Independent community pharmacies are under more pressure than ever, yet your patients still expect you to show up with answers, empathy, and access to affordable medications. The Pharmacy Select (RTL2) backup contract program is built to help you do exactly that; by strengthening your margins, simplifying purchasing, and reinforcing the long-term viability of your business.
25 years of backup strength, built for independents
Launched in 2001, Pharmacy Select has grown into one of the industry’s most comprehensive backup purchasing program, now serving more than 6,000 community pharmacies nationwide.
- The program gives you access to over 11,000 products, Generic Rx, Branded Rx, Vaccines, Diabetic Supplies and OTC’s through your ordering portal.
- These contracted items are negotiated directly with more than 150 manufacturers and vendors, delivering competitive prices that support your bottom line.
- All of this is positioned as a “backup” to your prime vendor Source contract, complementing rather than replacing your primary agreement.
For an owner thinking about the next decade; whether you are growing, sustaining, or planning a transition, this kind of stability and depth can be the difference between just surviving and confidently investing in your future.
Why Pharmacy Select is a powerful opportunity
Community pharmacies often operate with drug costs representing about 80% of revenue, according to the 2024 NCPA Digest. That means even modest improvements in generic purchasing can translate into meaningful dollars that you can reinvest in staff, services, technology, or simply your own quality of life.
Pharmacy Select is designed to impact this exact pressure point:
- It gives you a structured, reliable way to reduce acquisition costs on thousands of generic items you already buy.
- It helps you enhance your Generic Compliance Rate (GCR), because Pharmacy Select purchases flow through McKesson Connect and count toward your generic performance with your primary wholesaler.
- It supports your ability to offer affordable, accessible medications across all categories of your business to your community, even as reimbursement pressures mount.
When you combine better acquisition costs with a stronger GCR performance, you’re not just cutting spend in one area; you’re improving the financial health of your entire purchasing strategy and positively impacting your business.
Real world savings: what the numbers look like
IPC has analyzed independent pharmacies using Pharmacy Select and found that members who actively leverage the program save, on average, about 8% on their entire generic spend. For a typical single store operator doing roughly 4 million dollars in annual revenue, this equates to approximately 50,000 dollars in annual savings.
Seamless access: no extra platforms, no extra friction
One of the reasons independent owners are skeptical of “savings programs” is the hidden complexity: extra portals, separate invoices, additional deliveries received, unfamiliar workflows, and staff training that never seems to end. Pharmacy Select is intentionally designed to avoid those pitfalls.
- Under your McKesson ordering portal, Pharmacy Select items appear directly inside McKesson Connect, clearly flagged as RTL2.
- Products are ordered the same way you place your existing orders; there is no need to log into an additional platform or manage a different ordering process.
- The program is already included in your McKesson supply agreement and available within the portal. There is no separate enrollment process or signup barrier.
Example: Your purchaser is building the nightly order in McKesson Connect and sees a commonly used generic where the RTL2 Pharmacy Select option is priced more favorably than your standard line item. Choosing the RTL2 item not only lowers acquisition cost on that order; it also supports your GCR goals because the purchase still flows through your primary wholesaler. Over hundreds of line items per week, that kind of choice adds up quickly.
How IPC’s cooperative model amplifies the value
Pharmacy Select exists within a broader ecosystem of support from IPC, a member owned cooperative focused exclusively on the needs of independent pharmacies. That matters for several reasons:
- IPC is led by independent owners; its board consists entirely of pharmacists who have experienced the same pressures you’re facing.
- As a cooperative, IPC returns profits and rebates to its members, helping you capture more of the value created by programs like Pharmacy Select.
- IPC pairs purchasing solutions with advocacy, compliance tools, and access to discounts and specials from more than 30 additional vendors.
When Pharmacy Select negotiates competitive pricing with manufacturers and vendors, the benefit is designed to flow back to you, not a distant shareholder. That alignment of incentives is a key reason the program has sustained and grown over 25 years.
Designed for owners at every stage
Whether you are a new owner with one store, a multi‑site operator, or a pharmacist planning for retirement and legacy, Pharmacy Select aligns with your priorities in different ways.
- Single store and early-stage owners can use the program to create breathing room in their financials, giving them the confidence and cash flow to hire, market, and invest in new services.
- Multistore owners can leverage the scale of consistent backup contracting across locations, creating standardized purchasing strategies and more predictable margins.
- Owners nearing retirement can strengthen their financials and make their business more attractive to buyers by showing stable, optimized purchasing and healthy generic margins.
In all cases, the program reinforces what you care about most: keeping your doors open, your staff employed, and your community cared for.
What to do next
The most effective next step is a straightforward one: connect with IPC member performance about how Pharmacy Select fits your specific purchasing pattern and goals. Because every independent is unique; payer mix, specialty focus, volume, and local competition, the best way to understand your opportunity is to look at your numbers in context.
As you consider that conversation, some practical questions to explore include:
- What is your current annual generic spend, and what would an 8% reduction mean in absolute dollars?
- How effectively are you using RTL2 items in McKesson Connect today, and where are the biggest gaps or missed opportunities?
- How could an additional $30,000 – $50,000 dollars per year in savings support your staffing, technology, or clinical service plans?
The independent pharmacy sector is an indispensable part of the U.S. healthcare system, and programs like Pharmacy Select exist to keep it that way. By aligning competitive backup contracting, seamless access, and cooperative driven value, Pharmacy Select offers a concrete, proven way to strengthen your business while you focus on strengthening your community.
As an IPC member, you can reach out to IPC Member Performance at [email protected] for additional questions, one-on-one support, and help developing a purchasing strategy that best fits your pharmacy’s needs and long term goals.
If you are not a member and would like additional information about IPC, visit our website for more information.
