Benjamin GuthrieKara Herko

Rachael MeadAshley Sweaney

Investing in the Health of Our Community

Mission StatementTo offer superior quality healthcare in bothservices rendered and products dispensed.To serve our patients by offering extraordinarymedication management and counselingservices, health education, and affordableprescription drugs. To return and reinvest allprofits into the community of Ajo to benefit ourneighbors.

Legal Structure

• Nonprofit corporation• State Articles of Incorporation • IRS Form 1023 501C3 Organization• Advantages

– Tax exempt from state and federal taxes– Charitable donations tax deductible– Access to grants

Background of Business Model

• Pharmacy Over the Rhine, Cincinnati, OH– Profits reinvested in community

• Application to the community of Ajo

Photograph by: Carrie Cochran, The Cincinnati Enquirer

Location Analysis

• Population 4,200• Rural community• Low income area• Desert Senita

Health Center

Buyout Plan• Purchasing Tom’s Pharmacy

in Ajo, Arizona– Nearest pharmacy is 75 miles

away• Integral part of community for

decades• Tom Branson is committed to

seeing the legacy of independent community pharmacy continue in Ajo Mr. and Mrs. Branson

Tom’s Pharmacy

Current Model

• Hours of operation

• Current staff– Adding a part-time

pharmacist

• Prescription volume

Prescription Products• Continue to supply all commercially available

products• 340B contract with FQHC (Desert Senita

Community Health Center)– Lacks in-house pharmacy– Significant savings on pharmaceuticals – More affordable services for patients

• Remain part of United Drugs co-op

Over the Counter Products

• Continue to provide OTCs on which the community depends

• Reorganize the front-end into accessible sections– Men’s health– Women’s health– Cough and cold

Additional Clinical Services• Nonprofit – reinvest in the community• Medication management programs

– Free to all FQHC patients– Payments on sliding scale– Chronic disease education

• COPD, diabetes, heart disease

– Semi-annual community health fairs– Wellness programs in local schools

• Funded by Arizona Area Health Education Center

Ownership and Management

Benjamin Guthrie

• Supervising Pharmacist

• Full Time Employee

Ownership and Management

Rachael Mead

• Part-time Pharmacist

• Part-time at Desert Senita– Funded by grants such as the

Health Center Controlled Network Grant

• Preceptor

Ownership and Management

Kara Herko and Ashley Sweaney• Per diem pharmacists• Plan clinical services

Insurance and SecuritySecurity• ADT system – silent alarms with motion

detectors• Increase CII security, locking patient counseling

room

Insurance• Comprehensive coverage for the company

through Pharmacists Mutual• Individual Liability and Health Coverage through

Pharmacists Mutual

Marketing Plan

Ajo, Arizona

Ajo

Rocky Point

Why

HickiwanVaya Chin

Gila Bend

Marketing PlanCurrent Clientele• Desert Senita Community Health Center

patients• Local independent prescribers• Outside prescribers

Potential Clientele• Patients who currently fill prescriptions

through mail-order pharmacies• Patients referred outside of the community

Marketing PlanCurrent Competition• Mail-order pharmacies• Referred patients filling

prescriptions outside of Ajo

Potential Competition• Opening of chain pharmacy

in area

Marketing Plan

Promote Services• Medication therapy

management• Disease/drug

management• Disease screenings &

education

Marketing Plan

Community Involvement• Two health events each

year• Summer clerkships• 4th year rotations • Grand re-opening

Marketing Plan

Advertisement• Grand re-opening promotion• “Weekly Specials” ads in “Copper News”• Quarterly $10 store credit coupon with

transferred prescription

Pharmacy Layout Improvements

• Negotiated renovations with Mr. Branson

• Changes are currently being undertaken

• Will be complete by the time we take ownership

Current Pharmacy

Layout and Workflow

Financial Information

• Projected at a growth rate of 8.5% from NCPA digest

Expense Projections

• Depicts greatest source of expenses

• Other miscellaneous expenses include rent, computer system, utilities, and insurance

Expense 2012 2013 2014

Cost of Goods Sold $1,330,000 $1,444,000 $1,566,000Payroll: Wages $207,900 $225,500 $244,700

Payroll: Benefits $34,600 $37,600 $40,800

Total Expenses $1,669,500 $1,812,300 $1,965,800

Projected Cash Flow• This shows short term snapshot of Ajo Neighborhood

Pharmacy’s ability to be financially viable• Net increase in cash will be distributed in a unique

manner, owing to not-for-profit design of corporation2012 2013 2014

Operations $50,267.71 $54,575.46 $59,048.87

Investing 0 0 0

Financing -$25,400.00 -$25,400.00 -$25,400.00

Net Increase in Cash $24,867.71 $29,175.46 $33,648.87

Loan Request

Other Metrics

Inventory Evaluation• Mr. Branson carries $60,000 of current

inventory• Loan request includes inventory at buyout

Cost Per Square Foot Analysis2012 2013 2014

Total Sales / Ft2 $3,465 $3,759 $4,079

Total Costs / Ft2 $703 $763 $828

Total Income / Ft2 $101 $109 $118

Summary

Investing in the Health of Our Community

Questions?