goodrx pharmacy business plan

How Does GoodRx Make Money? Analyzing Its Business Model

Executive Summary:

GoodRx is an online platform, comprised of an app and a website, which allows users to compare drug prices at over 70,000 in the United States. Coupons offered by GoodRx then allow users to save money on their prescriptions.

GoodRx makes money via fees paid on coupon redemptions, a monthly subscription fee, online telehealth services, as well as advertising on its platform.

Founded in 2011 and headquartered in Santa Monica, GoodRx has grown to become one of the biggest online players in the healthcare industry. It ultimately went public in 2020.

What Is GoodRx?

GoodRx is a platform that allows users to compare prescription drug prices and find coupons at participating pharmacies in the United States.

The firm works together with over 70,000 pharmacies across the United States, including Walmart, Kroger, CVS Pharmacy, Walgreens, and many more.

To get started, users either visit GoodRx’s website or download one of its mobile apps (available on Android and iOS devices).

They then enter the name of the drug they want to compare prices for. Next, whenever applicable, they can use a discount coupon which they show to their pharmacist.

Notably, GoodRx can not be used in conjunction with your insurance. The company compares cash prices which the user must bear. As such, the service is mostly used when insurance does not (or only partially) cover the medication.

Apart from comparing drug prices, users can also interact with the company in a variety of other ways. For instance, it offers monthly membership programs to get lower drug prices (called GoodRx Gold ), a telemedicine service ( HeyDoctor by GoodRx ), or a marketplace to find testing labs. 

On top of that, GoodRx offers extensive educational material on all things related to medication and overall wellbeing.

A Short History Of GoodRx

GoodRx, headquartered in Santa Monica, California, was founded in 2011 by Doug Hirsch, Trevor Bezdek (who both act as co-CEOs), and Scott Marlette.

Bezdek, a Biological Sciences and Computer Science graduate out of Stanford, launched his first company in 1999 right after graduating college. He founded Biowire, which developed information tools for scientific researchers.

The business never really took off. Nevertheless, it taught him some early lessons in entrepreneurship, which he used at the start of his second company.

That business was called Tryarc, a consultancy firm delivering technology strategy and implementation services aimed at healthcare and media companies.

The business grew to become one of the largest IT service providers in California and was ultimately acquired by NTT Data in 2007.

Hirsch and Marlette, on the other hand, met at Facebook where they held product and engineering-related roles, respectively. Hirsch had made his mark in the world of tech before, working in leading managerial roles at Yahoo from 1996 onwards.

He joined Facebook as their VP of Product where he helped co-create Facebook Photos and ultimately became acquainted with Marlette, who worked as an engineer at the time.

While Marlette stayed on for another 5 years, Hirsch terminated his employment after half a year to launch DailyStrength, a health-focused social network. DailyStrength raised a total of $5 million in funding and, in November 2008, was ultimately acquired by HSW International.

Hirsch stayed on at HSW to accompany the migration and run DailyStrength as a subsidiary of HSW’s business. But by the end of 2009, he decided to leave HSW and work on another healthcare-related business. If you haven’t guessed it by now, that business would ultimately be known as GoodRx.

Right around the same time, Hirsch turned 40 years of age. A few years prior, he had created a list of things he always wanted to do in life, and with money from his exit, he finally had the financial means to pursue it.

But first, he booked a series of doctor appointments to make sure he was up for the challenge from a health standpoint. His dermatologist gave him a prescription, which he took to the next best pharmacy.

To his shock, the pharmacists presented him with a bill of $612, which made Hirsch seek out another pharmacy. And another one, and another one. The pharmacist at CVS, where he concluded his medical trip, quoted him $416, which made him walk out the door immediately.

Much to his surprise, the pharmacist came running after Hirsch and told him he could have the drugs for $300. Hirsch, despite his previous endeavors in the world of healthcare, started questioning why there was such a steep discrepancy in pricing – and whether other pharmacies were willing to negotiate prices to lure in more customers.

He spent the next few months talking to (medical) experts and scouting the internet on how drug prices exactly come to be. What he discovered was a lack of transparency and huge discrepancies in the way drugs are priced.

The pricing process roughly works as follows: first, the manufacturer (in this case a pharma company like Johnson & Johnson) sets a list price (also known as the wholesale acquisition cost (WAC)). This is essentially the official price of the medication.

The manufacturer then sells the drug to a wholesaler, normally at a discount of 2 percent to 5 percent to the WAC. Next, the wholesaler sets a so-called average wholesale price (AWP), which is the listing price plus a markup. The markup is priced at around 20 percent.

That’s where the pharmacy comes in. It buys the drug for the wholesale price minus a small discount (to give the wholesaler a small profit). From there, the pharmacy determines the usual and customary price (U&C), which is the full retail price for the drug (the one customers end up paying).

The U&C price can vary extensively, though, depending on what price the pharmacy ultimately deems appropriate. The patient then has a number of ways in which he can pay for the drug: a cash price, a discounted price (offered via coupons), a co-pay, a co-insurance pay, or via a coupon offered by the manufacturer.

Additionally, pharmacies may work together with so-called pharmacy benefit managers (PBM) to negotiate prices for customers with and without insurance. The payment method can therefore further contribute to fluctuations in pricing.

Hirsch convinced Bezdek and Marlette to join him in starting GoodRx. They launched the business in September 2011 at the Health 2.0 Conference in San Francisco after over a year of full-time work.

When GoodRx launched, it was already able to list over 1 million drug prices while covering close to 2,000 different drugs. Soon after, the team introduced an iPhone app that replicated its website experience.

Customers weren’t the only ones immediately attracted by its business model. In February 2012, GoodRx raised a $1 million seed funding round led by top venture capital firms, including Founders Fund, GRP Partners, Highland Capital, SV Angel, and many more.

Over the coming years, GoodRx continued to grow quietly while adding more and more users to its platform. In 2016, it merged with Iodine, a company that offered a tool for quality assessment and information on medications which launched in 2014.

By 2018, GoodRx finally hit unicorn status when it $748.8 million from private equity investor Silver Lake, valuing the business at a total of $2.8 billion. Prior to the funding, GoodRx actually held acquisition talks with a few interested buyers (such as McKesson) at a price point of $3 billion. These deals ultimately never came to fruition.

A year later, in 2019, GoodRx passed a significant mark in the company’s history: $10 billion total saved on prescription medication costs for its customers. By that point, GoodRx’s business was mature enough to only help its customers save money but allow the company to branch out into other industries.

In September 2019, it acquired HeyDoctor, a provider of online medical services, for an undisclosed sum. The acquisition allowed GoodRx to offer its customers remote health consultations for as low as $20 (via GoodRx Care). It launched a telehealth and COVID-19 testing marketplace just a few months after.

And as it appears, helping people to save on prescriptions not only contributes to your karma but makes up for good business as well. As a result of GoodRx’s ongoing expansion efforts, the firm was finally able to go public in September 2020.

The IPO netted Hirsch, Bezdek, and Marlette more than 1$ billion. On top of that, GoodRx’s S-1 filing revealed that the company had been profitable for almost 3 years – a rare occurrence among modern-day tech companies.

Despite the firm’s overwhelmingly positive profile, it also faced at least one instance of scrutiny in the past. In March 2020, an investigation by the Consumer Report revealed that GoodRx was sharing sensitive user data with over 20 third-party companies, including privacy luminaries like Google and Facebook.

To its credit, GoodRx announced that it would immediately stop sharing any form of data and work on finding ways to optimize user encryption.

Recently, GoodRx has been heavily focused on expanding its business amidst news that Amazon is expanding its healthcare offerings. To that extent, GoodRx acquired HealthiNation (a site making informational videos on health topics) and RxSaver (a similar service to GoodRx) for $75 million and $50 million, respectively.

The Covid-19 pandemic also affected the business to some degree as people were hesitant to step outside and go to a pharmacy.

Despite the increase in competition from Amazon and problems associated with the novel coronavirus, GoodRx continued to grow at a healthy rate. In September 2021, it launched GoodRx Health, a digital resource for all things healthcare. To realize that vision, the company announced that it had hired a 50-person editorial team in an effort to compete against platforms like WebMD or Healthline.

Today, over 20 million consumers access the firm’s app and website every month. GoodRx has helped them to save over $20 billion on prescriptions over the course of the company’s lifetime. Moreover, close to 300 people are now employed by the company.

How Does GoodRx Make Money?

The business model of GoodRx is centered around using its coupon business as an onramp to cross-sell other services.

Prescription margins are already razor thin, so it can be assumed that the money GoodRx makes from those coupons on a per-redemption basis is not very high (although it still makes up the majority of its revenue).

However, by providing a helpful and cheap service to consumers, it potentially earns enough goodwill and trust to sell customers related (and higher margin) services such as premium subscriptions or telehealth.

Furthermore, because of its highly targeted audience as well as the data it is able to collect, GoodRx can also work together with other drug manufacturers for advertising purposes.

Without further ado, let’s, therefore, take a closer look at each of GoodRx’s revenue streams in the section below.

The vast majority of GoodRx’s revenue comes from the coupons it offers to patients, which in turn allow them to save money on prescriptions.

GoodRx offers over 150 billion different prescription pricing data points on its comparison platform. Furthermore, coupon codes are accepted at more than 70,000 pharmacies across the United States.

GoodRx makes money via the fees it collects whenever a customer uses that code to fill a prescription.

The company then gets paid by its partners, which are PBMs primarily. The fees can either be a percentage of the fees that the partners earn or a fixed (previously agreed upon) payment per transaction.

