Here is what I want in a grocery store like Hy-Vee:
My point is that if every vendor has to bear the cost, then it is a cost that gets passed on to the consumer.
When it is all insurance plans with Co-pays and specific reimbursements the answer is no, the issue is the reimbursements are going lower and fees are increasing.
Yeah, somebody probably says things like that - but I gotta believe that selling groceries is dam near rocket science. There are millions and millions of possible products that can go into a grocery store and they need to figure out which ones. Store locations, size, configuration, staffing, etc. Then the pricing (regular and sale pricing), resupply and lead times, managing 93k employees, etc. Then on top of that, it's an industry with pretty slim margins on most products due to competition. They have to determine what their customers want and try to put on a competitive price but still have a decent margin.
Not to mention each one has a
Almost anything is complex if you start at zero. HyVee has been around for decades. The industry did not evolve at some crazy pace. HyVee F’ed themselves.
Again, not my gig, but why wouldn't the out of pocket expense for the consumer just be raised? If the co-pay is fixed, and what the pharmacies will be paid by insurers is fixed, and if the consumer demand is fixed in that they need to get the drugs somewhere, then the consumer should pay an increased cost for that drug, right?
Let's see Medicaid is a fixed price usually below cost. There is nothing to pass on there. Medicare plans are hit and miss, some pay good premiums others do not. Cash pay although a small market is your most profitable business on a margin stand point, and then they do fairly well on Employee plans but those margins and contracts have gotten much tighter over the years. Generally money is made on the supplements, vitamens and misc. health products.
HA HyVee thinking they can compete with Publix down south is literally laughable…
This is a dumb question but why accept Medicaid at a below cost fixed price unless you are using that as a loss leader as a marketing tool for other sales?
It's not fixed. These fees are collected much later and the amounts are not known. There's just no way to collect it when you dong know how much it's going to be. I think you are misunderstanding how these fees are collected. They are not fixed in any way.
With what money and what new debt? Sell the corporate building to buy another one? Maybe they can make some margins there but likely not much. I stated before in 2019 into 2020 they had effectively put themselves up for sale. Then the pandemic hit and they had a lot of inventory and anyplace that had inventory was going to sell it- they did really well during that time frame like most grocery stores. However the issues have continued to mount up. They continue to pay an exorbitant amount on advertising, they are wasting money on a racing team. They are trying to sell merchandise a grocery shouldn't. They got a reprieve in 2020 and didn't learn their lessons and change. If anything they continue to go pedal to the metal spending money.
I have been to Publix and Hy-Vee. They are quite comparable, sans the new silly endeavors of Hy-Vee in the past few years. About the only discernable difference is that Publix's gourment deli meat is Boar's Head, while Hy-Vee's is Dilousso.
LOL. Correct. ^^
They should move back to Chariton. Much lower costs of living there and the city would welcome them back with open arms. Twould do wonders for Lucas County!
Ummmm -- I think I know what I am talking about. Those fees and contracts are signed contracts. You know when you sign them what the fees are going to be. Now I do know some of the fees tripled this year from just 2 years ago. This is for an independent pharmacy. Everything is different whether you are considered a rural pharmacy, a metro pharmacy, independent or chain and how much competition is in the town. I have a better understanding than most regarding the mechanics.
They should move back to Chariton. Much lower costs of living there and the city would welcome them back with open arms. Twould do wonders for Lucas County.
Because you had always offered it and it use to be a decent margin business when the state ran it. Once the MCO's business took over that has gone down. Now for most pharmacies its a small enough percentage of overall sales it doesn't matter. However in my county that is one of the top medicaid populations, it can be an extremely large amount of your payers.
They tried some and it was half baked at best. Des Moines metro had it. Cheap / meh ingredients and recipes but priced similar to the online ones. The curb side stuff they’ve done has been for the MarketGrill now Wahlburgers. Which again is priced around the same as other chain restaurants and the food is/was ok. Zero driving factors to make someone want to go there over their old reliable restaurant
I think that would be extremely difficult. How would you know how much to charge. How would you suddenly jack up prices on seniors and not lose business. I get what you're saying as far as passing the costs along. Especially if every pharmacy had to do it. I just don't think they can know enough about how much they need to cover. I don't know though. I don't work in that part of the business. Like I said in my first post in this thread, I am just learning about these fees.
ate there once. It was awful for what you paid for it.
I wonder. Granted, I'm in the CR area, not a big market, but I haven't seen anything outlandish at the local Hy-Vees. Maybe you're right - they got away from their market and lost money. But if that were true they could simply eliminate those activities to cut their losses.
Good post - and remember, Hy Vee is 100% employee owned. So, those chuckling at Hy Vee's misfortunes should consider that as well.
