INDEPENDENT OASIS

Central Penn Business Journal, Sep 21, 2007 by Olenchek, Christina

LANCASTER COUNTY

Solo practice is right medicine for pharmacist

Walking into Custom Prescriptions of Lancaster is an experience far different than the impersonal, rushed environment of many large chain pharmacies.

Brick and mahogany wrap around the wide-open lobby. Sunlight streams in through the floor-to-ceiling windows that give expansive views of cars zooming down the street. It is an oasis from the ordinary that Diane Boomsma wants to create with her new pharmacy, which opened in May at 902 N. Duke St.

The venture is a leap of faith of sorts for Boomsma. Some observers fear that many independent pharmacies will not be able to survive increasing pressures from competitors, insurance companies and the government.

"(The number of independent pharmacies) is slowly eroding down," said Pat Epple, executive director of the Pennsylvania Pharmacists Association in Harrisburg. "The challenges are becoming more daunting every day."

Boomsma was a compounding pharmacist at Williams Apothecary, also in Lancaster, before she opened Custom Prescriptions in May. Compounding - the practice of producing medications from scratch using raw materials - remains the focus of her work. She also offers over-the-counter nutritional supplements and wellness products.

Boomsma said she left Williams Apothecary because she yearned to be independent and make her own decisions. That independence comes at a price. Boomsma would not disclose her startup costs or projected revenue, but she said coming up with enough capital to get the pharmacy afloat was a major challenge. She often consults with other independent pharmacists for advice on how to run her business successfully.

"As a pharmacist, I was trained to do pharmacy, but not to do business," she said.

Epple estimated that about onethird of pharmacies in Pennsylvania are independently operated. Independent pharmacists often suffer the most from industrywide challenges because they don't have the size or the infrastructure of larger retail chains, Epple said. Retailers, such as Target and Wal-Mart, are large enough to absorb inadequate pharmacy reimbursements and new government regulations. Independent pharmacies often don't have that option.

"They're dealing with so many incidental issues that they're not paid for," Epple said. "It takes away from their real role as pharmacists."

Bethany Miller knows the challenges. Miller, part of a family of independent pharmacists, bought Lion Pharmacy in Red Lion, York County, five years ago. One of her biggest obstacles is the growing trend among employers to require workers to fill prescriptions through mail-order companies. Also daunting is the impact of shrinking reimbursements from insurers and government payers, she said.

Miller has survived, in part, by diversifying her offerings. In addition to medication, Lion Pharmacy offers other merchandise, such as cards, gifts and skin-care products. Miller said she hopes to offer programs targeted to people with diabetes, high cholesterol and weightcontrol issues.

"If we can branch out in ways that help people, we can bea viable, great alternative," Miller said.

Rhoads Pharmacy & Gift Shop turned to new markets, as well. Less than 20 percent of the 15,000square-foot store in Hummelstown is devoted to prescriptions and over-the-counter medicines. The rest features cards and gifts.

"You either increase (sales) volume or cut overhead, or you're out of business," said David Lutz, who has owned the Dauphin County pharmacy for 34 years.

What keeps Boomsma, Miller and Lutz going is their ability to personally affect their customers. Many pharmacists are attracted to independent practice because of the one-on-one relationship they can have with each customer, Epple said.

People help Miller get through the rough times.

"You feel that you're making a difference," she said. "No matter what, it's fun to come to work every day. I would not trade it for anything."

The challenges should not scare off anyone interested in independent practice, Boomsma said.

"It does take a lot of work, but it's doable," she said.

BY CHRISTINA OLENCHEK

chriso@journalpub.com