Dr Robert Magnus a session during the Oculus Insights 2017 EU Summits in Amsterdam on prescription management for any type of veterinary practice.

1. Prescription
Management
Innovative Practice Ideas
Robert P. Magnus DVM, MBA
Managing Partner - Oculus Insights
LLP
bmagnus@OculusInsights.net
www.OculusInsights.net
1

2. THANK YOU!

3. TODAY
What is Rx Management?
What is happening in the market?
What is the impact for your business?

4. Prescription (Rx) Management
Animal Health
Rx Management is the process of
providing veterinary clinicians and animal
owners the tools to issue, refill and persist
therapies across prescription medications
and continuity-focused OTC products.
Creating the best possible delivery of
needed medications to the patient in
acute and chronic illness

5. -- Dr. C. Everett Koop
former U.S. Surgeon General
“Drugs don’t work on patients
who don’t take them.”
5

6. How do you manage prescriptions
today?
6

7. North America - Retail
Challenges

8. Europe
The Dutch government and
other agencies throughout the
EU are not happy with the
buying behavior of animal
owners through international
web based retail shops…
New legislation in the works…?

9. Real Life
See a Patient
(Patient/Client/Relationship)
Assess the Situation
Prescribe a Medication
Dispense the Medication Write a Prescription
1. Buy from someone else
2. Do not use meds

10. Practice Management Options
 Wait for client to call
 Hire staff/resources
 Use technology providers

11. What are the core issues for
quality patient care?
Compliance
Persistence
What are the core issues for
owner in medicating their pet or
horse?
Convenienc
e
Cost

12. Compliance: The extent to which the
client’s behavior coincides with the
provider’s recommendation with regard
to dosage and frequency of medication
12
Source: American College of Preventive Medicine, http://www.acpm.org/
What is best for the patient?
Persistence: The duration of
time from initiation to
discontinuation of therapy, at any
level of compliance

13. Gaps are bad for the patient

14. The Leaky Bucket
14
Initial Prescription*
The Refill*
The Renewal*
Adherence*
Loss to Others
Product Gaps
Follow up exams
Continuous engagement
with your client
*Assumes correct dose, correct use, correct timing

15. Compliance
Compliance will be the next most
significant medical innovation in
veterinary medicine
Technology enabled prescription
management removes barriers for
animal owners and veterinarians
“Compliance: Taking Quality Care to the Next Level” American Animal Hospital Association

16. Order
Refil
l
Exam
Renew
Prescribe
Complete Prescription Lifecycle Management
57%
Conversion
Through Proactive
e-Recommendations

17. Examples
Portland, Maine USA
www.vetsfirstchoic.com
Custom built tools, applications and analytics
for in-clinic and mobile practitioners with
advanced e-commerce capabilities to meet
changing doctor and animal owner needs

18. 1
Quality is Key
Quality Accreditation
for pharmacy, prescribing, product pedigree, transaction processing
An Outstanding Owner Experience

19. Rx Notification
Refill Reminder
Robust Client
Communication System Email Marketing
Integrated messaging enables follow-
through on treatment protocols.
Convenience is Key
Social Media

20. Data - Compliance is High
50%
55%
60%
65%
70%
75%
80%
85%
90%
Equine Drug Average Compliance
Top equine products
average 65-83%
compliance but need
more years to
confirm persistence
Source: Vets First Choice compliance data based on 12 months of data,
and is prorated for time since script was written

21. Examples

22. Pharmacy Study Group

23. Reached lapsed patients via email,
outbound calls, and social media
Emphasis to drive AutoShip
subscriptions
Tracked revenue per practice,
medication compliance and share of
wallet
100% pay for performance
C A S E S T U D Y: P R A S C E N D
ENGAGING LAPSED BUYERS

24. O UR PLATFO R M E NA BLES IMPROV E D
CLINICAL & FINANCIAL OUTCOMES
41% compliance in
Prascend**
Proactive client
engagement
2
W I T H
Simplified prescription
management
3
Improved medication
compliance
4
Reacquiring lost clients5
INCREASES TO
82% with
**
$445,000
Incremental Revenue
Opportunity
with **
**DVM in-house analysis across 103 veterinarians
Identify gaps in care1

25. +27%
Total Revenue
+83%
Specialty Pharmacy
+62%
Proactive Scripting
PHARMACY STUDY GROUP PRACTICES
A NEW BEST PRACTICE
+24%
Services
+282%
AutoShip
+426%
Renewables
Proprietary & Confidential. ©2017

