Is Pharmacy swimming in the Red Oceans or the Blue Oceans?

I've always contemplated the state of pharmacy.

I'm sure there'll be many pharmacists like me, who grew into the pharmacy world listening to comments like:

• pharmacists are undervalued

• pharmacists are not getting paid enough

• pharmacists are over-worked and under-appreciated

and the list goes on...

These sentiments lingered with me for some time.

And in honesty, it slightly set me up for failure to recognize my true value and worth as a pharmacist.

It wasn't until I decided to listen to my inner voice and dare to explore the world of pharmacy beyond the four walls, that I acknowledged and leveraged my worth as a pharmacist and the value I bring to patient care and the healthcare system.

And that's the difference between swimming in the Red Ocean vs the Blue Ocean.

What is the Red Ocean vs Blue Ocean Strategy?

In their co-authored book, Chan Kim and Renée Mauborgne coined the terms red and blue oceans to denote the market universe.

Red oceans are all the industries in existence today, "where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market." Competition turns the ocean bloody red. Hence, the term ‘red’ oceans.

Blue oceans are all the industries not in existence today – the unknown market space, unexplored and untainted by competition. "Like the ‘blue’ ocean, it is vast, deep and powerful – in terms of opportunity and profitable growth."

In a pharmacy context...

The Red Oceans denote the pharmacy industry competing for recognition and reimbursement from healthcare systems, in an existing market, where essentially we are all providing the same services that focus on medicine being a commodity. Our value is tied to a 'product' rather than a 'service'.

The Blue Oceans denote the 'untapped' unique opportunities that pharmacy is not leveraging due to a focus on 'funding' and reimbursements, rather than a focus on capturing new demand, providing innovative services and meeting patient need.

Undeniably, several pharmacies are adopting the Blue Ocean strategy, but I also argue that this isn't the majority.

I have had a pharmacist proprietor once tell me:

" I will not provide this service because I am not reimbursed for it."

Does it matter that it meets a patient's needs? No

Did he dare consider providing it on a 'patient-pay' basis? No

Sadly, this is a common paradigm, that in my view, must change.

The notion of "show me the money" (Red Ocean thinking) before you provide a service will not get us anywhere in our healthcare systems' current pressures.

We must look beyond the existing narrative that has resulted in pharmacy's slow, stagnant growth over the years.

A narrative that perpetuated the state of pharmacy and drove pharmacists either out of retail or out of the profession altogether.

We need to adopt a 'Blue Ocean' strategy

What would the Blue Ocean strategy for Pharmacy look like?

A Blue Ocean strategy is one that is futuristic; it would look at all the untapped opportunities we can leverage, without any limitations. It would have a focus on providing 'value-based' healthcare by maximizing pharmacists' scope, to bring the best of what a pharmacist can offer to patients.

This would be a strategy that:

1. Is not constrained by reimbursements and funding

2. Takes a Unique, uncontested approach to patient-care

3. Focuses on capturing new demand as it arises

4. Leverages every skill that a pharmacist has to optimize medicines

5. Focuses on workforce retention and wellbeing

And how would such a strategy be executed?

1. Looking beyond the constraints of reimbursements

Traditionally, healthcare system reimbursements are often based on a volume-based model, where providers are compensated on the number of services they deliver or the procedures they perform.

This approach focuses primarily on the quantity of care provided rather than the quality, or the value it brings to patients. While this reimbursement model has been the norm for many years, it obviously has limitations that hinder the delivery of high-quality, patient-centered care.

In a Blue Oceans strategy, we must challenge this norm, think beyond reimbursement and instead offer what patients truly see value in and need to live healthier lives.

By shifting the focus to value-based healthcare, pharmacies and pharmacists can align their services with patient outcomes and experiences, ensuring they are providing effective, meaningful healthcare, that provides a holistic approach and considers the overall well-being of the patient.

Examples of value-based pharmacist-led services:

• Comprehensive medication management

• Collaborating with other healthcare professionals to optimize treatment plans

• Personalized medicine services e.g.: pharmacogenomics

• Develop innovative models of care that prioritize prevention, e.g. medication adherence programs that use technology solutions, such as smartphone apps or smart pill dispensers

• Home-delivery options

• Telepharmacy consultations

• Medicine synchronization programs

In addition, a value-based approach allows pharmacies to differentiate themselves from competitors by offering unique and patient-centric services that attract new customers. By understanding patients' needs, preferences, and goals, pharmacies can tailor their offerings to deliver personalized care and experiences.