On the other hand, competing services such as SingleCare do not work together with PBMs. Instead, they deal directly with the pharmacy (such as CVS or Walmart) who then compensates them for every redemption.

Notably, GoodRx also generates revenue whenever a customer refills their prescription. When a customer uses their coupon, the code is saved to the customer’s profile at the pharmacy. From there onwards, the coupon normally applies to all future refills.

According to the firm’s S-1 filing , more than 90 percent of its annual revenue can be attributed to coupon redemptions.

GoodRx Gold

In 2017, GoodRx launched a premium subscription offering called GoodRx Gold. It is a monthly membership program that provides discounts on over 1,000 prescription drugs and healthcare services.

GoodRx Gold can be used at thousands of pharmacies across the United States, including partners like Safeway, Kroger, Albertsons, or CVS.

GoodRx generates revenue via the 2 plans it offers. Individuals can subscribe at $5.99 per month while you can insure yourself and up to for other family members for a total of $9.99 a month.

The company claims that GoodRx Gold members save an average of $106 per prescription. Just like any other modern-day subscription, Gold can be canceled at any time and be tested for free for the first 30 days.

As previously stated, GoodRx has built various telehealth-related products that include services such as general health checks or Covid-19 testing.

It offers both its own medical checks (via HeyDoctor by GoodRx) as well as a comparison platform for third-party medical services.

HeyDoctor by GoodRx allows you to connect with doctors that are vetted by GoodRx and who work together directly with the company to provide various medical services.

These consultations can cover anything from hair loss or acne to treating anxiety and depression. GoodRx generates revenue from the fees that patients pay for the consultation. Visits start at $19 and do not require insurance.

Second, the company operates an online marketplace in which medical professionals (who are not employed by GoodRx) can offer their services. Services, again, are wide-ranging and practically cover anything that can be attended to remotely.

With the online marketplace, GoodRx makes money via commissions. It collects a fee whenever it helps a third-party medical provider to get a new patient.

Advertising

About 20 percent of all searches on the GoodRx platform are aimed at brand medications (which is a drug protected by a trademark).

Due to their limited capacity, these medications tend to be very expensive. Furthermore, insurance coverage may not always be available.

To make them more affordable, pharmaceutical companies have developed various solutions such as co-pay cards or patient assistance programs, amongst others.

GoodRx then works together with these pharma companies to advertise these affordability solutions to its users.

The company, in most cases, receives a fixed fee in exchange for increased exposure on its platform. These advertising campaigns last for a limited period of time, depending on what has been stated in the agreement.

GoodRx Funding, Valuation & Revenue

According to Crunchbase, GoodRx has raised a total of $910.3 million across 5 rounds of equity funding.  The company raised another $1.1 billion when it went public in September 2020.

Notable investors into the company include Silver Lake, Francisco Partners, Founders Fund, as well as Spectrum Equity.

GoodRx was valued at $12.7 billion when it IPO’d in 2020. As of today, its valuation largely remains around the same threshold.

GoodRx generated $550.7 million in revenue for the fiscal year 2020, up 42 percent from the year prior ($388.2 million).

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Last Updated on December 27, 2022 by Viktor Hendelmann

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Analyzing GoodRx’s Business Model

US citizens usually pay two to three times more than other nations for prescription drugs. This makes it incredibly difficult for them to afford medication, with around 18 million adults unable to afford doctor-prescribed medicines.

Subsequently, several US residents have resorted to skipping medicines or cutting their dosage in half to save medicine and, by extension, money. So are there any less risky options to save money on drugs?

There are a few financial assistance programs, but third-party websites like GoodRx are becoming increasingly popular among US citizens to cost-compare medicines and acquire coupons to save up to 80% on drugs at local pharmacies.

Table of Contents

What is GoodRx?

Founded in 2011 by Doug Hirsch, Trevor Bezdek, and Scott Marlette, GoodRx is a healthcare company that aims to address the complexity, affordability, and transparency challenges faced by the US healthcare ecosystem.

It offers a platform where Americans can compare drug prices, which vary by pharmacy, to find the lowest pharmacy cost and save up to 80% on drug costs. Moreover, Americans can obtain free coupons to pay less than the retail amount to fill their prescriptions.

GoodRx also provides virtual healthcare consultations with certified US practitioners at a discount. Millions of Americans use GoodRx monthly, but what is GoodRx’s customer segmentation?

GoodRx Customer Segmentation

Primarily, GoodRx caters to three types of customer segments :

• Individual consumers: The easy-to-use online platform and mobile app make it highly convenient for individuals to compare drug prices by pharmacies and pick the one with the lowest cost. GoodRx’s free coupons are an excellent tool for individuals to save the most they can on medicines. Their telehealth services help individuals get treated by certified practitioners and get lab tests done that they might’ve put off due to long wait times for in-person visits and affordability issues.
• Healthcare professionals: Doctors, physicians, and other healthcare professionals are empowered to help patients through the platform. Pricing details and GoodRx codes are added directly to the EHR (Electronic Health Record) systems to help the practitioners provide a customer-friendly service.
• Healthcare companies: Pharmacies , PBMs (pharmacy benefit managers), pharmaceutical manufacturers, and telehealth providers use GoodRx to access its customer base and provide affordable solutions.

GoodRx is a leading healthcare platform in the US, but why do Americans trust GoodRx to safeguard their health? Let’s find out.

GoodRx’s Value Propositions

GoodRx’s host of solutions includes:

1. Drug savings

The most popular value proposition of the bunch, drug savings, is GoodRx’s core service. It’s an easy process through which consumers can compare the drug prices of their nearby pharmacies, pick the one offering the lowest rates, and acquire a free coupon to maximize their savings.

2. Telehealth- Online Consultations and Medical Examinations

GoodRx’s online consultations service aims to schedule same-day virtual healthcare appointments that are easy on the pocket. It’s accessible via phone, video, and text. All consumers need to do is answer a few personal questions and consult a licensed healthcare provider to receive their prescriptions.

The platform also lets individuals find blood test service centers in their neighborhoods without them having to spend thousands of dollars. GoodRx offers at-home lab tests on its platform too.

3. Subscription offerings

GoodRx Gold is a monthly healthcare membership offering even more savings on individual and family plans. Consumers can access over 1,000 prescriptions for less than $10, and telehealth services start at just $19.

Moreover, they can get the medicines delivered to their home for free, cancel the membership anytime, and even take the 30-day GoodRx Gold trial before committing.

GoodRx also powers Kroger Rx Savings Club’s drug-saving subscription.

Who are the Key Partners of GoodRx?

GoodRx’s partners have helped the company carve a niche in the pharmaceutical industry. Its key partners are:

• Healthcare professionals: GoodRx partners with licensed healthcare practitioners to offer its consumers the best virtual medical services.
• EHR providers: They help GoodRx maintain patient data, including problems, diagnosis, medications, and progress, using EHRs.
• Partner pharmacies: GoodRx partners with pharmacies across the US to offer the best drug prices to its customers.
• Developers: Technology partners ensure that GoodRx runs smoothly without glitches.
• Affiliates: GoodRx partners with brands to provide health benefits to their consumers.

What are GoodRx’s Key Resources?

GoodRx’s key resources include:

• Profitable partnerships with major healthcare providers and pharmacies across the US.
• An intellectual database comprising details about millions of patients in the US.
• Technology and IT infrastructure that delivers a seamless and user-friendly experience.
• Algorithms and AI help the platform compare drug prices by pharmacies quickly.

What are GoodRx Channels?

GoodRx is accessible through its website . Additionally, it has dedicated apps to serve Android and iOS users.

Consumers can use the app or website to save money on drug prices, acquire coupons, and schedule virtual appointments with doctors. They can go through its Health Information page to browse and read articles related to healthcare issues .

GoodRx has an app for healthcare professionals too.

How does GoodRx Maintain Customer Relationships?

GoodRx is easy to use and doesn’t require customers to sign up to compare drug prices and obtain coupons. They only need to add their location details to compare drug prices and avail of coupons.

GoodRx’s social media platforms and online and offline marketing strategies help it connect with its consumers directly.

It encourages customers to use self-service tools like blogs, articles, and guides on the GoodRx Support and Help page. Customers can also chat with the GoodRx customer support team.

What is GoodRx’s Cost Structure?

GoodRx incurred operating expenses of $764.8 million for the fiscal year 2022 . Its cost and operating expenses include the cost of revenue exclusive of depreciation and amortization, product development and technology, general and administrative, and depreciation and amortization expenses.

How Does GoodRx Generate Revenue?

With over 80% repeat transactions and $8 billion gross transaction value, GoodRx is a hit among US citizens. Its revenue for 2022 was $766.6 million.

But how does GoodRx earn revenue if it’s free not only to use but also obtain coupons? Does it earn only from its Gold membership and telehealth services? Not quite .

GoodRx’s revenue streams can be categorized into four sections:

GoodRx earns a good chunk of its revenue from its online consultation services. It charges $49 for its telehealth services without a membership and $19 with a Gold membership.

GoodRx partners with more than 70,000 pharmacies in the US that accept its promo codes. So when an individual uses a coupon to fill their prescription, GoodRx earns a commission or a fixed payment per transaction from PMBs.

Gold subscription revenue

GoodRx’s Gold subscription accounts for a good portion of its revenue. Its individual plan costs $9.99 per month, and the family plan costs $19.99 per month.

