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TSE puts pharmacy’s evolution in perspective

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The just-concluded NACDS Total Store Expo in Denver held, to paraphrase Shakespeare, a mirror up to the chain pharmacy business, and the reflection it produced looked, in many significant ways, very different than it did a generation ago.

The just-concluded NACDS Total Store Expo in Denver held, to paraphrase Shakespeare, a mirror up to the chain pharmacy business, and the reflection it produced looked, in many significant ways, very different than it did a generation ago.

To begin with, the scope of the event’s sponsor, the National Association of Chain Drug Stores, has evolved beyond the trade class that is singled out in its name to include all mass market retailers with a stake in community pharmacy, health and wellness. For evidence of that, one need look no further than the current NACDS chairman. Randy Edeker, who assumed the role in April, is chairman, president and CEO of Hy-Vee, a food/drug combination store operator, some of whose outlets offer everything from prepared food and nutrition counseling to wine and spirits and a sit-down restaurant. His chairmanship points to the deep involvement in NACDS of such diverse retailers as Walmart, Meijer and H-E-B.

Many of the drug chains that traditionally formed the core of NACDS’ membership have morphed into very different entities. Perhaps the most striking example is CVS. Twenty-five years ago the company was a regional retailer, with fewer than 1,000 outlets in 14 eastern states. Since then CVS’ store count has risen more than eightfold, giving it a reach that extends across the country. Along the way, the company became the second-largest pharmacy benefits manager in the U.S., and the leading operator of retail medical clinics.

The transformation of the CVS drug chain into CVS Health shows the trajectory the entire industry is on. Anyone who spent much time at Total Store Expo should recognize that the pace of change continues to accelerate, with pharmacy poised to secure a more prominent role in health care delivery. With its unparalleled infrastructure to ensure easy patient access and the underutilized capabilities of the pharmacists who staff its stores, the industry has the potential to help solve the seemingly intractable problem of improving the quality of care while, at the same time, limiting total health care expenditures.

If NACDS and its member companies succeed in overcoming legal and regulatory barriers, and developing business models to enable the industry to deliver on that promise, a few years down the road retail pharmacy will look very different than it did at this year’s Total Store Expo.

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