News Archive
2004
13.12.04
HIP High Street Toowoomba Opens
On November 19 HIP officially opened its newest Queensland pharmacy – HIP High Street in Toowoomba, owned by Lucy Parker, Tom Khoo and Craig Finn.
About 60 people were there, including HIP CEO Ken Lee, to see the Federal Minister for Industry, Tourism and Resources (and local MP for Groom) The Hon Ian Macfarlane declare the new pharmacy ‘open for business’. Mr Macfarlane was keen to point out the value to the local community of the new Health Information Pharmacy with its strong focus on a high standard of care.
13.12.04
Why Operating In A Niche Market Is A Good Thing
Ken Lee – CEO of HIP – was recently asked to comment on the Priceline/API merger by one of the major pharmacy magazines.
This is what he had to say: “It’s a little bit early to tell what the impact of the takeover will be, but it should encourage current moves towards a greater focus on the retail side of pharmacy. I think it will drive people to Priceline pharmacies. It will take some time for consumers to become familiar with the Priceline model, but it will happen. On the other hand, it gives niche operators like us the opportunity to strengthen our professional position within the community.”
“Without being in a position to know, you’d think Priceline/API have now got a model that they can focus on, so it’s a possibility that one of their existing groups could be rationalised. I think those pharmacies without focused relationship-building campaigns in their marketing will be the ones that suffer – you really must have significant points of difference. We’ve got to be very definite about the unique selling propositions of each store and each individual group, instead of being a mix of messages.
The key is to find an effective combination of professional services and retail. One or the other can’t be relied on to work for your pharmacy, success must come from a combination of the two. A 60/40 dispensary/front-of-shop model is what most pharmacies should be aiming for, rather than the 70/30 or even worse model that predominates today.”
13.12.04
HIP Store Performance Report
As reported previously, provisional Support Office financial data on existing HIP pharmacies indicates that current members have seen an average projected increase in EBIT (Earnings Before Interest and Tax) since joining of more than 36%.
We are in the process of publishing a detailed report on HIP store performance which will be available to prospective members wishing to evaluate the HIP model (this report contains confidential company information and we require a Confidentiality Agreement to be signed before we send the report).
13.12.04
Member Profile – Sal Torrisi
In October this year Sal – with his business partner Simon Reinhard – opened the new HIP store in Narrabeen on the Northern Beaches in Sydney.
Sal registered as a pharmacist in 1995 and since then has worked in an incredible 70 different pharmacies in the Sydney metropolitan area – predominantly as a locum but also as pharmacist-in-charge and pharmacy manager.
Sal actively wanted to work in as many different pharmacies as possible – so that he could experience a wide range of pharmacy practice then pick the best systems to use when he finally bought his own pharmacy. However making that move from experienced pharmacist to pharmacy owner proved to be more difficult than he had imagined – a combination of the cost and the risk involved and a lack of knowledge of the business side of running a pharmacy is a barrier to many would-be first time owners – and Sal was no exception.
He first came across Health Information Pharmacy through his friend Lawrence Nguyen (HIP Member and owner of HIP Croydon Park). Sal says that watching his friend grow his pharmacy business was only a part of it – he also noticed how Lawrence grew personally and professionally and how he also seemed to have plenty of free time at the weekend! So earlier this year Sal made a point of finding out more about the group: he joined the new HIP Intropharm* program, putting him first in line to make an offer on the next pharmacy identified by HIP as suitable for a Member to acquire.
HIP identified a site in Narrabeen and put Sal in contact with Simon – another Accelerated Ownership Program member – and finally the deal was inked at the beginning of October and they took over the pharmacy that month. Sal told Pharmacy Advantage “Health Information Pharmacy is light years ahead of other pharmacy groups – it gives you a model to follow to establish a pharmacy business – a model which can be applied in other businesses as well – it also gives me an opportunity to grow both as a businessman and entrepreneur and as an individual.”
Sal plans to work hard to establish the pharmacy in Narrabeen and then use his experience and the HIP model to open a second pharmacy within 3 years.
13.12.04
A New Year Re-Solution
HIP wishes you a rewarding Christmas period – and some ‘quality time’ to enjoy yourself and those around you…
During this very busy end-of-year trading term it’s easy to miss out on the traditional opportunity to review your goals and achievements. Why not ‘bite the bullet’ and make this year one to seriously put your lifestyle and business into perspective by putting a genuine action plan into effect for 2005?