Advertising

GoodRx earns revenue from pharmaceutical companies by allowing them to advertise their products on their platform. It also charges a fixed amount from pharmacies to improve platform visibility.

The Bottom Line: GoodRx is Transforming the Pharmaceutical Market in the US

GoodRx is making it easier for US consumers to fill their prescriptions, consult a doctor the same day, and get their blood tests done without breaking the bank. They plan on adding to their list of services in the coming years to make their consumers’ lives easier and help them save more on drugs.

 References & more information

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How does GoodRx work & make money | Business Model

The Covid-19 pandemic has exposed and exacerbated weaknesses, not in one country’s healthcare system but the entire world. Even the most powerful country had to succumb. Yes, I am talking about the United States.

Undoubtedly, the United States has achieved sophistication in developing drugs. Still, the pandemic has revealed shortages in essential equipment and hospital beds, the disproportionate effects of disease on the marginalized, the challenge of prevention rather than cure, the limits of insurance-based models to provide equitable care, and our unacknowledged dependence on the labor of underpaid health care workers.

Additionally, the number of uninsured consumers in the United States has increased recently. As per a  survey by CNBC , 56% of Americans cannot cover an unexpected $1,000 bill with savings.

I won’t go deep into this issue, but clearly, the pandemic has revealed that we took our healthcare lightly. But one company understood this problem long before the pandemic. This company is on a mission to help Americans get healthcare at an affordable price. The company is GoodRx.

GoodRx, founded in 2011, is building a consumer-focused digital healthcare platform to solve the challenges consumers face in understanding, accessing, and affording healthcare. In this story, let’s deep dive into the business model of GoodRx and also understand how GoodRx works and make money.

What is GoodRx? How does GoodRx work?

Let me first explain the challenges with the current American healthcare system:

• Lack of affordability  in healthcare is a contributing reason why 20% to 30% of prescriptions are left at the pharmacy counter.
• Non-adherence  significantly impacts American health: someone dies every four minutes in the United States from not taking their prescribed medication at all or as directed, according to a report in the American Journal of Health-System Pharmacy.
• Even for those who can afford care,  access to physicians is limited . According to a Merritt Hawkins survey, the average wait time for a new patient appointment in the United States was 24 -56 days in 2017. As per GoodRx, an estimated 30% of emergency cases could have been treated in primary or other care settings.

GoodRx was founded to solve the challenges mentioned above that consumers face in understanding, accessing, and affording healthcare. GoodRx started with a price comparison tool for prescriptions, offering consumers free access to lower prices on their medication.

This price comparison platform processes over 230 billion pricing data points daily and integrates that data into a user-friendly interface that provides consumers with curated, geographically relevant prescription pricing and access to negotiated prices through GoodRx codes that can be used to save money on prescriptions across the United States.

GoodRx has affordable solutions for generic and brand medications, medical consultations, and lab tests via telehealth offerings and other healthcare and wellness-related content. Hence, providing significant savings to consumers and driving greater medication adherence, faster treatment, and better patient outcomes benefit the broader healthcare ecosystem. Let’s understand from this infographic and video how does GoodRx work.

To use GoodRx, all someone has to do is go to the home page, type in the name of the drug, and click the “Find the Lowest Price” button (the company will also help spell the name of the drug since the terms can be confusing). In the US, the price can vary a lot from pharmacy to pharmacy. I mean a lot.

It will then present coupons that the user can give to their pharmacist so they can pull up the lowest discount available. These coupons are applicable at over 70,000 pharmacies in the US.

What is the business model of GoodRx? How does GoodRx business work? How does GoodRx make money?

GoodRx’s business model works on achieving better outcomes by increasing medication adherence, providing fast access to preventative care to reduce the strain on hospitals and emergency departments, improving access to affordable prescriptions that otherwise may not have been filled, and enhancing consumer satisfaction and engagement.

Value proposition

Consumers or PBM : Different mobile-first offerings by GoodRx are aimed to provide consumers with more accessible and affordable healthcare. The benefits of each offering to consumers by GoodRx and how they work are described in the offerings section.

The value consumers ascribe to GoodRx is demonstrated by its high NPS, which exceeds that of many other well-regarded consumer-centric brands. As of December 2021, GoodRx had 6.4 Mn Monthly active Users, who till June ’20 had saved $20 bn because of GoodRx’s tech-enabled platform.

View this post on Instagram A post shared by GoodRx (@goodrx)

Healthcare professionals : GoodRx empowers healthcare professionals to improve patient outcomes by encouraging medication adherence and providing a consumer-friendly service.

Using the GoodRx price comparison platform, healthcare professionals can directly suggest prices to consumers when prescribing, thus bringing more transparency. As of 2020, over 2 million prescribers had a patient who has used GoodRx.

Healthcare Companies : PBMs, pharmacies, pharmaceutical manufacturers, and telehealth providers use GoodRx’s platform to reach and provide affordability solutions to consumers.

GoodRx works with pharmaceutical manufacturers to advertise, integrate and enhance consumer awareness and uptake of their various savings solutions for brand medications, increasing the likelihood that consumers will start or continue to take their prescribed medication.

Lemonade Business Model: To Become the most loved insurance company

GoodRx’s business model works through the following offerings for customers, healthcare professionals, and companies.

Prescription Offering : GoodRx has over 230 billion price points to compare. Consumers can choose the lowest price from a selection of nearby pharmacies, save a GoodRx code to their mobile device for free, and present that code at their pharmacy to access that low price.

The average discount on the list price on GoodRx is 70%. PBMs, pay GoodRx as compensation for directing the consumer to that PBM’s pricing and the pharmacy.

Subscription Offering : GoodRx has two subscription programs: GoodRx Gold and Kroger Rx Savings Club Powered by GoodRx. Both are drug savings programs where consumers pay a membership fee to join.

These programs give consumers access to drugs at discounted prices at popular pharmacies— but with better prices and more convenience. The company has  over a million subscribers  in both these programs.

Pharmaceutical Manufacturer Solutions Offering : Pharma manufacturers use the GoodRx platform for advertising their affordability solutions such as co-pay cards, patient assistance programs, care portals, and other savings options so that consumers can access their medications.

Telehealth Offerings : This offering is designed to meet the needs of our consumers who seek rapid and affordable access to quality care. GoodRx has in-house healthcare providers who suggest to customers through messaging, video chat, and electronic prescriptions at a fee.

How does GoodRx make money?

GoodRx is free for consumers and does not require creating an account to search for prices and receive discounts. Yet it made $745 Mn in 2021, a 33% growth from 2020. How?

GoodRx primarily makes money through three revenue streams: Prescription transactions (usage of coupons), subscriptions, and others (payments from pharma companies and advertisements).

Prescription transactions revenue : Consists primarily of revenue generated from  Pharmacy benefit managers (PBM)  or customers when a prescription is filled with a GoodRx code provided through the GoodRx platform. It’s free to create a coupon at GoodRx.

GoodRx earns revenue upon the initial usage of the GoodRx code when the consumer realizes savings compared to the list price at the pharmacy. It continues to earn income when the consumer returns to the pharmacy for refills and new prescriptions.

It’s similar to using a coupon at a grocery store. When a customer uses a GoodRx coupon, PBM will show the price to charge and later split it with GoodRx. This revenue stream contributed to 80% of GoodRx revenue in 2021.

Subscription revenue : Consists of income from our Gold and Kroger Savings subscription offerings. This revenue stream contributed to 8% of GoodRx revenue in 2021.

Other revenue : Consists primarily of payment from pharma manufacturers and other customers for advertising. The stream also includes income from telehealth offerings that allow consumers to access healthcare professionals online. This revenue stream contributed to 12% of GoodRx revenue in 2021.

GoodRx believes the market opportunity is substantial and estimates the total addressable market, or TAM, for its current solutions to be approximately $800 billion.

This includes a $524 billion prescription opportunity, including prescriptions that are written but not filled, a $30 billion pharmaceutical manufacturer solutions opportunity, and a $250 billion telehealth opportunity.

AI in Healthcare: How much is too much!

With more and more focus of citizens and government on the healthcare system due to pandemics and the availability of such large market size, the sky is the limit for GoodRx’s business model to grow and make money.

A passionate writer and a business enthusiast having 6 years of industry experience in a variety of industries and functions. I just love telling stories and share my learning. Connect with me on LinkedIn. Let's chat...

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How does GoodRx make money?

By Nikita Sheth   |   Verified by Andrew Boyd   |   Updated Aug. 18, 2023

• How does GoodRx make money if it is free to use?
• Get the lowdown on its business model and revenue generation stream.
• Review GoodRx’s competitors and how the company plans to grow in the future.

GoodRx is a telemedicine platform that aims to provide the most convenient and affordable healthcare possible to its customers regardless of their insurance or income status. The platform facilitates communication between patients and health providers.

You may be wondering how GoodRx makes money if they don’t charge a fee. Find out how it works below.

Coming up next

What does goodrx do, how does goodrx work, future growth engine, competitors.

The original aim of GoodRx was to negotiate lower prescription drug costs by partnering with major prescription drug companies. It later expanded its product portfolio with GoodRx Care, the online portal of GoodRx.

GoodRx currently offers a wide range of healthcare services, including prescription savings, online consultations with doctors, medical examinations, and health information.

Prescription savings

GoodRxhas partnered with over 75,000 pharmacies across the country allows you to save a significant amount of money on prescriptions with their coupon codes. It to help you save up to 80% on prescriptions. The prices of the drugs vary depending on the pharmacy.

