Monday, September 24, 2012


When my classmate Victor and I decided it was time to open our own retail Pharmacy, we had a number of major decisions to make. The first and foremost was where: location, location! Then did we have something different to offer? And of course, did we have sufficient funds to make it all work?  We were very fortunate, thank “goodness”.  Today the same problems must be dealt with, same as Vic and I did in the 1950s.

However, these days our profession is controlled by different legislations. The biggest difficulty to overcome is the competitive bidding yoke around our necks! When we opened our pharmacy in those days our future depended on a marketing pricing program! Yes, that is what it was but not called that in the 1950s. Today MPP has now become one of the important programs, if not the most critical, which must be understood by DME/HME providers.

Your company, operated by an entrepreneur, must be able to control your marketplace. The prices you charge for the services and products you offer have to be competitive. A major part of being competitive is that customer recognizes the services that come with the supplies! Fee for merchandise that a DME/HME charges will reflect that! Service has always been an integral part of pricing.

Market pricing has always been a key to success especially when it is in place of a “bid” for lowest prices. That is when the customers will invariably be the big winners. I can best explain this; I live in a very nice community. There are several independent DME/HME dealers and there are two hospital chains that all offer the same. The pharmacies compete with the chain stores.  But an MPP program offers each of them the same chance!

My wife and I go to an independent pharmacy, which also has a DME location. They are now in a strip mall. Each segment operates in one-half of the large showroom.  Every customer is greeted, usually by name when they enter. Both the pharmacy staff and the DME personnel are always readily available.  

At Medrade in Atlanta there will be much discussion about this topic (MPP) and it is vital that you attend as many of the classes being offered as possible. The future of your company and our industry depends on what you do. Medtrade Atlanta is a one-time opportunity that must not be missed. Every one of us has to join forces with one another. Both the state and national associations must work diligently to see that MPP, the marketing pricing program becomes a reality and the competitive bidding sitting on our shoulders disappears! Be there!

Support AA Homecare in their efforts to have MPP seriously considered by congress:  Click here to learn how to help!

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