Texas County Memorial Hospital board members have unanimously agreed to purchase Hutcheson Pharmacy in Houston, the hospital announced today. The decision was made following a review and business analysis of the pharmacy by an independent firm from Texas.
“The dynamics of healthcare today lead all organizations, especially small, rural hospitals like TCMH, to look at all potential revenue sources and service lines,” said Wes Murray, chief executive officer at TCMH.
Steve and Kathy Hutcheson, owners of Hutcheson Pharmacy, approached TCMH about purchasing the pharmacy in the spring of 2012.
“We believed it would be a good relationship for the local hospital to have a retail pharmacy,” Steve Hutcheson said, “and we believe that it will make our position in the community much stronger.”
The Hutchesons began the pharmacy in 1975. It is the only pharmacy in Houston that remains locally owned.
“The business analysis showed that if Hutcheson Pharmacy continued to operate without any changes, it would pay for itself within five years,” Murray said.
TCMH has only purchased the retail pharmacy business. The county hospital did not purchase any real estate with the business, and they will lease the current pharmacy space from the Hutchesons.
Murray explained that the independent business analysis did not take into consideration the 340B contract pharmacy program which Hutcheson Pharmacy participates in.
The 340B contract pharmacy program provides a potential drug discount for TCMH outpatients that qualify at a participating pharmacy. Local pharmacies contract through the program to provide pharmaceuticals to patients of TCMH clinics or patients at the TCMH emergency department, excluding patients with Medicaid.
Murray explained that the 340B pharmacy program “could accelerate” the revenue stream from the pharmacy.
Hutcheson also believes that the 340B program will benefit current and future patients and customers of Hutcheson Pharmacy.
“The 340B program has made our pharmacy stronger, and it allows us to better serve the public and to help save a lot of people a lot of money,” Hutcheson said.
TCMH already operates an in-house pharmacy employing two pharmacists and several staff members which provide pharmaceuticals to TCMH inpatients. Steve Hutcheson will continue to work at the pharmacy. He and the staff currently employed at the pharmacy will become employees of the hospital.
“Our employees are excited and enthusiastic about becoming employees of TCMH,” Hutcheson said.
Hutcheson explained that current patients and customers of the pharmacy will not notice any major changes in the services of the pharmacy.
“Our relationship with our patients and customers will remain the same,” Hutcheson said.