26. >$100,000 revenue per DVM
MARKET 500 Horse Owners per DVM[1]
71%
don’t buy
meds from
their vet[2]
OPPORTUNITY 355 lost clients
55%
conversion
on active
rx[3]
RECOVER 195 clients
2.8
orders per
horse
owner per
year[3]
ANNUAL $546/year
$192
average
order
value[3]
GAIN
$105k
per DVM
26
1) AVMA, 2012 U.S. Pet Ownership & Demographics Sourcebook, https://www.avma.org
AVMA, Market Research Statistics – U.S. Veterinarians – 2014, https://www.avma.org
2) Meyers, 2014 Communications Solutions for Veterinarians study at http://www.csvets.com
3) Vets First Choice Data
Source

27. Pharmacy Study Group

28. THE PHARMACY STUDY GROUP
Companion Animal
1 0
P R A C T I C E S
F R O M
A C R O S S T H E
U S A
F r o m 1 t o 8 . 7
F T E
V e t e r i n a r i a n s

29. 4 QUESTIONS
What is the best practice?
What is the financial impact?
Does this cannibalize profits?
Is it difficult to implement?

30. DOUBLE-DIGIT GROWTH
PER VETER IN AR IAN
+14%
TO TAL R E V E N U E S
+0.5%
I N - H O U S E P R O D U C T S
+67%
O N L I N E P R O D U C T S
+$88K +$.8K +$24K

31. NET PRODUCT GROWTH
PER VETER IN AR IAN
+14%
TO TAL R E V E N U E S
+12%
+$88K
+$24K
TOTAL PRODUCTS

32. SERVICE IMPACT
+14%
SERVICE REVENUES
+21%
S U B S E T L AB W O R K
+$65K
+$30K
PER VETER IN AR IAN

33. NET ONLINE PROFITS
$13,197
NET BANK DEPOSIT
22% Margin
No Inventory Cost
Little Effort
PER VETER IN AR IAN

34. INNOVATION: ACTIONABLE ANALYTICS
COMPLIANCE REPORTS | PILOT SHOWS IMPACT
FUTURE BENEFIT TO PRACTICES:
Leverage actionable insights into gaps in care linked to pro-active prescription
management to unlock financial and health outcomes for all stakeholders
ACTIONABLE ANALYTICS
PILOT LAUNCH
• On-demand report
production
• Pilot to test impact 70
partner practices
• Consultation calls to
practices to train on how
to ACT on Actionable
Analytics
Note: Pharmacy Study Group members had huge input
on report design
Hometown Animal Hospital, Sunrise, AZ
Total Canine Patients Assessed: 8,046
Assessment Period: April 2016 – April 2017
Proprietary & Confidential. ©2017

35. KEY REPORT ELEMENTS…
Individualized
revenue
opportunity
calculated
Actual # of
canine
patients at
the practice
Range of
compliance
calculated
In-house vs. online
compliance compared
Hometown Animal Hospital, Sunrise, AZ
Total Canine Patients Assessed: 8,046
Assessment Period: April 2016 – April 2017
Proprietary & Confidential. ©2017

36. CONCLUSIONS
 Improves compliance and revenues
 Streamlines prescription management
 Expands your inventory
 Enhances service revenues
 Does NOT cannibalize profits
 Is easy to implement
D I G I TAL P R E S C R I P T I O N M AN A G E M E N T:

37. Integration is Key
Medical Records
Patient Links
Automated Shipping
Renewals
Proactive Recommendations

38. Financial Impact
Recapture Sales
Reliable Medications & Less Inventory
Loss
Ethical Veterinary Platforms
Sale of Other Items

39. Impact on Practice Value
Modest Net Profit € 20,000
Reliable Cash Flow Stream
EBITDA Multiple Impact
3X € 60,000
5X € 100,000
7X € 140,000
10X € 200,000
Valuable for Equine and Companion Animal Practices

40. Take Home Message
Significant gaps exist
 In patient care
 In compliance and persistence
Significant opportunities exist
 In better medical care
 In financial gains for your business
Significant changes are taking place in
the marketplace in medication purchases

41. Thank You!
Robert P. Magnus DVM, MBA
Managing Partner Oculus Insights, LLP – North America
bmagnus@OculusInsights.net
01-262-424-7625