Over six months have passed since the implementation of sixty-day dispensing (60 DD). In a recent LinkedIn video, John noted that he now has over six months of post-policy data for pharmacy valuations. He mentioned that the impact hasn't been as significant as initially anticipated, emphasising that it's still early days and the pharmacy landscape is ever evolving.
This has prompted me to stress the importance of monitoring your pharmacy's performance during this transition using key performance indicators (KPIs). Last August, I wrote an article discussing KPIs and what you should monitor going forward. I believe today is an opportune moment to gently remind you to track and analyse your data closely.
What are KPIs?
Key Performance Indicators (KPIs) are a type of metric system used to measure your progress and key targets to determine the success of your business. It demonstrates the performance at a particular period which can be used to make changes or continue with strategies that will help produce a positive result for the next period.
Can I do anything before I begin to set and monitor KPIs?
To ready yourself, consider a couple of steps. Firstly, revisit your data from the previous 12 months before the implementation of 60 DD. This review will help you understand your historical performance and current performance. Knowing your business performance prior to the policy is great to determine if 60 DD has affected your pharmacy and by how much.
This paragraph below from the previous article is worth mentioning:
The other things you can do is review the StrongRoom or NostraData reports that are available to review estimated impacts. Use these reports to facilitate discussions between your business partners and your team. You can start brainstorming and putting in place strategies. I understand some owners might feel this is pointless as we don’t have a crystal ball to tell us what the future will bring however, you can control the processes which you do have control over. Bringing awareness is a starting point and if you feel the need to create strategies to prepare your pharmacy, go ahead and do this.
Now, that we’re in the future, compare what the estimated impacts versus your current data. You will have a blueprint of how much 60 DD has impacted your business so far.
Which KPIs should I continue to use to measure the impact of 60 Day Dispensing?
I would still recommend reviewing and monitoring these KPI’s to see how the 60 DD is impacting your bottom line.
When and how often should I review KPIs?
When monitoring these KPIs, the comparison should be reviewed monthly as follows:
- Comparing the difference between this month V last month
- Comparing the difference between this month V same month last year
- Comparing the difference between this month V budgeted figures (if you have prepared one)
Quarterly and annual reviews can also be reviewed but monthly monitoring is still better at this stage to keep a close eye for the 60 DD impact so you can pivot and make changes to your pharmacy.
What should I do with the data?
The data will be able to show you trends that are happening within your pharmacy business. Some follow up call to action items that can be done:
- Ensure your data makes sense so you make implement good strategies.
- Sharing current performance with your partners, mentors, and/or team.
- Discuss and brainstorm ideas and use this to form new strategies for the business.
- Regular monitoring allows you to capture change faster to ensure you don’t fall backwards.
A lot of pharmacy owners have not let 60 DD steer their course. Many pharmacy owners I have spoken to or read about on LinkedIn have taken this obstacle and used it as an opportunity to make some changes to have better business operations, innovate themselves and most importantly have put strategies in place with a focus on improving patient healthcare in the community. This is what the power of data can do to help you get there.
Each one of you are resilient and here at Peak, we will be there to ride this crazy rollercoaster with you and know you are not alone. If you want to discuss KPIs or find ways we can help you with the 60 DD impact, please get in touch with us.