Online Consultations

Normally, new patients are required to wait more than 3 weeks for a doctor’s appointment. With GoodRx, you can have same-day consultation sessions with doctors.

Medical Examinations

With GoodRx, you don’t have to spend hundreds of dollars on blood tests. The platform allows you to find tests at a service centre located in your neighborhood. You can also find at-home lab tests on the platform.

GoodRx Gold

GoodRx Gold is subscription-based membership of GoodRx that gives you access to all the above-mentioned services. With GoodRx Gold membership, you can enjoy better healthcare, free prescription deliveries, and prescription medication coupons.

GoodRx is simple, easy, and free to use. Even if you don’t have health insurance, you can use the platform to enjoy better healthcare. If you are looking for a certain medication, all you have to do is go to the website, type in the name of the medicine and you will be given a list of its prices at all nearby GoodRx-partnered pharmacies. Similarly, you can save on prescription by using a GoodRx coupon.

GoodRx makes money by selling healthcare services and providing advertising opportunities. The company primarily generated revenue through subscription fees, referral fees, coupon redemption fee, and advertising fees.

The platform facilitates transactions between third-party healthcare providers and patients and receives commission on each transaction. GoodRx also allows pharmaceutical companies to advertise patented medications on the platform and charges them for each ad campaign.

Here’s an overview of the revenue stream of GoodRx:

GoodRx offers a wide range of paid healthcare services, such as COVID-19 testing, general health screenings, and other types of medical examinations. GoodRx’s HeyDoctor, allows you to connect directly with the doctor. The platform charges $19 for each consultation.

The platform also allows medical professionals to advertise their services in the online market. They charge a commission fee for every ad campaign and transaction.

GoodRx generates most of its revenue from coupons. The platform provides coupons to patients that give them discounts of medications. More than 70,000 pharmacies across the United States accept the promo codes issued by GoodRx. The company receives profit when the code is used by a consumer to fill a prescription.

Most of GoodRx’s partners include pharmacy Benefit Managers (PBMs). GoodRx receives compensation from its partners as a commission-based fee or a fixed payment per transaction.

GoodRx Gold Subscription

GoodRx receives a large portion of its revenue from its premium subscription service. The platform gives coupons for more than 1,000 medications and healthcare services to its premium members.

GoodRx offers two subscription plans: individual membership and family membership. The former costs $5.99 per month and the latter costs $9.99 per month.

Advertising

GoodRx also makes money by allowing pharmaceutical companies to advertise their products on the platform. The company has partnered with many pharmaceuticals to make medications more affordable for consumers. GoodRx charges a fixed amount for improving visibility on the platform.

GoodRx has managed to outperform other online healthcare facilitators because of its prescription price transparency service. It seems that the company intends to maintain the existing business model to expand its customer base.

GoodRx has partnered with different types of companies, such as health education pharmaceuticals, to diversify its products portfolio. They've added an information tool to provide detailed answers to common health-related questions and have publicly stated their intention to keep adding more services to drive consumer savings.

The top competitors of GoodRx include softwares, information providers, and online portals that offer healthcare services.

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How Does GoodRx Make Money? GoodRx Business Model In A Nutshell

GoodRx is a healthcare platform that compares prices on thousands of medications by enabling consumers to get access to discounts. GoodRx makes money either through a fixed fee or commission as consumers complete the prescription transaction to the parter’s website or location. By 2019, GoodRx generated over $388 million, primarily through prescription transactions.

Table of Contents

Origin story

As Doug Hirsch recounts in the S-1 letter to shareholders, as he was still a kid, he got a piece of advice from his parents, that instead of focusing on finding a good job and salary, to focusing on finding good health insurance.

This sort of advice would be strange, if it wasn’t for the fact that is an all American story.

The complexity, opacity, and expansiveness of the healthcare system only became much more vivid as the GoodRx co-founders grew up. Doug Hirsch recounts of a specific experience back in 2010, when with prescription in hand and good health coverage, he still could not find a uniform and affordable prescription.

As he walked across several pharmacies, he realized that the healthcare market was just like any other industry. Prices would change slightly from one place to the other, with the difference though that the system’s complexity and opacity stood on the shoulders of American people who could not afford that.

From there, GoodRx was created. Whether or not the story is apocryphal, this is the story of a company that managed in a few years to become a leading platform that connects several key players in the healthcare space, offering a single, simplified interface to consumers.

While this might seem just a digital platform, in reality, the final interface (shown primarily as a price comparison tool) underlies key partnerships in the healthcare space, from healthcare providers to healthcare professionals and consumers. From this balance, this business model exists.

Mission, vision, and principles

GoodRx mission is to “help Americans get the healthcare they need at a price they can afford.”

This mission has been executed by the company’s digital platform, which goals is “ to solve the challenges that consumers face in understanding, accessing, and affording healthcare. “

From its beginnings as a price comparison tool for prescriptions, the platform expanded to offer several services (from prescriptions to Telehealth, and additional healthcare services).

GoodRx claimed guiding principle is that “of doing well for consumers and the healthcare industry as a whole.”

But how big is GoodRx potential market? How does its business model and distribution work? And how does it make money?

Let’s see.

In its S-1 GoodRx estimates its total addressable market (TAM), in around $800 billion ($524 billion for prescription opportunity, $30 billion in pharmaceutical manufacturer solutions and $250 billion for telehealth).

It’s important to remark that the TAM is a highly speculative number, based on estimates and assumptions of how the market will evolve in the coming years. The TAM is a way for companies to show their potential opportunity in the future.

The assumption of this opportunity is based on GoodRx’s firm belief that consumers (thanks also to the web) have become more informed, and cost-conscious. That is why the market entry strategy that GoodRx used was thorough its price comparison tool. This was the entry point that enabled the company to grow and expand to several other areas and services (the latest move was in 2019 when GoodRx acquired HeyDoctor, the platform that would enable the company to further expand in the telehealth industry).

To understand GoodRx’s opportunity, it’s also important to start from the problems it solves and for whom they get solved.

Value proposition, key customers: the GoodRx three-sided marketplace

The American healthcare system is among the most complex ones, and many US citizens feel the pressure of having a good health insurance coverage if they want to guarantee a good lifestyle for themselves and their family in the long run. Indeed, for one thing, there is a trade off caused by the US healthcare system.

The health-related expenses not only are a continuous worry for most people in the US (unless of course, you have good coverage), many more ignore it altogether as they can’t afford to have it. The complex, expensive, and opaque nature of the healthcare American system has opened up massive opportunities for digital platforms.

As a consumer-facing platform, GoodRx has not only to provide a good service to a large number of potential patients, but it has also to attract healthcare professionals and companies to be present on the platform. This creates a three-sided marketplace with three core players/partners/stakeholders:

• Consumers : they get easy access to the platform to find simpler and more affordable healthcare solutions. In addition, through the telehealth platform, people can access treatments that otherwise they wouldn’t have due to long wait times for in-person visits.
• Healthcare professionals : motivated by the ability to help more patients, to get more exposure for their profession, and perhaps (especially during the COVID pandemic) to offer their diagnosis remotely, they join the GoodRx platforms (HeyDoctor is the telehealth platform).
• And healthcare companies : they can get more exposure on a platform that counts millions of consumers, to offer more affordable solutions.

By balancing out the value propositions for these three players the marketplace tries to build a win-win-win experience for all.

How the GoodRx business model and platform work

GoodRx’s product/service/ platform is divided into four main parts:

• Prescription Offering.
• Subscription Offerings.
• Pharmaceutical Manufacturer Solutions Offering.
• Telehealth Offerings.

Let’s dive into each part of the platform to understand its business model.

Prescriptions

This is where it all started. GoodRx entered the market as a price comparison tool for prescriptions. Over the years, the company developed a proprietary technology, which as of 2020 aggregates over 150 billion prescription data points from many sources.

This data gets curated and presented back to consumers in the form of services on the platform, accessible on its mobile app, or website for free.

This is the GoodRx’s pricing comparison workflow:

• The consumer uses a GoodRx code to purchase a prescription.
• The code gets recorded in the parter’s pharmacy database so that the consumer can purchase subsequently without showing the code again.
• The consumer saves money as a result of the partnership between GoodRx and the pharmacy.
• GoodRx makes money for the initial purchase and those afterward, via the GoodRx code (it earns a % on the sale of the prescription or a fixed fee).
• The consumer on the GoodRx platform is incentivized to repeat purchases, as more discounted are presented and both the pharmacy and GoodRx make money as a result of that.

Where does GoodRx collect that data for its platform? Primarily through pharmacy benefit managers (PBMs), other sources include Pharmacies, Mail Order Pharmacies, Pharmaceutical Manufacturers Patient Assistance Programs, and Medicare.

Subscriptions

By 2017, GoodRx launched its first subscription service, called Gold, and by 2018, it also launched Kroger Savings:

• GoodRx Gold is simply a saving program with a monthly fee of $5.99 for individuals or $9.99 for families (up to five), which gives subscribers access to even lower prices for pharmacies participating in the GoodRx program.
• Kroger Rx Savings Club powered by GoodRx : which is the fruit of the partnership between GoodRx and Kroger that for an annual fee of $36 for individuals or $72 for families (up to six) gives access to lower prescription prices at Kroger pharmacies.

Pharmaceutical Manufacturer Solutions

That includes:

• Co-pay cards,
• Patient assistance programs,
• And other savings options.

GoodRx partners up with pharmaceutical manufacturers to advertise their solutions on the platform, while offering discounts to consumers which are eligible to those.