13.12.04
Comment - December 2004
The French have a saying “Plus ca change, plus c’est la meme chose” or “the more things change, the more they stay the same” – and when you think of how long the supermarket threat has been hanging over pharmacy you could be forgiven for thinking that this maxim applies.
The Howard government is back in power again and the status quo remains: Tony Abbott was quoted recently (Financial Review Nov 03) as saying “Roger Corbett and I have had several discussions and Roger has let me know in most engaging terms that he has not given up his ambitions. I have done my best to let him know he has to do better to persuade me.”
The Woolies CEO has certainly not given up – at a recent business lunch he reiterated his plan to open in-supermarket pharmacies, saying “I’m sure it will come back on the agenda next year. Australians pay far too much for pharmaceutical products.” Roger should not be too unhappy – Woolworths already dominates retail liquor supply and Woolies and Coles have carved up a very large slice of the petrol pie between them over the past few months. Last week an industry expert was quoting the two majors as having 14% of the fuel outlets – and a whopping 50% of the sales! Perhaps what is unlikely to change is Woolworth’s creeping domination of all retail sectors.
A recent seminar on the future of retailing held by the Pharmacy Practice Foundation highlighted a worrying complacency in community pharmacy in the face of continuing threats from deregulation, scheduling decisions and the as-yet unsigned Fourth Agreement. Everything points to more downward pressure on margins and - inevitably – those less viable pharmacies being forced to close.
There were some fairly damning comments at the seminar: “pharmacy is making money from the front-of-shop despite itself” “the majority of pharmacies live in a sea of mediocrity” – seemingly backed up by the findings of a recent Choice magazine survey concluding that consumers rarely get the right advice on medicines from pharmacies. Whether or not the conclusions are accurate, perception is everything. The major pharmacy groups – including the newly revamped API/Priceline – realise that change is needed and have all committed to major brand development over the next 6 months.
Where does this leave the independent operator? Some of course will continue to do well, but many will feel the heat. Health Information Pharmacy is prepared for these changes should they eventuate – see Ken Lee’s comments in “Why Operating In A Niche Market Is A Good Thing”.
22.10.04
HIP Narrabeen Opens
We're pleased to announce that two of our members – Simon Reinhard and Sal Torrisi – moved into their first pharmacy in Narrabeen on Sydney’s Northern Beaches recently.
Both Simon and Sal came to us independently in recent months very interested in the HIP concept but without a pharmacy to implement it in. We have been working with them over the past few months to identify a suitable outlet and have helped them through the entire process which all came to fruition on 7 October.
22.10.04
HIP Introduces Program to Help Pharmacists Become Owners
Simon and Sal at HIP Narrabeen (see above) were the first members of our pilot Accelerated Ownership Program – a program specifically designed to help pharmacists get into their first pharmacy and subsequent multiple sites.
We have often been approached by pharmacists wanting to own or expand but our advice has always been ‘come back to us when you have a pharmacy’. With the Accelerated Ownership Program in place we are now able to help prospective members source a pharmacy and help them avoid the pitfalls along the way – assistance is given in finding and negotiating the purchase as well as on the finance side (HIP introduces prospective buyers and sellers from within the HIP network – they do not act as brokers or agents – please speak to HIP for more details)
22.10.04
HIP Announces Future Plans at Spring Conference
HIP founder and Managing Director Ken Lee announced a number of new projects to our members from around the country at the HIP Spring Conference at Star City, Sydney last month.
Among these were • the launch of the HIP internet pharmacy model • a pilot project to enhance back-end financial reporting enabling Members to flag specific issues eg gross profit margin, reporting of exceptions, shrinkage, individual sales,, etc • property investment strategies for Members • an alternative pharmacy acquisition finance model • the launch of the HIP charity program
22.10.04
HIP Members Experience Strong Growth in 2004
Provisional support office financial data on existing HIP pharmacies indicates that current members have seen an average projected increase in EBIT (Earnings Before Interest and Tax) since joining of more than 36%.
22.10.04
HIP Welcomes Martin Challenor as Recruitment Manager in Victoria
Martin has recently joined the HIP team as Recruitment Manager in Victoria where he will be the first point of contact for pharmacists in that state who are interested in joining the group… or selling their pharmacy via the HIP network. Martin can be contacted on 0418 516538.
16.08.04
State Premier opens first Health Information Pharmacy in Western Australia
On Friday 30 July Dr Geoff Gallup opened WA’s first Health Information Pharmacy in Bentley, a suburb of Perth.
