| Backgrounder Nov 27 2007 |
|
November 27, 2007 Backgrounder
Independent Pharmacists Association of Ontario (IPO) -- The Independent Pharmacists Association of Ontario (IPO) is a non-profit association of professional pharmacists who own their own Ontario pharmacy businesses. The IPO’s Board of Directors is representational of their membership in its mature, professional and ethnically diverse group of pharmacy business owners. The IPO was formed in 2006 as a direct result of the passing of the Transparent Drug System for Patients Act, Bill 102. It was recognized that the unique needs of independent pharmacists in Ontario required a separate voice from other large pharmacies and pharmacy chains. One of the goals in forming a new association is to inform legislators with the hope that they will understand and act to mitigate the direct impact of Bill 102 on the operations of independent pharmacists throughout the Province. In February 2007, 312 pharmacists attended the IPO meeting recognizing the urgent need for independents to be heard. The membership discussed what needs to be done to ensure that Ontario residents retain their access to prescription medicine in smaller pharmacies located in both urban and rural communities throughout the province. At a November 18, 2007 meeting, pharmacists urged the IPO leadership to initiate a dialogue with Ontario Government politicians and Ministry of Health officials to review and revise the new laws and regulations introduced by Bill 102 with consideration for the small business owners / professional pharmacists of IPO. In less than 2 years, the IPO has over 850 member pharmacists representing over 600 pharmacies throughout Ontario -- and the membership is growing steadily.
-- Pharmacists are the Cornerstones of Local Medical Service Delivery -- Pharmacists are front-line Healthcare Professionals and almost one in two pharmacists in Ontario (46%) is independent. As a group, these small business owners are significant. More importantly, however, is the fact that independent pharmacies have a substantial economic and social impact in the communities they serve. They employ people and bring tax revenue and spending dollars in to the community. They act as partners in providing health care services to the people, often in tandem with local doctors and seniors’ residences. Typically, independent pharmacies are located in health buildings, walk-in clinics or in strip malls near health services. Many independents are one or two person shops located within or near medical clinics and doctors’ offices where they offer reliable and convenient access to their customers. Their stores focus on the dispensary side of health care services with a bare minimum décor and few displays. A typical independent pharmacy will handle 15,000 – 20,000 prescriptions each year for at a total cost of about $1 million.
-- The IPO is made up of Small, Unique and Personal Businesses -- An Independent Pharmacy’s Business Focuses on its Dispensary - Most independent pharmacists generate 90% of sales and revenue from dispensary/pharmacy services. This differs from chain stores who report only 20% of their revenue in this area (approximately 80% of their sales come from front-store items). As Independents, the focus is on the prescription part of the business and do not sell other health and beauty products, front shop items or food and dairy products. The result is that Independent Pharmacists know their customers by name and they know their health issues. They have different challenges than larger chain pharmacies because they don’t have the buying power that corporate chains have, nor do IPOs have the same resources available to operate their stores or are they able to offer “loss leader products” to bring in new customers. Independent Pharmacists have Strong Personal Relationships with Customers - They have strong personal relationships with their customers. People in the community consider Independent Pharmacies to be “their store”, the pharmacist to be “their pharmacist.” Customers tell IPOs that they find them easier to deal with because they are more accessible; the pharmacist knows them and their family members by name and is familiar with their medical history. They become part of their customer’s health care team, as their dentist and family doctor. Independent Pharmacists Pride Themselves in their Personal Service - Independent pharmacists are front line health providers. They are passionate about their profession and see the business as a necessary element of their operation. They work 12+ hour days and view their operations as ‘their lives’. They go above and beyond to provide personal service to their customers (home delivery, compliance packaging, counseling services, and payment facilities, etc.).
For further information, Visit www.ipoassociation.com |