U.S. Pharmacy Information Systems Markets

Published by: Frost & Sullivan

Published: Sep. 10, 2004

Table of Contents

Abstract

Automation is the key to managing the rapid increase in prescriptions and the shortage of trained pharmacy staff in the United States. Pharmacy automation systems (PAS) that manage space constraints and drug inventory, and lower the possibilities of errors in prescription management are becoming increasingly popular, especially in retail shops such as chained pharmacy stores. Automated dispensers that enable centralized filling and processing of prescriptions allow vendors to meet the growing prescription filling demand. Further, providing cost-effective solutions and value-added services without affecting the layout of the pharmacy is expected to enable pharmacies to forge long-term customer relationships.

This research from Frost & Sullivan evaluates the current and future prospects of the U.S. pharmacy information system (PIS) in two main sectors: pharmacy automation systems (PAS) and pharmacy management software (PMS). It reviews the potential for new technologies that are likely to enter the market and evaluates the competitive profiles of leading participants. Additionally, it assesses the principal drivers and restraints in each of these sectors influencing the industry, thereby enabling companies to formulate their sales strategies.

Expansion Plans Curtailed Due to Regional-Level Variations in Legal Requirements

Despite the growing interest on the part of retailers, the varying legal requirements among pharmacies in different states have restrained the development of small vendors into multi-regional operators. While these smaller vendors wield some degree of power in their own region, they are rendered ineffective while operating in geographical areas that come under the purview of different regulations.

"Many state pharmacy boards are yet to address central fill or central processing of prescriptions from a regulatory standpoint," says the analyst. "Though small vendors are able to comply with their state’s rules, expansion into other areas becomes difficult." Vendors are trying to address the issue and aid multi-site pharmacies by evolving a PMS technology that is capable of pooling all the data into a centrally located database management system.

Rapid Growth in Prescription Contributes to Lowering Long-Term Costs

The growing number of automated refills has popularized the uptake of central-fill facilities. As the economies of scale are reached, the cost per prescription is expected to reduce. Retailers with their own distribution networks and grocery chains with in-house pharmacy stores are also likely to contribute to the reduction of costs.

Further, fully supported robots that can substitute counting systems and perform additional activities are a viable option for pharmacies that generate more than 150 prescriptions a day. Not only can these facilities enable pharmacies to better utilize their time and resources to increase customer demand but are also likely to be well equipped to meet variations in demand. "Depending on the number of prescriptions, robots are capable of reducing the staff by at least two members," observes the analyst. "Costing about $10 to $14 per hour, they are expected to be instrumental in lowering the operational expenses in the long run."

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