WHERE TO PUT IT?
One of the most consequential decisions when opening an employee pharmacy.
INTRO TO CLIENT
Chesapeake Public Schools (CPS) is a school district in southeastern Virginia with 45 schools and three learning centers. With an enrollment of over 40,000 students served by more than 5,700 teachers, administration and support staff.
One-hundred percent of their schools are Purple Star certified, demonstrating their commitment to serving families of those serving in our military. They have a specific strategy to provide best in class compensation, benefits, recognition and total rewards.
After an extensive RFP process conducted in the 2nd and 3rd quarters of 2012, the administration had selected On-Site Rx to provide on-site pharmacy services in October of that year. Feasibility calculations conducted during the proposal determined that forty percent (40%) utilization within year one and 70% utilization after year 2 would help the client achieve a full return on investment by year 2. Through the process, we determined CPS could best be served by two separate pharmacies strategically located in the area their members lived and worked.
LOCATION CONSIDERATIONS
Traffic Patterns
+ Interstates
+ Draw bridges and waterways
+ Congestion areas
Other Considerations
+ High utilizing pharmacies
+ Existing clinic or wellness services
+ Proximity to Hospital
Shopping and Lifestyle Patterns
+ Grocery and Other Shopping
+ Dining Options
+ Convenience to Prominent Medical Practices
Available Space
+ In existence – owned by client
+ Available to rent/buy
+ 900-1200 sq ft
Because location discussions had taken place throughout the selection process, the client was able to secure the first of two locations within a couple weeks of the contract being signed. A second location was secured within four weeks of the first, and upfitting and licensure began.
This first step is crucial in identifying the address that the ultimate pharmacy license will be attached to.
Additionally, the condition of the location determines the “upfitting” necessary to bring the pharmacy up to the condition necessary to be licensed, including:
UPFITTING CONSIDERATIONS
Parking
+ Capacity during rush
+ ADA compliance
+ Clean and Safe
Utilities
+ Water - Hot/Cold, bathroom capacity
+ Phone, Internet, Power and Light
+ General determination of upfitting required
Security
+ Activity and lighting throughout business hours
+ Secure windows and entrances
+ Consider balance of discretion and promotion in signage
SUMMARY / RESULTS
CPS was able to achieve seventy percent (70%) utilization within four (4) months of opening. On-Site Rx was able to guide the client through the myriad considerations to identify a space that would allow them the the success necessary to achieve a full return of investment (ROI) within the first year of operations.
