http://crazyrxman.blogspot.com/2014/06/how-to-drive-business-to-goofmart.html
From the article:
So here we are, while patients are waiting, looking at this year’s numbers compared to last year. Sales are actually up but our bottom line is down because the cost of the drugs went up more than sales went up.
I also saw a post from a indy in Tx that stated that gross profit margin were shrinking.. because of PBM’s dragging their feet on keeping price increases current..
Yet a entity like CVS/Caremark posts a 18% net profit INCREASE … while gross revenues increased 6%.. http://bigstory.ap.org/article/cvs-caremarks-2q-profit-climbs-16-percent
I don’t have a CPA/MBA or any such advanced academic degree.. my only reference of how a business functions… is having built and ran my own pharmacy/HME company for some 20 yrs.. To get the bottom line to increase THREE TIMES the increases of the TOP LINE..
On the broad scale… the only way that you can get there is raise the price you charge your customers, lower the cost of the products you buy and/or cut other operating expenses.
Of course, CVS has been fined before for OVER STATING EARNINGS http://www.bostonglobe.com/business/2014/04/08/sec-fines-cvs-caremark-million-for-overstating-earnings/wmSYVfcIuEiJlyqLXzY9OJ/story.html
They say that history repeats itself !
Filed under: General Problems
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