NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

[October 2009]Dear Valued NCPA Member:We are pleased to present you with the complete financial information of the 2009 NCPA Digest, sponsored by CardinalHealth. In today’s pharmacy environment, it is more important than ever that you take an in-depth look at yourpharmacy’s financial picture against national pharmacy averages to come up with a real-world strategy for yourpharmacy’s future. Outlined here is an approach to assist you in successfully integrating the key Digest findings into anaction plan for your pharmacy.Step 1:Use your financial statements to assess your present situation and identify any significant trends. If you participated in thesurvey, then you will receive a free benchmarking analysis from NCPA using the data you submitted.Step 2:Compare your company’s current status to:• Your own past performance (prior years’ financial statements)• Ratios for the Top 25 percent (Tables 2–4)• Ratios for “All Pharmacies” (Tables 2–4)• Ratios for pharmacies in your sales category (Tables 5–7)Step 3:Identify the strengths and weaknesses of your company and identify possible causes for the problems. Refer to the Guideto Benchmarking available only to NCPA members at www.ncpanet.org/members/digest.php.Step 4:Set goals for the year and develop a written action plan for achieving better results.Step 5:Implement plan and monitor its progress. Review the plan monthly and evaluate its performance and focus on additionalareas that may require improvement. Revise the plan periodically if necessary.Step 6:Repeat the entire process, making corrections and adjustments for the differences between actual results and measurablegoals. Financial management is an ongoing process, not a short-term project.Step 7:Work with your fellow pharmacists, your internal management team, professional accountant, and outside businessadvisers to gain the most from their expertise and this process.We know that you will find the information contained in these pages useful for your pharmacy. For more informationabout NCPA’s various management offerings, including continuing education seminars, publications, and web resources,visit NCPA’s website at www.ncpanet.org or contact the NCPA Management Institute at 800-544-7447.