Strategies for Success in the Face of DIR Fees
Direct and Indirect Remuneration (DIR) fees are a big topic of conversation among independent pharmacists today. A recent article published by Pharmacy Owners offers a great overview of what DIR fees are, why they’re an issue, and what independent pharmacists can do in the face of this growing problem.
The author defines DIR fees as “fees paid back to the PBM (pharmacy benefit manager) after the point of sale transaction or time of adjudication.” DIR fees are a source of frustration for pharmacists because they vary greatly, they’re hard to identify and associate with a particular claim, and each year they grow larger.
In order to build a successful business in spite of the damages of DIR fees, the author suggests that independent pharmacists should aim their focus on the following areas:
- People – Focus on establishing a positive company culture and on hiring and retaining good employees.
- Profits – Think quality over quantity. Identify which prescriptions make the most money and seek to fill more of them. Also pay attention to where you’re losing money, and avoid those prescriptions.
- Process – Perform an audit of your business to discover areas where you could improve. Don’t be afraid to make changes—just because something has worked well in the past doesn’t mean it’s still a good idea today.
- Performance – Drill down into the business data available to you. Understand it, set your goals according to it, and use it to inform your decisions.
Read the article in full at Pharmacy Owners.