HIP Bentley – owned by pharmacist Liza Seubert – is one of 19 HIP pharmacies around Australia. The Premier spoke at length about the problem of medication errors, etc., in Australia and praised the HIP Chemconsult® system – a particularly effective method of flagging medication issues in prescriptions…he also lauded the benefits of the 24-hour medication information hotline available to customers via the HIP Platinum Care Club loyalty program.
Dr Gallop went on to say “According to Chemconsult, one in every six consultations they conduct end with the pharmacist needing to intervene in some way - which could well translate to keeping hundreds of patients out of the hospital system – an objective and achievement that my Government is obviously happy to support.”
At the launch Liza described how the Chemconsult process had recently helped one of her customers “a new customer came into the pharmacy recently and – while running through the Chemconsult process - we discovered that the doctor had prescribed a dosage twice the maximum for the drug – of course we called the doctor immediately and reduced the dose to the correct level and the customer avoided possible severe side effects.”
Full text of speech by Hon Dr Geoff Gallop MLA, Premier of Western Australia at the opening of Health Information Pharmacy Bentley on Friday 30 July 2004 It’s great to be here in my electorate today to show my support for a local business whose core concern is community health. Did you know that medication error is one of the most common causes of unintended harm to patients in this country? Liza Seubert has responded to this particular issue by joining a national network of private industry pharmacists to help address medication safety within the community.
Health Information Pharmacy (HIP) is one of a growing number of pharmacy networks in Australia. HIP already has around 19 member pharmacies in NSW, Victoria, Queensland and Tasmania – but Hillview Pharmacy (now HIP Bentley) is the first to join its network in WA. One of the common goals all the pharmacy networks share is to reduce the number of medication problems in Australia and increase consumer safety.
They all take a proactive role in the prevention and intervention of potential medical problems, predominantly at the time a person is at the counter filling their prescription or asking for advice. A particular group that benefits enormously from this is our senior population, who tend to be the greatest users of pharmaceutical products. And yet they are only one of many groups within the community that benefit from the skills and knowledge trained pharmacists can offer.
HIP pharmacies are linked to a national medication consulting system called Chemconsult, which enables them to give comprehensive and consistent advice to patients about the medications they are taking. The network also operates a 24-hour medication information hotline available for people to ring any time of the day or night, seven days a week. According to Chemconsult, one in every six consultations they conduct end with the pharmacist needing to intervene in some way - which could well translate to keeping hundreds of patients out of the hospital system – an objective and achievement that my Government is obviously happy to support.
Partnerships between the public and private health sectors have always been important, but I believe it has become more important than ever to find ways to work together towards our common goals. I applaud industry co-operatives like the HIP network. My Government certainly acknowledges the important role that all pharmacists play in the community, particularly in the areas of medication safety and legal and illegal drug use, and for that we offer our full support.
I’d like to congratulate Liza for setting up the first Health Information Pharmacy in Perth. She is already known for her good work within the community, after being nominated for this year’s Australia Day City of Canning Local Citizen of the Year Award. I wish you every success with this new venture, Liza, and look forward to seeing the positive results that will come from the improved flow of pertinent information to patients. I now declare the new Health Information Pharmacy in Bentley officially open. Thank you.
12.07.04
4 Pharmacies Join Health Information Pharmacy Group
Health Information Pharmacy has just announced that 4 more pharmacies have joined the group bringing the total number of its pharmacies in Australia to 18.
Three of the new stores are in Queensland (Toowoomba, Belmont in Brisbane and Miami Beach) and one is in Hurstville NSW – of these 2 are converting from other banner groups and 2 are stores acquired by existing members of the group. The new store in Hurstville is an example of HIP’s accelerated ownership program – Gary Cheung (previously manager of the HIP store in Castle Hill) has acquired the pharmacy in partnership with other HIP members – and leapfrogged the problems faced by other first-time pharmacy owners with the support of the HIP model and existing members.
The Health Information Pharmacy model gives pharmacy owners powerful tools, systems and strategies to combat current and future threats to their business. Lucy Parker, owner of the High Street Plaza Pharmacy in Toowoomba, says that the HIP model has given her “…a plan to follow and someone to help along the way - and that’s just the beginning. There are unlimited opportunities through HIP and personal education and development”.
Jenny Leung, owner of Belmont Day & Night Pharmacy in Brisbane explains why she has joined the group: “Our pharmacy was running well but I knew that we needed to fine tune it to get it to the next level. I was also looking for a way to have more free time away from the pharmacy to bring up my young children. When we came across Health Information Pharmacy we realised that this was the model that would enable us to do both these things – HIP is the next generation in pharmacy groups”
