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From filling prescriptions to offering healthcare services, your pharmacy’s role is expanding — or at least it should be. While your pharmacy likely accepts most insurance types, there’s another revenue stream that’s often overlooked: cash-based services.
These services allow you to provide patients with direct, out-of-pocket options for products and care — no insurance required.
What exactly are cash-based services? How can they benefit your pharmacy? Read on to learn about some examples and why they are becoming increasingly important in today’s pharmacy landscape.
What Are Cash-Based Services?
Cash-based services are offerings provided by your pharmacy where patients pay out of pocket, without going through insurance.
They can range from routine products like prescription medications and vaccines to specialized health consultations. These services help diversify your pharmacy’s offerings and create new revenue streams.
With convenience being the name of the game now more than ever, cash-based services can set your pharmacy apart as a go-to healthcare destination.
Immunizations are one of the most common cash-based services offered by pharmacies. Flu shots, shingles vaccines, and travel vaccines are often paid for directly by patients, especially when they’re not covered by insurance. Offering walk-in or appointment-based vaccination services helps to meet patient needs while boosting your pharmacy’s bottom line.
Point-of-care testing lets your pharmacy offer quick health screenings like blood glucose testing, cholesterol monitoring, and even rapid COVID-19 tests (not to mention flu tests, an absolute must-have for the fall and winter times).
Some insurance plans don’t cover these services, preferring to cover them as a medical claim in a doctor’s office instead. However, patients will prefer which saves them time and allows them to skip the doctor’s office.
While some MTM services are covered by insurance, offering additional consultations as a cash-based service can benefit your pharmacy. These consultations can help patients manage chronic conditions, adjust their medications, and improve their health outcomes — all while generating extra revenue for your business.
What's more, in-depth patient consultations can do wonders for your patient relationships. A simple walkthrough or recommendation can instill even more trust between you and their patient, strengthening your patient base. The best part? You don’t have to file an insurance claim.
For more on how to strengthen patient relationships, read our blog, “How to Build Stronger Patient Relationships in Your Pharmacy.”
Many patients are looking for guidance on how to manage their health beyond prescriptions. Offering wellness services like nutritional counseling, weight management programs, or smoking cessation programs can appeal to patients seeking a more holistic approach to health.
These kinds of consultations differ from the kind previously mentioned since these focus on specific kinds of services. Weight management programs and smoking cessations are more niche services, which can be a powerful asset in your pharmacy’s bottom line.
Then we get to perhaps the ultimate cash-based service: your OTC products. Stocking a range of OTC products — from supplements to skincare items — gives your patients access to health essentials without the need for a prescription. These products are often purchased directly by patients, making them an easy way to increase your cash flow.
You can also dispense these items as prescription items. Your wholesaler likely carries OTC-grade, such as antihistamines and anti-inflammatories, in prices that may cost less than their brand-name counterparts.
All you need is a patient’s prescription and you can dispense these products. Since most insurances won’t cover OTC strengths, you’ll get the lion’s share of the profits.
Adding this to your inventory is even easier with the help of your pharmacy software. For example, PioneerRx lets you add products to your pharmacy’s repertoire and generates performance reports on said products to let you see how they’re doing.
For more ways your pharmacy software can boost your pharmacy’s profits, read our blog, “7 PioneerRx Features to Grow Your Pharmacy’s Profitability.”
Cash-based services are not just about making extra money — they enhance the patient experience. By offering convenient and immediate care options, you can better serve your community while providing services that patients may not easily find elsewhere.
Moreover, cash-based services often have higher profit margins compared to insurance-reimbursed prescriptions. Since you’re not waiting for insurance claims to be processed, the cash flow is immediate and can help stabilize your business financially.
Cash-based services can do wonders for your pharmacy’s finances. However, DIR fees and reimbursement figures have seen better days.
We don’t need to go over what pharmacy middlemen and PBMs are doing to the industry — you likely feel it already in your pharmacy’s bottom line. Adopting a cash-based model for your entire pharmacy is not some passing fad like an invisible pizza recipe. It is becoming the way to go for many independent pharmacies.
At a cash-based pharmacy, everything is priced at the base generic medication cost plus a small dispensing fee. No inflated prices or hidden fees from third parties — patients can become members to access even lower costs.
A cash-based model might be the next step for your pharmacy if you’re tired of the ongoing back and forth with PBMs.
But don’t just take our word for it — PioneerRx user and Blueberry Pharmacy Owner Kyle McCormick tells all about his pharmacy model and how it benefits both his business and his patient base in this article from the RedSail Technologies blog.
By focusing on cash-based services, you can not only increase your revenue but also build stronger relationships with your patients—helping them on their health journey in a way that’s both convenient and affordable.
See how cash-based services can transform your pharmacy into a bonafide healthcare destination. Your patients and pharmacy’s profits will be glad you did.
