On demand

Building a Pharmacy P&L That Actually Reflects Drug Cost, Margin, and Risk

  • 74 minutes
  • 39 slides
What we'll cover
  • 0:00 Why Most Pharmacy P&Ls Miss
  • 8:00 Revenue Lines That Need Separation
  • 18:00 Drug Cost Beyond The Invoice
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What you'll take away

Practical shifts you can apply this week

  • Identify True Performance Lines

    Identify the revenue, drug cost, and adjustment lines a pharmacy P&L must separate to show true economic performance.

  • Compare Margin Cost Signals

    Compare invoice cost, effective acquisition cost, and reimbursed margin to diagnose where profitability is actually earned or lost.

  • Design A Contribution P&L

    Design a contribution-style pharmacy P&L that isolates mix effects, operational leverage, and payer-specific risk.

  • Evaluate Margin And Cash Exposure

    Evaluate inventory, DIR-style adjustments, clawbacks, and specialty volatility when estimating period margin and cash exposure.

  • Draft A Monthly Review

    Draft a monthly review process that turns the P&L into pricing, purchasing, and contracting decisions.

Agenda

What we'll cover

  1. 0:00

    Why Most Pharmacy P&Ls Miss

    See why one blurry margin line can hide reimbursement issues, timing effects, and risk.

  2. 8:00

    Revenue Lines That Need Separation

    Split claims, cash, fees, and post-period adjustments so net realized revenue is visible.

  3. 18:00

    Drug Cost Beyond The Invoice

    Compare invoice cost with effective acquisition cost across credits, shortages, and sourcing choices.

  4. 28:00

    Build The Margin Waterfall

    Bridge net revenue to contribution margin by payer, drug class, and location.

  5. 37:00

    Put Risk On The Statement

    Add reserves for DIR-style adjustments, clawbacks, inventory issues, and specialty concentration.

  6. 47:00

    Map Fixed And Variable Costs

    Separate dispensing costs from overhead to spot leverage without blaming the wrong line.

  7. 54:00

    Use The P&L To Decide

    Wrap with a monthly review cadence, action thresholds, recap, and live Q&A.

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