2. Take a Unique, Uncontested approach to patient-care

Instead of competing in a crowded market, a Blue Ocean strategy encourages pharmacies to identify and occupy untapped niches within patient care.

This could involve offering specialized services tailored to specific patient groups or medical conditions. For example, a pharmacy could establish itself as a hub for diabetes management, providing personalized consultations, educational resources, and access to cutting-edge technologies. By becoming the go-to destination for specialized care, pharmacies can differentiate themselves and create new demand for their services.

Every pharmacy has a unique patient demographic or a patient cohort with a specific healthcare need that they can meet. Blue Ocean thinking involves undertaking a SWOT analysis of a pharmacy's current state to identify untapped opportunities and meet healthcare demands.

By embracing a patient-centred approach and developing innovative service models, pharmacies can better meet the evolving needs of patients while simultaneously positioning themselves as trusted partners in healthcare delivery.

3. Focus on capturing new demand as it arises

A Blue Ocean strategy means proactively identifying emerging trends and demands in the healthcare landscape.

Pharmacies can leverage data analytics, market research, and collaborations with healthcare professionals to anticipate and address these evolving patient needs.

For instance, as the population ages, there may be a growing demand for geriatric care and medication management services. By staying ahead of the curve and aligning their offerings with emerging demands, pharmacies can tap into new markets and attract a broader customer base.

Another example is leveraging Artificial Intelligence to capture useful patient insights to deliver personalized, efficient and proactive care.

By harnessing the power of AI algorithms, pharmacies can analyze vast amounts of patient data, identify patterns, and derive meaningful insights. These insights can help pharmacies anticipate emerging healthcare trends and demands, enabling them to proactively tailor their services to address those needs.

For example, AI can identify specific patient populations that could benefit from specialized medication management programs or predict medication adherence challenges among certain groups. Armed with this knowledge, pharmacies can develop targeted interventions and capture new demand by addressing those emerging needs.

4. Leveraging every skill that a pharmacist has to optimize medicines

Arguably, pharmacists, in the current state of the healthcare system, only utilize 50-70% of the knowledge they graduate with. And arguably also, this knowledge declines as it is underutilized in the span of their career (which leads to professional dissatisfaction!).

Pharmacists possess a wealth of knowledge and expertise beyond medication dispensing.

A Blue Ocean strategy would fully utilize these skills by expanding the scope of pharmacists' responsibilities. This could involve integrating advanced clinical services, such as medication therapy management, precision prescribing and chronic disease management, into pharmacy practice as a norm in all practice settings. By empowering pharmacists to apply their expertise, pharmacies can deliver more comprehensive, patient-centric care, ultimately improving health outcomes.

5. Focusing on workforce retention and well-being

The success of a Blue Oceans strategy hinges on the well-being and engagement of the pharmacy workforce.

In a Blue Ocean strategy, pharmacies prioritize the development and satisfaction of their employees. This can be achieved by:

• offering continuing education and professional growth opportunities

• fostering positive work environments

• recognizing early on when workload is increasing and addressing stress early

• providing opportunities to work remotely where possible

• providing competitive compensation and benefits

• educating pharmacists about the various career pathways a PharmD can lead to

• education about value-based healthcare models

By investing in their workforce, pharmacies can attract and retain pharmacists, ensuring we have a motivated and skilled pharmacist workforce.

In Conclusion...

A Blue Ocean strategy for the pharmacy industry entails embracing a futuristic mindset and exploring untapped opportunities. By focusing on value-based healthcare, capturing new demand, optimizing pharmacists' skills, and prioritizing workforce well-being, pharmacies can transform the way healthcare is delivered, bringing significant benefits to patients, practitioners, and the industry as a whole.

-Katrina

P.S. If you're interested in my writing and want to:

• explore opportunities for collaboration

• navigate a new career pathway

• establish a new service

Then DM me!

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