Kerr hosts senator in push for MTM
RALEIGH, N.C. —Kerr Drug hosted U.S. Sen. Kay Hagan Aug. 16 for a pharmacy and health center tour that drew praise from the North Carolina Democrat and a new push for medication therapy management.
Hagan toured the patient care area of a Kerr drug store in the 90-store chain’s home market, and used the opportunity to talk with patients and pharmacists about the value of pharmacy-based clinical care. The lawmaker, a co-sponsor of the Medication Therapy Management Expanded Benefits Act of 2010, S.3543, lauded the contributions made by pharmacists in improving patient care and controlling health costs. She also promoted the expansion of MTM services to Medicare Part D recipients and worked to include an MTM provision in the new healthcare-reform bill, creating a grant program to promote MTM services.
“Pharmacy is evolving to a more patient-centered focus as patients and providers realize the value of pharmacy in improving health care,” said Kerr chairman and CEO Tony Civello. “We know that for every $1 invested in MTM, overall healthcare costs are reduced by $8 or more. Sen. Hagan understands that value.”
GNC to sell branded retail, food-service equipment
LOS ANGELES General Nutrition Centers has inked a deal to sell its retail and food-service equipment with the help of IMG Licensing and The Legacy Cos.
IMG’s licensing agreement for GNC with The Legacy Cos. will give way to the creation of GNC-branded products, such as blenders and juicers, which will be distributed in the company’s stores. The products will retail from $150 to $400, IMG said.
The agreement will run through 2015.
“GNC has set the standard as an industry leader in the nutritional supplement business and is truly dedicated to helping its customers improve health and quality of life. Teaming up with The Legacy Cos. to expand its brand and create this new and exciting product line will continue to solidify GNC’s brand and its commitment to providing exceptional products and services to consumers,” said Tim Rothwell, IMG EVP and co-managing director of worldwide licensing.
Added GNC EVP Tom Dowd, “GNC is very excited to partner with a high-quality manufacturer that can produce a variety of products that complement the healthy lifestyle of our customers.”
Drug stores’ success relies on customer service
WHAT IT MEANS AND WHY IT’S IMPORTANT In the never-ending battle for customer loyalty, independents rule and service is still king.
(THE NEWS: J.D. Power and Associates’ pharmacy study addresses cost, customer service. For the full story, click here)
The latest national customer satisfaction survey from J.D. Power and Associates showed that personalized, above-and-beyond service still outweighs price for a majority of consumers — even in a dour economy beset by economic uncertainty and joblessness. A majority of the more than 12,300 pharmacy customers polled by the big research firm in May and June of this year gave their highest satisfaction scores to pharmacists that took more time to answer their questions, help them find over-the-counter medicines and, perhaps, even remembered their names and family situations.
This, despite the growing cost sensitivity among Americans about the prices of their medicines and the out-of-pocket expenses they incurred at the pharmacy counter. As Jim Dougherty, J.D. Power’s director of the healthcare practice, put it in a conference call to discuss the survey results, “Pharmacies that are focused on service garner the highest levels of satisfaction … even in an environment where cost has become increasingly important.”
That’s good news for small-scale, owner-operated independent pharmacies. It’s also good news for the Big Three drug wholesale giants that operate the major networks of independents, franchised and otherwise, that scored the top results.
Again this year, survey respondents ranked independents tops in overall satisfaction. Customers gave their highest scores to Good Neighbor Pharmacy, the huge network of some 3,700 independents that operate under the buying, merchandising and store-support umbrella provided by distribution and health services giant AmerisourceBergen. The two largest groups of independent-owned franchises, McKesson’s Health Mart and Cardinal Health’s Medicine Shoppe Pharmacy, ranked second and third, respectively, in the poll.
Among mass merchants, Target’s pharmacy operation got highest satisfcation marks for the fourth year in a row, while Publix rated tops among supermarket pharmacies.
Efforts to give the best possible service pay off, both in additional revenues and in measurable customer loyalty. Highly satisfied customers can bring in an additional $227 each year in prescription business, researchers found. What’s more, J.D. Power reported, “brick-and-mortar pharmacy customers who are highly satisfied … are more than three times more likely to say they ‘definitely will’ return to their pharmacy and 10 times more likely to say they ‘definitely will’ recommend their pharmacy to others, compared to customers with low satisfaction levels.”
That’s a lot of free word-of-mouth advertising.