‘pioneering vintage care.’ It’s not just about the both the educational and community-gathering “The Affordable Care Act is certainly insur- traditional pharmacy services that we provide, aspects of the company’s mission, offering edu- ing more people, but it’s also creating this huge but we’re creating an environment for people to cational sessions with a pharmacist that also in- void in the primary care space for patients,” come even before they need a prescription.”

48 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report New partnership, leadership in year of growth

By David Salazar

Pharmaca Integrative Pharmacy continued to expand in 2015, growing its footprint to 30 stores and fostering new pharmacy partnerships. The Boulder, Colo.-based chain also saw a change in leadership, adding a new president and CEO who took the reigns in January. The integrative pharmacy chain, which was launched in 2000, takes a holistic approach to health and wellness. Most of its stores contain a pharmacy, many of which offer compounding services. The chain’s pharmacies also offer immunizations — including travel immunizations and walk-in vaccinations against the flu, pneumonia, whooping cough and shingles — and a partnership that began in 2015 further expanded Pharmaca’s pharmacy services. In July 2015, the company announced a partnership with Diplomat Pharmacy, the nation’s largest independent specialty pharmacy, to provide patients access to specialty medication, a cat- tions have teams composed of naturopathic egory that has seen extensive spending growth doctors, homeopaths, herbalists, chiropractors, in recent years and is estimated will make up Ayurvedic practitioners, acupuncturists and Pharmaca 50% of drug spending by 2020. Partnering with massage therapists. the Flint, Mich.-based specialty pharmacy also So invested in these wellness offerings is gave Pharmaca access to Diplomat’s expertise in Pharmaca that it has several stores without phar- the field. macies, which it calls Pharmaca Wellness and “Our pharmacy model has always empha- Natural Beauty. One of the three new stores the sized the importance of providing our custom- company opened in 2015, in Los Altos, Calif., fea- ers with expert service and a broad selection of tures this store concept, which includes a beauty healthcare options,” Pharmaca’s VP pharmacy bar, and has on staff estheticians, a nutrition edu- HQ: Boulder, Colo. Stu Gratz said when the deal was announced. cator and counselor, and an herbalist. 2015 sales: $121.7 million “By partnering with Diplomat, we are expand- The Los Altos location became the chain’s % change vs. 2014: 4% No. of stores: 30 ing our services even further, strengthening our 30th store when it opened in April 2015, follow- No. of stores with Rx: 28 ability to help those in need and positioning our ing another California location in Laguna Hills Avg. store size: 4,200 sq. ft. pharmacy as a true full-service partner in health.” and a third Oregon location in Beaverton. Like Rx sales: $73 million And while robust pharmacy offerings are a other Pharmaca locations, the Los Altos store of- % of sales from Rx: 60% large part of Pharmaca’s business, the company fers workshops and events throughout the week, Sales per store: $4.1 million also emphasizes its front-end categories, in par- which can offer deals to customers in addition to Source: DSN estimates ticular beauty, natural remedies and vitamins, advice about managing stress, dealing with aller- minerals and supplements. This emphasis is gies and improving sleep. “I am excited for the opportunity to lead this present in all of the chain’s stores, some of which Coming off of its 2015 expansion, Pharmaca outstanding senior management team and group include Natural Beauty Bars, which focus on began 2016 with new leadership. In January, of hard-working, talented employees,” Willis beauty services — including makeup areas, wax- the company announced that it had appointed said when he was appointed. “I look forward to ing and threading services — and are staffed by Richard Willis to be its new president and CEO. a new chapter of growth for Pharmaca. The com- the Pharmaca estheticians. Willis succeeded Mark Panzer, who ran the company’s exceptional reputation of providing high And customers need not go to Pharmaca in pany from 2008 until his 2014 departure. Willis levels of customer service, while creating a best- search of a new skin care regimen or refined is a 25-year retail, distribution and publishing in-class product offering and store environment, eyebrows to get expert advice — various loca- industry veteran. has provided it with a strong market position.”

49 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Keeping pace with changing healthcare scene