Telehealth has been among the fastest-growing industries in the healthcare space. Indeed, GoodRx launched in 2019, its Telehealth platform, HeyDoctor, coupled with the GoodRx Telehealth Marketplace, the aim is to attract third-party providers and expand the services offered on the platform.

GoodRx through HeyDoctor and its marketplace has both in-house healthcare providers and third-party providers. This offering well integrates with the prescription services. As consumers browse and find a healthcare professional on the platform, together with the diagnosis also a prescription might be matched:

Technological model

Each tech company has a model that it follows which is built-in into its technology and that also comprises the philosophy of the organization. As a discovery, comparison platform whose goal is to enable variety, information and lower prices on medications, GoodRx follows these “technological principles:”

• Proprietary Pricing Engine that links with multiple sources spanning the healthcare industry, which also collects and normalizes prices from multiple PBMs, it refines them, and it offers as a single user interface. This technological element is the key to GoodRx business model, as it is a consumer-facing interface, which needs to reduce complexity.
• Constant Data Refresh : GoodRx employs predictive models and software programs to adjust the data on the platform in real-time to enable a continuous stream of discounts and offers on the platform.
• Living Database : GoodRx remarks that its database is “living” as its dynamic, and it gets updated and refined continuously. This is another central element to a platform where it’s all about price, variety, and simplicity.
• Artificial Intelligence / Machine Learning: GoodRx integrates algorithms that will learn from the prescribing habits of consumers. For instance, GoodRx’s engine might automatically show the dose of a given medication based on specific parameters.
• Scalability : GoodRx leverages the cloud infrastructure of third-party services like Amazon AWS and Google Cloud Platform to enable its performance as it scales.

Revenue model

By June 2020, GoodRx had over 4.4 million monthly active consumers, 15 million monthly visitors, with the GoodRx app among the most downloaded medical apps.

But how does GoodRx make money?

Prescription revenues (fixed and % based)

Most of the revenues (94% in 2019) come from prescriptions. In short, as consumers on the platform receive discounts, they get a code generated by GoodRx, this code identifies the consumers, which ones finalized the initial purchase and the subsequent ones it generates a commission on the sale for GoodRx.

For any platform, the key success element is to master the repeat transaction. And for GoodRx over 80% of transactions came from repeat prescriptions. The nature of this kind of transaction, where the consumer will either refill the existing prescription or fill a new prescription, makes the earnings of GoodRx stable and growing over time.

Indeed, once the code has been generated for the consumer, as more orders are placed those are traced back to the code, and the commission or fixed fee is paid back to the platform.

To gain some context, fixed fee arrangements generated 15% of GoodRx revenues in 2018, and 7% in 2019, and 2020.

Other revenue streams

Other revenues come from subscription offerings (Gold and Kroger Savings), pharmaceutical manufacturers/affiliates (advertising revenues), and Telehealth offerings. All in the US.

• As a quick note for the advertising revenues. Advertisers (primarily pharmaceutical manufacturers) may purchase advertisements for a fixed fee or on a performance-basis. This advertisement will appear on the company’s website or app. In addition, GoodRx also serves advertisements through the company’s direct mailers. To gain some context, in 2020, a good chunk of the growth in other revenues (from $8.9 million to over $24 million in the first six months of 2019, vs. 2020) was driven by pharmaceutical manufacturers advertising on the platform (a $5.3 million increase).

Cost structure

We’ll look at three key items that make up the cost structure of GoodRx, from the cost of revenues, or what it takes to deliver the service in the first place, to product development (R&D) and sales, marketing and distribution :

• Cost of revenue :  those costs primarily relate to outsourced consumer support, healthcare provider costs for HeyDoctor, personnel costs for consumer support employees, hosting, and cloud costs. Those costs usually grow in proportion with the platform usage.
• Product development and technology: it comprises product development activities, third-party services, and contractors related to product development, information technology, and software-related costs. Therefore, the headcount growth related to engineering for the platform’s continuous development is the main expense.
• Sales and marketing : those comprise mainly the advertising and marketing expenses for consumer acquisition and retention. We’ll see more in detail how the distribution , sales, and marketing models work.

Distribution, Sales and Marketing models

GoodRx uses both paid, organic and viral marketing channels to reach consumers.

Organic channels comprise the traffic generated on the GoodRx website and apps. While viral growth comes from word-of-mouth coming from consumers referring friends and family, healthcare professionals and pharmacists, and press coverage which drives traffic back to the website and apps.

Organic and viral channels work well as they are low-priced marketing channels. GoodRx marketing mix also comprises direct to consumers’ marketing , partnerships, and content marketing .

Direct to Consumer Marketing

Direct to consumers channels comprise:

TV: GoodRx advertises on both traditional linear television as well as through digital streaming.

Paid Search: GoodRx buys advertising primarily through Google and Bing.

Partnerships

• GoodRx provides in-office materials to healthcare professionals so that those professionals can amplify the brand and services available on the platform. In addition, GoodRx built an app (GoodRx Pro) for healthcare professionals to facilitate electronic prescriptions.
• GoodRx also partners up with electronic health record providers (EHRs). Those are key withing the GoodRx workflow, as they are records of patients which comprise medical history, diagnoses, medications, treatment plans, and much more. By integrating pricing from GoodRx to the EHRs prescribing workflows healthcare professionals can provide prices from GoodRx straight at the point of prescription.
• Affiliates:  other partnerships like the one with the exclusive provider of prescription pricing to the American Automobile Association membership base are also part of the mix.

Content Development and Marketing

Content is an essential part of the platform and a website that brings in millions of organic visits per month. That is why the platform produces a continuous stream of content.

Examples of marketing funnels and key entry points for GoodRx distribution

Below are a few examples of how consumers get to know the GoodRx platform:

• Word of Mouth : consumers’ referral is among the most important acquisiton channels for GoodRx. Consumers might invite other family members and friends, attracted by discounts on prescriptions.
• Physician:  in this workflow, once the consumer gets checked by the physician, if the physician determines that a medication is needed, it will check the pricing for the patient in the records (EHR) where GoodRx integrates its pricing. By finding more reasonable prices for the patient, that is how the connection is created. The patient will have the GoodRx code, which will be used to purchase also subsequent medications.
• HeyDoctor Telehealth Consultation: once a consumer completes the consultation through the HeyDoctor platform if needed, lab tests can be booked through one of the partners of the platform, and a prescription, completed through the GoodRx platform.
• GoodRx Marketing: GoodRx online ad, TV commercial visits the app or the website to complete the transaction and save money on prescriptions. Over several refills, GoodRx will prompt consumers to subscribe to one of the platform’s plans.

Key takeaways

• GoodRx is a digital platform focused on offering price comparisons, and discounts for prescriptions. It also offers Telehealth consultations.
• GoodRx partners up with physicians and healthcare companies to integrate its pricing. Once consumers can find GoodRx’s pricing comparisons, it gets easier for the platform to have them become loyal and repeat customers. Most of GoodRx’s revenues come from prescriptions’ transactions.
• GoodRx also offers subscription plans (Gold and Kroger) which have become an essential part of the GoodRx offerings as they unlock additional savings and facilitate repeat transactions.
• GoodRx also monetizes through advertising on the platform primarily driven by pharmaceutical manufacturers placements or performance-based campaigns.
• Some of the key channels that drive GoodRx growth are word-of-mouth, partnerships, paid, and direct advertising.

Key Highlights

• Origin Story : GoodRx was founded with the goal of helping Americans access affordable healthcare. The co-founders realized the complexity and opacity of the healthcare system, leading to the creation of a platform that provides price comparisons and discounts for medications.
• Mission and Vision : GoodRx’s mission is to help Americans access healthcare they can afford. Their digital platform aims to solve challenges related to understanding, accessing, and affording healthcare services.
• Market Opportunity : GoodRx estimates its Total Addressable Market (TAM) to be around $800 billion, covering prescriptions, pharmaceutical solutions, and telehealth. The TAM is based on the belief that informed and cost-conscious consumers will seek more affordable healthcare solutions.
• Value Proposition : GoodRx operates a three-sided marketplace involving consumers, healthcare professionals, and healthcare companies. Consumers access affordable healthcare options, healthcare professionals gain exposure and can offer remote services, and companies get exposure to a wide consumer base.
• Business Model : GoodRx’s platform is divided into four main parts: Prescription Offering, Subscription Offerings (e.g., Gold, Kroger Savings), Pharmaceutical Manufacturer Solutions Offering (e.g., co-pay cards), and Telehealth Offerings (HeyDoctor). They make money through prescription transactions, subscription fees, advertising from pharmaceutical manufacturers, and telehealth services.
• Technology and Data : GoodRx employs a proprietary pricing engine that aggregates and normalizes prescription data from various sources. It uses AI and machine learning to enhance user experience and prediction models. The platform constantly updates and refines its data to provide accurate and real-time information.
• Revenue Model : The majority of GoodRx’s revenue comes from prescription transactions, where they earn a commission or a fixed fee for connecting consumers with discounted prescriptions. They also generate revenue from subscription plans, advertising partnerships with pharmaceutical manufacturers, and telehealth services.
• Cost Structure : GoodRx’s cost structure includes expenses related to delivering services (outsourced support, provider costs), product development and technology (engineering and software costs), and sales and marketing (consumer acquisition and retention efforts).
• Distribution and Marketing : GoodRx uses a mix of organic, viral, and paid marketing channels. These include TV commercials, paid search, partnerships with healthcare professionals and providers, and direct-to-consumer marketing . Content development and marketing play a significant role in attracting and retaining users.
• Key Growth Channels : Word-of-mouth referrals, physician partnerships, HeyDoctor telehealth consultations, and GoodRx’s own marketing efforts are key channels that drive growth and user engagement.

