7 Steps to Strengthen Your Profitability

Pharmacy has not been immune to the labor shortages that have plagued the U.S. since the Covid-19 pandemic took hold in 2020. As staff has dwindled, many pharmacists have had to fill the labor gap by spending more hours filling Rx scripts, time that could have been otherwise spent adding or expanding clinical services.

Independent pharmacies can help alleviate staff shortages by taking a strategic approach to labor analysis and workflow optimization. Start by calculating total staff costs; including wages, benefits, overtime, and technician utilization, then evaluate how pharmacists spend their time each day. Here are two worksheets to help you better understand your staffing costs and optimize workflows. Your team is your growth engine; make sure they are just as engaged in your growth as you are.

Underwater reimbursements are an unavoidable reality for pharmacies, but they do not have to define your profitability. While we can’t eliminate them entirely, you can take decisive action to mitigate their impact. Adding profitable clinical services is one of the most effective ways you can offset underwater reimbursements and reduce reliance on shrinking dispensing margins. While you may already be providing services like vaccinations and point-of care testing, services such as pharmacogenomic (PGx) testing create new revenue opportunities while strengthening the pharmacy’s role in personalized patient care.

By leveraging solutions like ClarityX, pharmacies can identify medication therapy risks, support prescribers with actionable insights, and improve patient outcomes through optimized medication management. These high-value clinical offerings not only generate additional reimbursement opportunities but also help position the pharmacy as an essential healthcare destination within the community. Adding ClarityX (PGx) testing is a practical way to boost cash flow and reduce financial strain.

Become familiar with your pharmacy management system’s ability to improve your turns. Many systems have inventory management built into them or work with add-on services to integrate this feature.

It’s a simple equation, really. Inventory Management = Cash Flow Management.

The correct amount of inventory you should carry can be measured by 15 inventory turns a year. If your turns are less than 12, you’re carrying too much inventory. It’s hard to pay your wholesaler bill when your cash is tied up on your shelf. This decreases your cash flow which prevents you from buying the products you need, resulting in a higher out-of-stock script volume.

It’s a delicate balance. The key is to find that ‘sweet spot’ where you don’t carry more inventory than is necessary. Less inventory equals cash in the bank. Take 15 minutes to determine your current out-of-stock and short-fill percentage.

Use Just-in-Time MedSync to Protect Cash Flow

One of the fastest ways pharmacies unintentionally create inventory problems is by tying up cash in high-cost medications that sit on the shelf. Just‑in‑Time (JIT) Medication Synchronization flips that model. Instead of carrying excess safety stock, JIT MedSync aligns ordering with confirmed patient pickup dates, so inventory arrives as close as possible to when it’s dispensed. The result is fewer out‑of‑stocks and stronger liquidity.

This approach is especially critical for high‑dollar brand medications, where pharmacies are often floating acquisition costs while waiting for reimbursement or manufacturer refunds. By confirming patient need in advance, adjudicating claims before ordering, and leveraging next‑day fulfillment through the IPC Warehouse, pharmacies dramatically shorten the window where cash is tied up in inventory. You carry what you need, when you need it, nothing more.

IPC’s Just‑in‑Time MedSync guide walks through how to operationalize this model with your team, including staff workflows, ordering guardrails, and cashflow safeguards designed specifically for today’s reimbursement environment. When paired with the IPC’s warehouse’s, next‑day delivery capabilities, JIT MedSync becomes a practical system for reducing inventory risk while keeping patients; and cash, moving on schedule.

We know how busy you are. Chances are it feels like you’re being pulled in a thousand different directions every day. It’s human nature to then scramble to solve problems without a grounded plan or approach. We hear about this frustration a lot when it comes to purchasing. Bouncing from website to website to find the very best deal.

You might find a short-term deal at the expense of losing thousands of dollars in rebates by not staying compliant with your primary wholesaler. You don’t have time to learn the nuances of your primary wholesaler contract to fully maximize it.

To keep your cost of inventory at a minimum, it is critically important to satisfy your generic compliance ratio (GCR) set forth in your primary wholesaler agreement. The rebates you earn by hitting your target GCR every month can be game-changing, putting cash back in your pharmacy.

Many pharmacy owners tell us that their number one challenge is to reduce the costs, specifically the cost of goods. At IPC, our goal is to help you enhance your profitability and help you create a purchasing strategy that can directly impact your bottom line in a positive way.

Your independent pharmacy is evolving into a modern healthcare access point, and digital services are an essential part of that transformation. IPC has partnered with innovative technologies to help connect patients to care, prescription savings and delivery keeping you at the center of care.