Q&A: Mark Walchirk on positioning independents for success

As McKesson ideaShare 2015 was just getting underway, DSN editor-in-chief Rob Eder caught up with McKesson president of U.S. Pharmaceutical Mark Walchirk about the state of the pharmacy business, how smart independent pharmacy owners are finding new ways to compete and what McKesson is doing to help independent pharmacies become more broadly integrated into the patient care team, drive improved outcomes and improve profitability.



DSN: Talk about the challenges and the opportunities facing pharmacy today.



Mark Walchirk: I think there are some really positive things going on in the environment, and there are some challenging things as well. In terms of some of the positives, certainly the market in the United States remains strong; I think the demographics create an opportunity for continued growth in pharmaceuticals. There’s still a tremendous opportunity with generic drug launches over the next few years. The Affordable Care Act has brought more people into the healthcare system.



So there are a lot of positives for retail pharmacy, but at the same time, there are pressures as well. I think primarily, it’s an intensely competitive environment that retail pharmacy faces: obviously, there’s still a lot of pressure on reimbursement. If you asked 1,000 independent pharmacists what their biggest challenge was, probably the number one  thing most of them would say is something associated with reimbursement. So, they have had to learn how to continue to provide high quality care and clinical services, in an environment where they are getting squeezed from a reimbursement standpoint. It’s forced independent pharmacy owners to be more creative about their revenue streams, and really think about not just filling prescriptions, but really finding new ways to take care of patients and work within their communities. They have had to learn to compete in different ways than they have in the past.



DSN: Consolidation continues to be a factor in the pharmacy industry. How is consolidation impacting independent pharmacies and what do independent owners need to do to thrive in this new era?



Walchirk: It’s interesting because I think that consolidation can have both a positive and a negative impact on independent pharmacy. You may not hear a lot about it. But we have a lot of store owners who maybe started with one or two stores, and they continued to grow in their communities, then all of a sudden they have eight or 10 stores in a geographic area where they actually have some concentration and some brand recognition. In fact, that’s been one of their keys to success.  



I would say that independent pharmacy has been very resilient. About 10 years ago, there were about 20,000 independent pharmacies, and everybody thought the demise was going to happen. And 10 years later there are still about 20,000 independent pharmacies. So, it’s pretty amazing really, the resiliency of independent pharmacy owners. They have had to learn how to compete in a different way. They have had to learn to find ways to build scale in their own environments. You’ve seen a lot of young pharmacists open up their own stores. And I think there’s almost a rebirth of independent pharmacy that is taking place and will continue to take place.



DSN: How is McKesson helping retail pharmacies expand their role and become an even more integral and connected member of the patient care team?



Walchirk: I think that’s one of the unique reasons why independent pharmacy owners are successful because they really do act as part of the overall healthcare team within their communities. This afternoon in the Opening General Session we highlighted a number of pharmacies from around the country and we recognized our Pharmacy of the Year award winner from the Marble City Pharmacy in Sylacauga, Ala. You could just sense that they were really a part of the community, and they weren’t there just to fill prescriptions. They provide care and assistance in a variety of fashions, whether it is medication synchronization programs, consulting services with patients, diabetes or cholesterol testing, or developing an infusion center.I think independent pharmacy owners have had to find new ways to serve their communities, and a focus on patient care has been a critical part of their success. Typically independent pharmacy is known for that special emphasis on care, and I think in the environment that we are moving toward, where quality of care is linked to reimbursements, independent pharmacy is positioned very well to thrive in that environment. Independent pharmacy can be a great driver of adherence and persistence programs.



DSN: What is the No. 1 thing McKesson ideaShare attendees should do when they return to their pharmacies next week?



Walchirk: I would hope that every independent pharmacy owner takes home at least one new idea, one new program or one new initiative from their time here. McKesson ideaShare can be somewhat overwhelming — there are probably 1,000 big ideas out there — but if every one of the pharmacy owners here took one new thing back to their stores and implemented it, I think the show would be a great success.