Trends in the Pharmacy Industry in 2019

4 Trends Considered

Posted on CashFlow It 17/09/2019

We’ve recently been researching trends in the pharmacy industry in 2019-2020, and there’s some interesting information coming to light!

We’ve also been surveying some of our pharmacy manager connections on LinkedIn and a lot of what is mentioned in this “Medical Director” article entitled “6 Predictions shaping the future of pharmacy in 2019” is certainly coming up as topical.

Prominent amongst the six, we identified:

1. Electronic prescribing
2. Non-Contact Dispensing Systems (Robotics)
3. Natural medicines
4. Medical Cannabis regulation

Let’s consider these quickly in more detail:

1. Electronic Prescribing

Medical Director writes:

"Electronic prescribing will continue to gain momentum across Australia, following the Federal Government’s decision in 2018 to increase its investment in new medicines by $2.4 billion. The decision means $28.2 million will be injected into the initiative over five years from 2017–18 to 2021-2022, to upgrade the e-prescribing software system used by clinicians to prescribe medicines."

This initiative is intended to improve PBS efficiency, compliance, and drug safety, but it also has cost implications for pharmacies as they are required to implement and integrate softwares and data requirements.

2. Non-Contact Dispensing Systems (Robotics)

A recent Drug Topics article on “The Future of Pharmacy Automation,” states

"...the mechanics of medication dispensing are mind numbingly tedious, repetitive, and nearly impossible to perform without error. [but there is] a solution: Automation. Dispensing robots never get bored, never get distracted, and make far fewer mistakes than their human counterparts. And in this era of ever-shrinking prescription margins, dispensing robots free up pharmacists and technicians for more profitable clinical services that require human judgment."

The consequences of this statement are even more mind boggling for the pharmacy industry:

“Dispensing medications will eventually become fully automated using various types of robotics,” predicted Al Babbington, CEO of PrescribeWellness, a Tabula Rasa HealthCare company. “Clinical work—the education, motivations, and support that pharmacists provide to patients to enact behavioral change—will be the new foundational service.”

Robotic dispensing machinery is not cheap!   This is a classic example of where flexible and convenient equipment financing solutions can be very beneficial to the pharmacy owner.

3. Natural medicines

Quoting Medical Director again:

“the rise of patient demand for natural and alternative approaches to medicine means our healthcare system has become more agile to adapt and meet patient expectations. In fact, as early as 2000, the increased demand was recognised as something public health needed to take more seriously.”

This is most certainly a welcome trend in the medical and health-care industry.  There is now so much eveidence-based information under-pinning the value of natural solutions informed by qualified practitioners such as nutritionist and naturopaths, but often the front-line staff work in the pharmacy!

It’s not unusual now to see naturopaths or other natural health practitioners either having full-time or sessional roles within the contemporary pharmacy setting, and the shelf space devoted to supplements is growing all the time.

IOt might be time to refurbish and create your pharmacy’s own dedicated natural health section, or consulting office?

4. Medical Cannabis regulation

“In 2018, we saw an increasing interest in the use of cannabis for medical purposes, with Governments at both Commonwealth and State and Territory levels in Australia implementing a raft of legislative and policy change to allow the cultivation, manufacture, prescribing and dispensing of medicinal cannabis products for patients in Australia.”

Medical Director

This places huge demands on pharmacy staff for training in this new field as well as a sound understanding of ethical, compliance  and other considerations.

Summary

The pharmacy industry is certainly undergoing more than its fair share of change currently!

For more information on these trends, please refer to our source articles:

Medical Director – 6 Predictions shaping the future of pharmacy in 2019 

https://www.medicaldirector.com/news/medicines-information/2018/12/6-predictions-shaping-the-future-of-pharmacy-in-2019

Drug Topics – The Future of Pharmacy Automation.

https://www.drugtopics.com/automation/future-pharmacy-automation

Why Aren't There More Millennials In Franchising?

When you think of the franchising industry Millennials probably aren’t the first thing that come to mind. Many of us would go straight to thoughts of Mum & Pop partnerships formed out of a desire for a flexible working lifestyle and a business they can call their own. However, the franchising model and Millennials have a lot to offer each other, and could just be the perfect partnership.
Whilst the most obvious reason to entice Millenials to get involved in the franchise industry is the fact that someone has to take over the hundreds of franchise businesses currently operated by franchisees approaching retirement, there are so many other reasons the industry could be a good fit for the countries youngest entrepreneurs. 

Employment opportunities for young people are few and far between, and as a result new businesses and start-ups are popping up everywhere as Australia’s youth try to find their place in the workforce. It is well known that Millennials have taken a different approach to employment than the generations that came before them, and one of the major differences is the importance placed upon work-life balance. Striving the find a lifestyle that allows flexibility and versatility whilst also providing a level of stability and independence, Millennials may just find that franchising is the right fit for them, so why are there so few in the industry?

The reason is a combination of two things, the first being that many franchise brands have failed to realise the benefits of bringing Millennials into their business, and the second being that those who have, aren’t quite nailing the marketing.

Slowly but surely young entrepreneurs are starting to invest in franchise businesses, however the uptake has been slower than the generations that came before them, partly due to a lack of interest from franchisors recruitment teams. Many franchisors see Millennials as a risk, widely known for their short career tenure as they search to find a role that gives them purpose. The media shines these attributes in a negative light, however in an ever-competitive business landscape, drive and ambition to succeed could bring new life into plateaued franchise brands.

Another important consideration for the long-term success of a franchise brand is its ability to adapt and grow. Bringing younger franchise partners on board can help businesses achieve exactly that. Technological innovations continue to play a major role in almost every industry across the globe and franchising is no exclusion. It is vital that brands are able to navigate their way through the changes brought on by such innovations, and who better to guide a brand through this new landscape than the generation that fueled the change. Millennials are the first generation who could be considered digital natives, and the skills they bring with them in the space are an invaluable contribution to a sustainable business model for the future.

So, why are franchise brands that see the benefits of Millennial franchisees struggling to get them to invest? Many may think a lack of savings, or an inability to get a loan may be a major barrier. However, many Millennials are struggling to find a franchise brand that connects with them, and it’s not because they aren’t out there. Franchisors simply don’t know how to market to Millennials.

Read the entire article here:  Why Aren't There More Millennials In Franchising?