For more than 25 years, Pharmacy Select has helped independent pharmacies stay competitive by delivering access to high-quality, cost-effective generics through a trusted, streamlined purchasing model. What started as a way to strengthen buying power has evolved into a strategic margin tool, giving pharmacies the ability to control acquisition costs while keeping purchases aligned with their primary wholesaler. Today, as reimbursement pressure continues to tighten, that long-standing foundation is more valuable than ever and for pharmacy owners like Michael Andes, owner of Andes Health Mart Pharmacy in Effingham, IL, it’s become an essential part of running a profitable, sustainable business.
As an IPC MVP Award winner, Andes runs a disciplined, detail-oriented operation. But even at that level, he saw something that didn’t sit right: too many generic purchases were eating into profitability. That changed when he started taking a closer look at Pharmacy Select.
The Turning Point: “We Realized There Was Significant Savings”
Like many pharmacies, Andes first learned about Pharmacy Select through his Regional Director. But it wasn’t until he began actively comparing prices that the impact became clear.
“When we started looking at our purchases versus Pharmacy Select,” he explained, “we realized there’s huge savings to be had.”
That realization didn’t require a full overhaul of operations, just a shift in attention.
Instead of accepting default purchasing, Andes and his team began taking a closer look at their highest-cost items, using the McKesson ordering portal to compare alternatives under the Pharmacy Select (RTL2) contract.
What they found was immediate, and hard to ignore.
Real Savings, Real Impact
The savings Andes has seen aren’t incremental, they’re meaningful enough to directly influence profitability.
- Some products come in 70–80% cheaper than traditional purchasing options.
- Others still deliver 20–30% savings, depending on the item.
And in certain cases, the difference is dramatic.
One example he pointed to:
- A generic Victoza equivalent (liraglutide) priced through the leading generic could run $300–$400
- The Pharmacy Select option brought that down to $120–$180
“That’s about a $300 difference,” Andes noted.
In another example:
- Levothyroxine prices dropped from roughly $100 per 1,000 count to about $20
In both cases, the impact goes beyond cost savings, it fundamentally changes how those prescriptions perform financially.
From Losing to Making Money on the Same Prescription
The real story isn’t just about buying cheaper generics. It’s about what those savings do to your bottom line. Before incorporating Pharmacy Select, Andes would regularly see prescriptions where reimbursement didn’t cover acquisition cost.
“We’ll look at a claim and think, ‘we’re going to lose $50,’” he said.
But with Pharmacy Select:
- That same claim might turn into a $10 to $20 profit.
- In some cases, what looked like a $100 loss becomes a $100 gain.
That shift: from negative to positive margin, is where Pharmacy Select delivers its real value.
“It actually makes it profitable for a lot of these claims instead of losing money,” Andes said.
A Simple System That Works
What makes Andes’s approach especially powerful is how simple it is. He doesn’t rely on complicated reporting or major operational changes. Instead, he builds a small, repeatable habit into the daily workflow.
At the end of each day:
- Spend 5–10 minutes reviewing high-cost items.
- Click into generic equivalents within McKesson.
- Sort by price to quickly identify Pharmacy Select products.
“That extra five or ten minutes can save hundreds of dollars,” he said.
There’s also one key operational detail he emphasizes:
- Always mark Pharmacy Select items as “do not substitute.”
Otherwise, the system may default back to a higher-cost product.
It’s a small step, but one that protects the savings.
Call your IPC Regional Director for more tips.
Strategic Value Beyond Price
While the price advantage is clear, Andes also points to a bigger strategic benefit: keeping purchases inside the McKesson ecosystem.
Today:
- Roughly 10–20% of his generic purchases flow through Pharmacy Select.
Those purchases help him maintain a ~95% generic compliance rate and support consistent GCR performance and rebate eligibility.
“It helps us stay on track,” he said. “We don’t have to go outside to find better pricing.”
That matters because every purchase kept in-network strengthens overall contract performance, without sacrificing margin.
Call your IPC Regional Director for more details to ensure you are purchasing the lowest cost item and receiving “credit” towards your purchase volume requirements, GCR, and other compliance metrics.
A Program That Keeps Getting Better
Another key advantage Andes has seen over time is the growth of available products. By regularly reviewing IPC’s weekly updates and watching newly added items, his team continues to expand how they use Pharmacy Select.
“It’ll show the new ones added, and we’ll look and say, ‘we use a lot of that product,’” he explained.
That ongoing expansion means the opportunity isn’t static, it continues to grow as more generics are added to the program each week.
In addition to Generics, Pharmacy Select offers discounted Brands, Vaccines, OTC including Diabetic supplies, and more.
The Bottom Line
For Andes, Pharmacy Select isn’t a separate purchasing strategy; it’s a daily discipline that strengthens every part of his operation.
- It reduces acquisition costs.
- It improves margins on individual prescriptions.
- It supports GCR and rebate performance.
- It keeps purchasing centralized within McKesson.
But most importantly, it’s practical.
“You just have to spend five or ten minutes a day,” he said. “And it can save hundreds.”
What This Means for Your Pharmacy
The takeaway isn’t that you need to overhaul your workflow. It’s that the margin opportunities are already there, you just have to look for them.
Pharmacies that treat purchasing as a passive task often miss what Andes has uncovered:
Small, consistent decisions at the point of order can have a meaningful impact on profitability; and as his experience shows, Pharmacy Select makes those decisions easier; and more valuable, every single day. Checkout Pharmacy Select for yourself and see how much you can save.
As Pharmacy Select looks ahead to the next 25 years, stories like Michael Andes’ demonstrate exactly where its value continues to grow. What began as a purchasing advantage has evolved into a critical profitability tool, one that helps pharmacies adapt in real time to mounting reimbursement pressure and rising costs. As the program continues to expand its product offerings and deepen its integration within everyday workflows, the opportunity is only increasing: more savings, stronger margins, and greater control for independent pharmacies committed to staying competitive. For those willing to make it part of their daily routine, Pharmacy Select isn’t just a legacy program, it’s a forward-looking strategy for the future of independent pharmacy.