By Richard Monks

With consolidation continuing in the community pharmacy industry, Hartig Drug has managed to hold its own as it goes head-to- head with some of the biggest players. President Keith Bibelhausen said there is a very simple reason why Hartig — which operates 20 retail stores in Iowa, Illinois and Wisconsin, as well as a durable medical equipment outlet, a pair of pharmacies that service long-term facilities and the MedOne Health- care Systems pharmacy benefits management company — has managed to thrive. “It’s the service provided by our staff,” he said. “The staff takes the time to work with patients and customers.” A company that traces its roots back more than a century when 22-year old A.J. Hartig opened his first drug store in Dubuque, Iowa, Hartig Drug also enjoys the customer loyalty that comes with being a local company with a including flu shots, travel vaccines and teta- highly recognizable brand name. nus-diphtheria-acelluar pertussis, whooping “We are embedded in the community,” Bi- cough and pneumococcal immunizations. Hartig belhausen said. “We are active with many non- As health care has changed in recent years, profit organizations. The principles in the or- Bibelhausen said that Hartig’s pharmacy staff ganization serve on many boards of directors, has become valuable resources for patients. and our staff is encouraged to be involved in “They actively work to assist Medicare Part the community.” D patients in their choosing of a plan that fits As the nature of the community pharmacy their needs, and they spend time assisting pa- has evolved over the years to a point where tients who seek sources of financial assistance consumers rely on their local drug store for for expensive prescriptions,” he said. HQ: Dubuque, Iowa everything from fill-in grocery trips to a wide The company’s pharmacies also have gone 2015 sales: $73.8 million range of healthcare services, Hartig has stayed out of their way to give patients an array of % change vs. 2014: 10% No. of stores: 23 current, shifting its strategies to keep pace options that help them comply with their pre- No. of stores with Rx: 22 with changing consumer demands. scriptions and drive outcomes. Avg. store size: 9,000 sq. ft. For instance Bibelhausen said that in the For instance, Hartig Drugs’ Med Pack Rx sales: $59 million past few years, Hartig has altered its product program packages monthly prescriptions in % of sales from Rx: 80% mix by reducing the breadth of its seasonal of- weekly planners, making it easy for patients to Sales per store: $3.2 million fering and beauty care items, and expanding take their medications. Its Redi-Refill program Source: Company reports, DSN estimates the number of pantry items and health-related automatically alerts patients when they need products it carries. Some Hartig Drug stores to refill a prescription for a maintenance drug. gram gives members 90-day supplies of doz- even have full-service postal stations. Once the order is filled, patients receive a mes- ens of generic drugs for 99 cents apiece, as well In addition, he said the company has added sage that their prescription is ready for pickup. as discounts on thousands of other generics new services to its offering, including prescrip- Bibelhausen said the company’s medication and branded drugs. tion delivery. therapy management program aims to take On the environmental front, Hartig Drugs Like its peers, Hartig Drug has seen its the confusion out of MTM by closely moni- recycles vials from prescriptions, and will take pharmacists play a more integral role in pa- toring patients’ drug therapy and by working back unwanted medicines to ensure that they tient care. The chain has a broad immunization with physicians to optimize disease therapy. are disposed of safely and not flushed into lo- program that offers a range of vaccinations, Meanwhile, a low-cost prescription pro- cal water supplies.

50 DRUGSTORENEWS.COM RX 2016 CHANGE TO WIN Powerx report Keeping pace by prioritizing patient care

By Richard Monks

Astrup Drug has found success by providing its customers with aspects of both a traditional drug store and unique retailer. Founded in 1952, the Austin, Minn.-based company operates 17 community pharmacies, a telepharmacy, a specialty pharmacy and three long-term care pharmacies in southern Minneso- ta and northern Iowa. Beside the traditional drug store mix, seven of Astrup’s stores — which operate under the Sterling Drug banner — include expansive gift shops, and a pair of the locations has gas stations. Two stores offer Smart Clinic walk-in health centers. “While the practice has changed some over the last several decades, the principles put in place in 1952 still hold true today,” the company said. “Patient care is our top priority.” As patients have come to rely on their phar- sion and were getting their prescriptions filled macies for a wider range of healthcare servic- at Sterling were given a smart card that they es, Astrup has kept pace with these changing could use to track their blood pressure on the demands by offering a wider range of services. PharmaSmart kiosks in Sterling stores. Astrup Drug All of the Sterling Drug stores offer immuniza- “One of the key findings of the pilot program tions for influenza, whooping cough, shingles is the importance of personal interaction between and pneumococcal pneumonia, as well as teta- the patient and the pharmacist,” Astrup presi- nus, diptheria and pertussis (TDAP) shots. dent Tim Gallagher said after the program was In addition, Sterling pharmacies provide concluded. “Pharmacists have the opportunity free delivery of prescriptions and other prod- to extend the care team and optimize therapy to ucts, medication therapy management, free positively impact patient outcomes.” blood-pressure trackers and medication fla- The same level of importance that the com- HQ: Austin, Minn. voring. Many also do compounding. pany has attached to managing high blood pres- 2015 sales: $73.2 million % change vs. 2014: 2.7% Because many of its outlets are larger than sure also can be seen in its other patient care No. of stores: 17 the prototypical drug store, Sterling has been services. “Medication therapy management can No. of stores with Rx: 17 able to offer durable medical equipment for provide some absolutely incredible benefits to Avg. store size: 21,000 sq. ft. such conditions as diabetes, high blood pres- patients on multiple medications struggling Rx sales: $51.3 million sure and cholesterol. with two or more diseases,” the company said. % of sales from Rx: 70% Sales per store: $4.3 million With specialty care services continuing to play “There is no better person to review medications a larger role in community pharmacies, Sterling and give advice on how to improve health than Source: Company reports, DSN estimates has increased its presence in this area, offering a pharmacist.” specialty care services for rheumatoid arthritis, Among the most unique healthcare offerings day, seven days a week. psoriasis, Crohn’s disease, multiple sclerosis, available to Sterling Drug patients is LifeAid. A Meanwhile, Astrup’s long-term care pharma- hepatitis C, ulcerative colitis and osteoporosis. personal emergency response system that tar- cies work with nursing homes, assisted living Last fall, Astrup teamed up with blood- gets people — primarily seniors — who are at facilities and other healthcare institutions to pro- pressure kiosk maker PharmaSmart and non- risk of injuring themselves and can not get to vide patients with all their medication and medi- profit health group HealthPartners in a pilot the telephone to contact help. If a LifeAid user cation-related needs. Its telepharmacy operation, program designed to highlight the potential is in need of help, he or she simply pushes a but- which went into effect last fall, provides patients of community pharmacists in helping patients ton on the LifeAid device and is immediately in rural locations — where it is often difficult to with hypertension. Under the program, 270 connected to a trained care specialist who then find a doctor or other healthcare professional — HealthPartners members who had hyperten- sends help. The service is available 24 hours a quick-and-easy access to a pharmacist.

51 DRUGSTORENEWS.COM