PHARMACO

Strategies for Future Growth

29 October 2009

Minerva Consulting

KEY ISSUES

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KEY RECOMMENDATIONS

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1. CENTRALIZED CALL CENTER

* Calculated based on preliminary proposal for centralized calls obtained from the CIO ** Such as refill orders, script status, etc. Operator cost estimated to be $10 an hour.

Key Metric Current With Call CentreSavings

(minutes)Pharmacist Phone Time/Day (mins) 270.0 13.5 256.5

Technician Phone Time/Day (mins) 330.0 56.1 273.9

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1. CENTRALIZED CALL CENTER – IMPACT

* Based on call volume in a typical store, replaced with 535 call center teams handling 1,020 calls per team per day.

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2. MIGRATE REFILLS FROM STORE TO MAIL ORDER

* 25 Mill Rxs/Yr = 17 Rx/day/store

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2. MIGRATE REFILLS TO MAIL ORDER – IMPACT

* 25 Mill Rxs/Yr = 17 Rx/day/store

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3. FOCUS ON MAIL ORDER GROWTH

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MAIL ORDER GROWTH BUSINESS PROCESS

Installing a business process in the retail store to fulfil Rx through mail order will result in

Full utilization of mail orderReduction of mail order CTF by 30%Reduction in instore RX dispensing by

Using retail to drive mail order will could result in amail order business of over 30% of RX

Delivering the mail order business will require an on-line component to compete with similar companies

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NEXT STEPS AND FURTHER RECOMMENDATIONS