Aurora thrives on service

Chain Drug Review, April 28, 2008

ELM GROVE, Wis. -- Pharmacy plays a unique role in the overall operations of Aurora Health Care, a not-for-profit integrated health care provider with facilities throughout Wisconsin.

Established in 1984, Aurora has become a nationally recognized leader in efforts to improve the quality of health care, according to a company spokesman. It has sites in more than 90 communities throughout eastern Wisconsin, including 13 hospitals, more than 100 clinics and more than 130 community pharmacies. Its pharmacy operation includes freestanding community drug stores, clinic-based and in-hospital pharmacies, and pharmacy departments located within supermarkets.

"Our approach to community pharmacy is based on personalized service," says the spokesman. "Getting to know our patients helps us do our job better.

"Aurora pharmacists provide one-on-one consultations and are always available to answer any questions our patients might have."

The chain embraces a competitive pacing strategy, regularly doing market basket comparisons to make sure its prices are comparable to or lower than those charged by other pharmacies. It emphasizes value-based services in meeting patient needs.

"We always check for and dispense comparable generic medications when allowed by a patient's doctor," the spokesman says. "We are always on the lookout for innovative ways to provide greater value to our customers through initiatives such as our Aurora Freedom 55 program."

A free membership program for adults age 55 and older, Aurora Freedom 55 provides members with a variety of discounts, special features and health information. The program is designed to make members' lives healthier and to save them money, the spokesman says. Among the services that patients who enroll in the program receive are:

* A free membership card that provides emergency access to their medical history.

* A 10% discount on Aurora brand over-the-counter pharmacy products.

* Up to a 10% discount on prescriptions filled through any Aurora Pharmacy unity.

* 24-hour access to free and confidential medical advice, health information and a selection of physicians.

* A 20% discount on home medical equipment and supplies from the Visiting Nurse Association of Wisconsin.

* Discounts on hearing aids and massage therapy.

Most Aurora Pharmacy drug stores carry a broad mix of health and beauty aids, vitamins and supplements, pain relief items, cough and cold remedies, home medical supplies and other traditional drug store merchandise. Selected locations also offer diabetes care centers, flu vaccinations, immunizations for adults and smoking cessation programs.

Aurora plays a proactive role in pharmacy affairs on the business and legislative fronts in Wisconsin. It was recently honored for those efforts by the Pharmacy Society of Wisconsin with the group's 2008 Good Government Award.

"We're honored to be recognized for Aurora's commitment to improve the lives and health of the people in the many communities that we serve," says John Gates, Aurora Pharmacy's director of operations.

The values Aurora Pharmacy reflects in its operations and patient care are the values of its parent organization. "In health care listening is one of the most important skills we have," says Nick Turkal, chief executive officer of Aurora Health Care. "We listen to our patients, the communities we serve, the businesses that help make our communities financially healthy, our caregivers--all those who have a stake in health care."

Aurora Pharmacy does more than $330 million in annual sales. However, according to reports in the Milwaukee Journal Sentinel, Aurora Health Care loses money on both its pharmacies and its more than 100 clinics. Nevertheless, those services are considered critical to its overall vision.

Since its founding almost 25 years ago, Aurora Health Care has grown to become the largest health care system and the largest private employer in Wisconsin.

Ed Howe, who founded the company and served as its CEO for more than 20 years, is considered a pioneer for his early recognition of the advantages inherent in a large health care system that brought together not only hospitals but also pharmacies, clinics, home health care and physician practices.

Howe's conviction was that a large, integrated health care system could provide better and more efficient care, and he never wavered from it, says the company spokesman. The benefits and economies of scale that come with being part of a large health care system range from additional leverage when negotiating contracts with health plans to being able to hire experts in health care quality, he adds.

AURORA HEALTH CARE

* TOP EXECUTIVE

Jim Moore, president

* HEADQUARTERS

12500 W. Bluemound Road

Elm Grove, Wis. 53122

Phone: (262) 787-2105

Fax: (262) 787-2140

Web site: aurorahealthcare.com

* INDUSTRY RANK--24 in sales, 15 in stores

* Full-year results

Sales--$336.3 million *

Net earnings--N/A

Net margin--N/A

* Number of drug stores--129

* Number of states operating--1

* Number of stores opened or acquired in 2007--11