Related Facts

Related to GoodRx

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Pharmacy Business Plan Template

Written by Dave Lavinsky

Pharmacy Business Plan

You’ve come to the right place to create your pharmacy business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their pharmacies.

Pharmacy Business Plan Example

Below is a sample pharmacy business plan and template to help you create each section of your pharmacy business plan.

Executive Summary

Business overview.

Healthy1 Pharmacy is a new independent retail pharmacy located in Charleston, South Carolina. The company is founded by Stephen Harris, a licensed pharmacist who has spent more than fifteen years working in the pharmacy industry. Stephen is confident that his strong communication skills combined with his keen attention to detail when preparing prescriptions will help him quickly grow a loyal customer base for his new pharmacy. Stephen has recruited a team of highly qualified professionals to help manage the day-to-day complexities of running a retail pharmacy including marketing, sales, customer service, financial reporting, and operations management.

Healthy1 Pharmacy will provide all of the products and services that are available at large retail chains, only with a better price and a small-town atmosphere. At Healthy1, sales associates and pharmacy technicians will get to know each customer by name and be able to offer a more personalized service not typically offered at larger pharmacies. Healthy1 Pharmacy will be a one-stop shop for any customer in need of a prescription, flu shot, OTC medication, and more.

Product Offering

The following are the services that Healthy1 Pharmacy will provide:

• Over-the-counter (OTC) medications
• Prescription medications
• Immunizations
• Travel medications
• Point-of-Care (POC) Tests
• Compounding

Customer Focus

Healthy1 Pharmacy will target all individuals in Charleston. The pharmacy will target multiple age groups from pediatric to geriatric. Healthy1 will also target patients needing prescriptions filled on a regular basis. No matter the customer, Healthy1 Pharmacy will deliver the best communication, service, and prices.

Management Team

Healthy1 Pharmacy will be owned and operated by Stephen Harris. He has recruited Emily Jackson, an experienced retail pharmacy manager to be his Store Manager and help to supervise the staff and run the day-to-day retail operations.

Stephen Harris is a licensed pharmacist with a Doctor of Pharmacy (PharmD) degree and more than fifteen years of experience working in the pharmacy industry. Stephen has been recognized by his former employer as a top performing pharmacist for five years in a row.

Emily Jackson has been a store manager at a local retail pharmacy for over a decade and has garnered a positive reputation for her exceptional organizational skills and leadership. Emily has worked in the pharmacy industry for so long, she understands all aspects required in running a successful retail pharmacy.

Success Factors

Healthy1 Pharmacy will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of sales associates and pharmacy technicians who will assist customers, answer questions, and provide a personalized approach not found in larger pharmacies.
• Comprehensive array of products and services that includes everything you would expect from a large pharmacy, only with attentive customer service and lower prices.
• Healthy1 Pharmacy offers the best pricing in Charleston. The pharmacy’s pricing structure is the most cost effective compared to the competition.

Financial Highlights

Healthy1 Pharmacy is seeking $400,000 in debt financing to launch its new pharmacy. The funding will be dedicated towards securing the retail space and purchasing equipment, inventory, and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Pharmacy and retail space build-out: $100,000
• Equipment, supplies, inventory, and materials: $100,000
• Three months of overhead expenses (payroll, rent, utilities): $160,000
• Marketing costs: $25,000
• Working capital: $15,000

The following graph below outlines the pro forma financial projections for Healthy1 Pharmacy.

Company Overview

Who is healthy1 pharmacy.

Healthy1 Pharmacy is a newly established independent retail pharmacy located in Charleston, South Carolina. Healthy1 Pharmacy will provide all of the products and services that are available at large retail chains, only with lower prices and a small-town atmosphere. At Healthy1, sales associates and pharmacy technicians will get to know each customer by name and be able to offer a more personalized service not typically offered at larger pharmacies. Healthy1 Pharmacy will be a one-stop shop for any customer in need of a prescription, flu shot, OTC medication, and more. Healthy1 Pharmacy will be able to provide Charleson customers with the experience of a friendly, neighborhood drugstore while ensuring each prescription is handled with the highest standards of quality and care. The team of pharmacy technicians and sales associates will be highly qualified and experienced in helping customers find the right over-the-counter solutions for their individual needs as well as ensuring each prescription is filled accurately and efficiently.

Healthy1 Pharmacy History

Healthy1 is owned and operated by Stephen Harris, a licensed pharmacist with over fifteen years of experience working in the pharmacy industry. Stephen has worked for a large pharmacy chain and managed a team of pharmacy technicians for several years. Stephen’s tenure with the pharmacy chain combined with his pharmaceutical education has given him the skills and knowledge required to start his own pharmacy.

Since incorporation, Healthy1 Pharmacy has achieved the following milestones:

• Registered Healthy1 Pharmacy, LLC to transact business in the state of South Carolina.
• Has a contract in place to lease the retail storefront he will use for his pharmacy.
• Reached out to numerous contacts to include experienced pharmacy technicians and sales associates to advise them of the upcoming opportunities at his new pharmacy.
• Began recruiting the management team members including a store manager, an accountant/bookkeeper, and a marketing director.

Healthy1 Pharmacy Services

The following are the pharmacy products and services that Healthy1 Pharmacy will provide:

Industry Analysis

The pharmacy industry in the United States is valued at $534.2B and is projected to grow to $862B by 2028. Major market drivers include a growing number of types of diseases, an increasing percentage of people with chronic illnesses, an aging population, and higher healthcare costs.

There are more prescription medications being developed, and the demand for more prescriptions is growing faster than ever before. In 2020, there were an estimated 860M medications prescribed by physicians and 336M prescribed by hospitals. This prescription demand is resulting in more pharmacies opening across the U.S. The National Council for Prescription Drug Programs (NCPDP) reports an estimated 20,400 independent pharmacies in 2010. This number has grown to over 23,000 by 2019, a 12.9% increase in the number of independent pharmacies for that time period.

Industry operators in the pharmaceutical market can benefit from providing above average customer service, lower prices than competitors, and products or services that aren’t being offered elsewhere.

Customer Analysis

Demographic profile of target market.

Healthy1 Pharmacy will target all individuals in Charleston, South Carolina. The pharmacy will target multiple age groups from pediatric to geriatric. Healthy1 will also target patients needing prescriptions filled on a regular basis.

The precise demographics for Charleston, South Carolina are:

Customer Segmentation

Healthy1 will primarily target the following customer profiles:

• Parents of pediatric patients
• Geriatric patients
• People taking medications on a regular basis
• People needing compounding services
• People looking for vaccines or immunizations
• People who need lab tests

Competitive Analysis

Direct and indirect competitors.

Healthy1 Pharmacy will face competition from other companies with similar business profiles. A description of each competitor company is below.

Charleston Care Pharmacy

Charleston Care Pharmacy provides a wide variety of pharmacy products and services including OTC medications, lab testing, and compounding. Located in a senior neighborhood, Charleston Care Pharmacy specializes in serving the geriatric population, but welcomes customers of all ages. Charleston Care Pharmacy’s promise is to deliver effective communication, honesty, and integrity in every transaction. Charleston Care Pharmacy’s team of experienced pharmacy technicians assures customers are well taken care of and prescriptions are filled quickly and correctly.

FeelBetterNow Pharmacy

FeelBetterNowPharmacy is a Charleston-based neighborhood pharmacy that provides a full suite of services including compounding, vaccines, lab testing, local delivery, and more. The owners of FeelBetterNowPharmacy are licensed pharmacists who have extensive experience working for independent retail pharmacies so they understand what customers are looking for in a neighborhood pharmacy. Customers who choose FeelBetterNowPharmacy can rest assured they are getting the best quality products at reasonable prices.

Care Better Pharmacy

Care Better Pharmacy is a trusted Charleston pharmacy that is known for providing superior customer service. They are able to provide a one-stop shop for customers looking for convenient OTC and prescription medications, durable medical equipment, vaccines, and immunizations. Care Better Pharmacy is also able to serve customers in need of compounding, recurring prescriptions, and lab testing. They have expert pharmacy technicians to provide information about each medication and answer all of their customers’ questions.

Competitive Advantage

Healthy1 Pharmacy will be able to offer the following advantages over their competition:

• Healthy1 Pharmacy offers the best pricing in Charleston. The pharmacy offers its customers low prices on all of its products and services compared to the competition.

Marketing Plan

Brand & value proposition.

Healthy1 Pharmacy will offer the unique value proposition to its customers:

• Highly-qualified team of skilled pharmacy technicians and sales associates will be able to provide personalized customer service and ensure all prescriptions are handled with care.
• Unbeatable pricing to its clients – Healthy1 Pharmacy does not mark up its products and services at a large percentage. The pharmacy will offer the lowest prices guaranteed. If a customer finds a cheaper price elsewhere, Healthy1 Pharmacy will give the customer a better price.

Promotions Strategy

The promotions strategy for Healthy1 Pharmacy is as follows:

Healthy1 Pharmacy will create and maintain a company website that is well organized, informative, and lists all the products and services that Healthy1 is able to provide. The website will also list promotions and discounts, informative healthcare articles, and pharmacy-sponsored community events.

SEO/Google Marketing

The company’s marketing director will manage Healthy1’s website presence with SEO marketing tactics so that any time someone types in the Google or Bing search engine “Charleston pharmacy” or “pharmacy near me”, Healthy1 Pharmacy will be listed at the top of the search results.

