Medicine Shoppe Tries To Appease Franchise Holders

Stl Today:

Medicine Shoppe International Inc., of Creve Coeur, has watched at least 14 percent of its franchises pull out or go bankrupt, and another 9 percent have filed for arbitration against the company for breach of contract.

But now the nation’s largest operator of franchised pharmacies is rolling out a series of initiatives including in-store health clinics that it says will provide new value to franchisees.

Medicine Shoppe’s new programs are designed to improve accounting, billing and inventory management while giving franchisees new ways to bring in customers and generate cash flow.

“It’s the scale and leverage of a chain that enables the care and individuality of an independent,” said Terry Burnside, Medicine Shoppe’s president. Burnside announced the changes during a meeting this month of franchisees in St. Louis.It’s been a difficult few years for independent and franchised pharmacies. Some insurers and pharmacy benefit managers are requiring their members to patronize certain large chains or order their drugs through the mail. At the same time, new technologies have made it easier for bigger players to track inventory and keep patient records.

Some Medicine Shoppe franchisees allege the company has failed to keep up with these industry advances and charges store owners too much for the limited services it provides.