Social Media Marketing

Healthy1 Pharmacy’s marketing director will also manage the company’s social media presence on several platforms including Instagram, Facebook, Twitter, YouTube, TikTok, and LinkedIn. The goal of the social media strategy is to attract new customers while engaging with current customers to encourage referrals, reviews, and feedback.

Content Marketing/Email Marketing

The company will post blogs and other promotional content on a regular basis with informative health and wellness information to keep people coming back. Healthy1 will post informative content on the website, social media platforms, and through email newsletters.

Professional Associations/Networking

Healthy1 Pharmacy will become a member of professional associations such as the Independent Retail Pharmacy Association, the National Community Pharmacists Association, and the Tennessee Pharmacists Association. The company will focus networking efforts on expanding its customer base.

Print Advertising

Healthy1 Pharmacy will invest in professionally designed print ads to display in programs or flyers at industry networking events, in magazines, direct mailers, and in local newspapers.

The pricing will be lower than competitors so customers feel they receive value when they choose Healthy1 products and services.

Operations Plan

The following will be the operations plan for Healthy1 Pharmacy.

Operation Functions:

• Stephen Harris will be the Owner and Lead Pharmacist. He will oversee pharmacy technicians. Stephen has spent the past year recruiting the following staff:
• Emily Jackson – Store Manager who will oversee all retail operations, sales associates, supplier relations, and inventory management.
• Jessica Johnson – Staff Accountant/Bookkeeper who will provide budgeting, tax payments, and financial reporting.
• Tim Thompson – Marketing Director who will provide marketing and sales campaigns for Healthy1 Pharmacy.

Milestones:

Healthy1 Pharmacy will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease the retail space.

9/15/2022 – Finalize personnel and staff employment contracts for the Healthy1 Pharmacy team.

10/1/2022 – Finalize contracts with suppliers.

10/15/2022 – Network at industry events and initiate the marketing and promotional campaign.

10/22/2022 – Begin moving into the Healthy1 Pharmacy storefront.

11/1/2022 – Healthy1 Pharmacy opens for business.

Stephen Harris is a licensed pharmacist with a Doctor of Pharmacy (PharmD) degree and more than fifteen years of experience working in the pharmacy industry. Stephen has been recognized for his commitment to excellence in filling prescriptions accurately and efficiently as well as his communication skills and positive rapport with customers.

Emily Jackson has been a store manager at another retail pharmacy for over a decade and has garnered a positive reputation for her exceptional organizational skills and leadership. Emily has worked in the pharmacy industry for so long, she understands all aspects required in running a successful retail pharmacy.

Financial Plan

Key revenue & costs.

The revenue drivers for Healthy1 Pharmacy are the fees charged to customers in exchange for the pharmacy’s products and services.

The cost drivers will be the overhead costs required in order to staff a pharmacy. The expenses will be the payroll cost, rent, utilities, inventory, supplies, and marketing materials.

Funding Requirements and Use of Funds

Healthy1 Pharmacy is seeking $400,000 in debt financing to launch its pharmacy business. The funding will be dedicated towards securing the retail space and purchasing equipment, inventory, and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of prescriptions filled per month: 2,000
• Average fees collected each month: $50,000
• Retail lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, what is a pharmacy business plan.

A pharmacy business plan is a plan to start and/or grow your pharmacy  business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your pharmacy business plan using our Pharmacy Business Plan Template here .

What are the Main Types of Pharmacy Businesses?

There are a number of different kinds of self storage business , some examples include: Pharmacy, Home Care Pharmacy, Mail Order Pharmacy and Compounding Pharmacy.

How Do You Get Funding for Your Pharmacy Business Plan?

Pharmacy businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Pharmacy Business?

Starting a pharmacy business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Pharmacy Business Plan - The first step in starting a business is to create a detailed pharmacy business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your pharmacy business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your pharmacy business is in compliance with local laws.

3. Register Your Pharmacy Business - Once you have chosen a legal structure, the next step is to register your pharmacy business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your pharmacy business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Pharmacy Equipment & Supplies - In order to start your pharmacy business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your pharmacy business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful pharmacy business:

• How to Start a Pharmacy Business

Where Can I Get a Pharmacy Business Plan PDF?

You can download our free pharmacy business plan template PDF here . This is a sample pharmacy business plan template you can use in PDF format.

Publix just rolled out a new way to cut prescription costs. It involves a new card.

• Howard Cohen Miami Herald (TNS)

Publix and its more than 1,200 pharmacies have partnered with a California company to potentially help customers, those with and without insurance, to cut prescription drug costs on many commonly prescribed medications.

GoodRx, a prescription drug savings card and app that customers can show at pharmacies nationwide to shave the price off prescription medications, also has a membership program that charges a monthly fee. That upgraded GoodRx Gold network option, now accepted at Publix, can save patients more on many common drugs taken for blood pressure, cholesterol, reflux, depression and other health ailments.

In April, the Santa Monica-based company announced that Publix has joined its GoodRx Gold network. The card is accepted at Publix pharmacies across eight states in the southeast, including Florida.

“If customers are GoodRx Gold members, Publix Pharmacy can process their prescriptions under GoodRx Gold,” Publix spokeswoman Lindsey Willis said in an email to the Miami Herald.

Expanding into the Lakeland-based Publix was a strategic move for the company because the Florida grocery giant has pharmacies inside the majority of its 1,337 supermarkets in eight states, including Florida, said Jim Sheninger, pharmacy strategy officer at GoodRx.

“As we continue our mission of making prescriptions more affordable and accessible, the expansion of GoodRx Gold into Publix will offer even more opportunities for consumers to see meaningful savings on their much-needed medications,” he said in a statement.

The GoodRx Gold partnership is the latest prescription savings option Publix Pharmacy has paired with in the last seven months. Last September,  Publix partnered with Visory Health , a prescription savings company based in Orlando, to offer discount cards that can be used at its pharmacies.

Consumers may have questions about GoodRx Gold and how its deal can work at the Publix pharmacy counter. Here are some answers:

What is GoodRx Gold?

What it is: GoodRx Gold is a monthly healthcare membership that gives consumers access to discounted prices on their FDA-approved generic medications. More than 1,000 popular prescriptions may be priced at less than $10 when using the service, according to the company.

How to join:To join GoodRx Gold, consumers can sign up online at  www.goodrx.com/gold  or download the GoodRx app to their iPhone or Android smartphones. Present the GoodRx Gold card at the pharmacy counter or show the app to access savings.

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Cost: Individual plans are available for $9.99 per month and family plans are available for up to six people for $19.99 per month.

Average cost savings: According to the company, in 2023, GoodRx Gold individual plan members saved an average of $3,961 for the year on retail prescription prices. Family plan members saved an average of $5,177 for the year.

Pharmacies that accept GoodRx Gold: The  card and app is accepted at 38,000 pharmacy locations  nationwide. In addition to Publix, GoodRx Gold can be used in South Florida at CVS, including CVS pharmacies inside Target; Navarro Discount Pharmacy; Costco; Cano Pharmacy; EP Medical Equipment Pharmacy; Jackson Memorial Hospital Outpatient Pharmacy; Miami Beach Community Health Center; Mount Sinai Pharmacy Express and others.

Medical insurance

Anyone — health insured or not — can sign up to be a GoodRx Gold member. Out-of-pocket payments made with GoodRx Gold are not applied to insurance deductibles. So in some instances you’re better off using your insurance. In general, you can show your pharmacist your GoodRx Gold coupon or code and see if the savings beats your co-pay. Co-pays vary based on the insurer and plan details.

Price comparisons

Here are how some common medications and how the retail price at a Publix pharmacy in the Miami area compares to a free GoodRx plan and for a GoodRx Gold member who pays the monthly membership fees, according to the company. The Gold program is probably best geared to individuals or families managing monthly multiple medications or those without health insurance.

▪ Atorvastatin (Lipitor). Taken to treat high cholesterol and triglyceride levels.

— Retail price: $47.95.

— Standard GoodRx coupon: $19.58.

— GoodRx Gold: $12.83.

▪ Fluoxetine (Prozac). Taken to treat certain mental/mood disorders, such as depression, panic attacks, obsessive compulsive disorder.

— Retail price: $45.

— Standard GoodRx coupon: $10.31.

— GoodRx Gold: $5.56.

▪ Omeprazole (Prilosec).Taken to treat certain stomach and esophagus problems such as acid reflux and ulcers.

— Retail price: $89.

—Standard GoodRx coupon: $19.36.

—GoodRx Gold: $12.61.

▪ Amoxicillin. Taken to treat certain infections caused by bacteria, such as pneumonia; bronchitis and infections of the ears, nose, throat, urinary tract, and skin.

— Retail price: $13.58.

— Standard GoodRx coupon: $11.38.

—GoodRx Gold: $6.63.

▪ Carvedilol (Coreg). Used to treat high blood pressure and heart failure.

— Retail price: $45.45.

— Standard GoodRx coupon: $23.61.

— GoodRx Gold: $16.36.

▪ Losartan (Cozaar). Taken to treat high blood pressure.

— Retail price: $27.

— Standard GoodRx coupon: $19.

—GoodRx Gold: $12.25.

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Wealth of Geeks

8 Expert Tips to Save Money at the Pharmacy

Posted: February 23, 2024 | Last updated: February 23, 2024

Are you tired of paying for medications? Especially if you’re dealing with a chronic condition or taking multiple medications, those pharmacy bills can add up quickly.

Our team has combined our knowledge of the best money-saving pharmacy tips to help you save some cash on those costly prescriptions and more. One hack we all said we rely on is asking for the generic brand. However, there are plenty of other ways to save money at the pharmacy, too. Learn how to maximize your savings and keep more money in your pocket with these expert tips.

1. Ask for the Generic Brand

Ensuring that your physician prescribes medications with a generic substitute is essential. Keep an open dialogue with your pharmacist, mainly if you have been prescribed a high-cost drug. You can always ask them if there are lower-cost alternatives. 

Know that while generics are usually less expensive, there might be differences in inactive ingredients compared to brand-name drugs, which could affect your response to the medication. If a generic doesn’t yield the desired results, consult your doctor. 

Generics are typically placed in the most affordable tier for those with prescription insurance, providing cost-saving opportunities. You can ask your pharmacist about similar, less expensive drugs within the same therapeutic class that can effectively address your health condition. By knowing the generic counterparts of your medicine, you can save money at the pharmacy while still receiving the necessary care you require. 

2. Try Using Goodrx

If you’re eager to save money at the pharmacy, look at GoodRx. This free mobile app and website have transformed how Americans cut prescription medication costs, contributing to dollars in monthly savings. It’s your ultimate ally in the ongoing battle against skyrocketing drug prices. 

GoodRx offers a price comparison tool accessible through the mobile app or their website, enabling you to secure up to 80% discounts on nearly all FDA-approved drugs, whether brand name or generic. After using the GoodRx search tool, it doesn’t merely display discount coupon prices; it also alerts you to lower cash or membership program rates at specific pharmacies, as well as any manufacturer offers that may be available.

This tool liberates you from the assumption that drug prices are fixed. In reality, prices vary significantly from one pharmacy to another. The only caveat with GoodRx is that your prescription savings do not count toward your insurance deductible. Still, GoodRx benefits you if you are uninsured or enrolled in a high-deductible health plan.

CVS pharmaceuticals can be even cheaper now thanks to a recent partnership. CVS Caremark has partnered with GoodRx to give pharmacy discounts to commercial plan customers.  Caremark members will be able to pay lower prices on generic prescription drugs (when applicable) by automatically accessing GoodRx’s pricing.

3. Unlock Savings With Manufacturer Drug Coupons

Manufacturer coupons are valuable for individuals seeking to save money at the pharmacy. These coupons, which often go by names such as copay cards, copay coupons, or pharma coupons, are incentives offered by pharmaceutical manufacturers to encourage the use of their branded products. 

These drug coupons work with your health insurance , benefiting you from reduced out-of-pocket expenses. However, it’s essential to be aware of their limitations, including cost caps and time restrictions. 

For example, while a coupon may promise a $10 monthly copay, it may have a capped value of $5,000. You’ll revert to your standard, higher copay if your prescription medication costs exceed this limit within the year. 

Manufacturer coupons are a handy resource for cutting prescription costs. They are readily available online and through healthcare providers, making them a valuable tool for those seeking to reduce pharmacy expenses.

4. Learn About Patient Assistance Programs

Patient assistance programs (PAPs) are a lifeline for those looking to save money at the pharmacy when they lack health insurance or have inadequate coverage. Pharmaceutical manufacturers usually back them. These medication assistance programs serve as a crucial safety net for countless Americans by offering financial aid to access medications at minimal or no cost.

All major pharmaceutical companies extend their hand through assistance programs to make medications more accessible. While eligibility criteria differ among drug companies and available funding may be limited, exploring these medication assistance programs is a good step. These programs may provide free medications to uninsured individuals or help offset co-pays for those with high-deductible insurance plans.

Program eligibility is typically income-based, accommodating patients who fall into three primary categories: those without insurance, individuals whose insurance does not cover the prescribed medication, or patients whose prescription costs constitute a significant portion of their annual income.

The Medicine Assistance Tool (MAT), initiated by the Pharmaceutical Research and Manufacturers of America, is a starting point in looking for the proper assistance program, electing your brand-name medication, and sharing essential preliminary information. MAT swiftly identifies programs tailored to your eligibility, ensuring that vital financial support is within reach for those who need it most.

5. Buy In Bulk

If you want cheaper prescription drugs, buying medicine in bulk can be a wise move to save money at the pharmacy while ensuring you have a consistent supply of your essential medications. One practical approach is to consult your healthcare provider or pharmacist about obtaining a 90-day supply rather than the standard 30-day quantity.

You don’t have to be a member at warehouse stores like Costco and Sam’s Club to take advantage of their cheaper prices, although club members get some amazing perks.  For example, Sam’s Club Plus Members can get free prescription drugs.  There is a list of ten generic prescription drugs for $0 and 600 generic drugs for $10 or less.

Many insurance plans offer convenient mail-order pharmacy options for home delivery, permitting you to order a three-month stash of your regular medications in one go. This approach mainly benefits those on year-round prescriptions, as it can translate into significant savings. 

While some medicines, especially heavy-duty painkillers and opiates, may have restrictions on bulk orders due to the need for frequent dose adjustments, it’s always worth exploring the possibility. 

Buying in bulk usually costs less and provides insights into the feasibility of obtaining extended supplies, allowing you to enjoy the benefits of cost-efficient, long-term medication management.

6. Check Pharmacy Membership Programs

When managing your healthcare expenses and seeking ways to save money at the pharmacy, taking advantage of drugstore deals at major pharmacy chains like CVS, Rite Aid, and Walgreens can be a game-changer. These programs offer valuable incentives to customers, allowing them to accumulate points by simply engaging in health-conscious activities like filling prescriptions, getting vaccinations, monitoring vital health indicators, or even embracing a healthier lifestyle. 

The reward for your dedication often comes in the form of discounts or reward dollars that can be applied to various health and wellness products and services. These benefits extend beyond prescription drug savings, encompassing multiple healthcare needs. It’s important to note that exceptions exist, and not all purchases are eligible for these reward programs.

These pharmacy chains are committed to safeguarding your privacy, ensuring your data remains protected and isn’t sold to external marketers without your explicit consent. So, while navigating the realm of healthcare expenses, exploring these pharmacy deals can make a significant difference in your quest to optimize your healthcare spending.

7. Look for Discounts Online and Offline

In the quest to save money at the pharmacy, one highly effective strategy is to explore online and offline discounts when purchasing medicines. The reasons for doing so are compelling. 

Online platforms offer many opportunities to secure discounts on prescription medications. Various websites and apps are dedicated to comparing medication prices and locating the best deals, ensuring you don’t overpay for the essential medicines you need. Online pharmacies often provide exclusive discounts and promotional codes, which can substantially reduce the cost of your prescriptions.

Local pharmacies and drugstores frequently offer in-store promotions, loyalty programs, and rewards for frequent customers. You can consistently trim down your pharmacy expenses by looking for and taking advantage of these discounts.

By combining the power of online price comparisons, in-store promotions, and manufacturer coupons, you can maximize your savings on prescription drugs and improve your overall financial well-being. The key is to be proactive in your search for discounts in the digital world or your local community to ensure you take advantage of valuable opportunities to save money on prescription drugs at the pharmacy.

8. Consider a New Insurance Plan

When seeking effective ways to save money at the pharmacy, exploring a new insurance plan or provider can be a strategic move. While it may involve some effort and considerations, switching to a different plan can significantly impact your healthcare expenses, especially prescription medications. It’s essential to stay proactive and review your insurance options annually during open enrollment periods, whether through your employer or Medicare.

Insurance plans can change their drug coverage each year, and ensuring you have the best plan for your specific needs is crucial for your financial well-being. Before making the switch, conduct thorough research to ensure no coverage gaps for your essential prescriptions. Talk to your current insurance provider to explore solutions tailored to your medication requirements.

Many insurance companies offer online services and drug price look-up tools, making finding the most cost-effective options for your medications easier. Embracing a new insurance plan may require some effort. Still, it can be a powerful strategy for optimizing your healthcare spending.

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Moscow-City – The Moscow International Business Center

• 3 years ago

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

• 1 How It All Began
• 2.1 Moscow-City Central Core
• 2.2 Tower 2000
• 2.3 Evolution Tower
• 2.4 Imperia Tower
• 2.5 Moscow Tower and St. Petersburg Tower
• 2.6 Steel Peak Tower
• 2.7 Federation Tower
• 2.8 Mercury City Tower
• 2.9 OKO Tower Complex
• 3.1 Afimall City Shopping Center
• 3.2 Bagration Bridge
• 3.3 Expocentre Fairgrounds
• 4 Renting and Buying Real Estate in Moscow-City

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

• Moscow-City Central Core;
• Tower 2000;
• Evolution Tower;
• Imperia Tower;
• City of Capitals (Moscow Tower and St. Petersburg Tower);
• Steel Peak Tower;
• Federation Tower;
• Mercury City Tower;
• OKO Tower Complex.

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

• The Afimall City Shopping Center;
• The Bagration Bridge with two galleries and a shopping arcade;
• The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

• Retail brand stores;
• Exhibitions;
• Game rooms;
• and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

• Favorable location;
• Convenient transportation links;
• Well-developed infrastructure;
• High safety level;
• Efficient architecture;
• Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

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You Russians have a very Beautiful Rich Culture, I remember a time where the Russian Citizens Broke out in Song Singing the Hymn of Red October and there wasn’t a dry Eye in my House that day. You Spartans Are a Wonderful People to live with.

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