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Pharmacy Tech Test

NATIONWIDE DSN REPORT -- Technology and consumers' gotta-have-it-now mentality continue to create new revenue and service opportunities for retailers, with one of the newest trends currently taking hold involving automated prescription refill machines.

Kmart has joined Longs Drug Stores as the second major chain to begin testing this technology, with agreements for similar tests in the works at Walgreens, Duane Reade, Safeway and Ahold. A machine made by Distributed Delivery Networks was installed at Kmart's busy Penn Station store in Manhattan last month, and depending on the test, this service could eventually be rolled out to Kmart's more than 1,000 pharmacies.

Besides this store, a second Automated Product Machine from DDN is in place at White Cross Pharmacy in San Diego, Calif., while competitor Asteres has similar machines called ScriptCenter in operation at four Longs Drug stores in two California markets.

"Penn Station is a hub of busy commuters--a perfect location for consumers to take full advantage of this timesaving, error-avoiding technology. As more retailers begin to realize the numerous benefits of APM technology, we are sure to see a major shift in the way prescriptions are dispensed," said William Holmes, president of DDN, a division of Amistar Corp.

Linda Pinney, founder and chief business officer at Asteres, said her company has received strong retailer and customer interest in the program as well. She estimated 40% of refills at Longs pharmacies using ScriptCenter are picked up at these in-store machines.

"Customers don't have to wait in line to pick up a prescription," Pinney said. "They also have an opportunity to pick up the prescription after hours and that's a big thing."

To use the machine interested customers sign up for the free program, available for refills only. The user can then pick up prescriptions at the machine by logging in with a user name and password. A debit or credit card is swiped to pay for the refill, user identity verified online and then the packaged prescription is dispensed from the machine similar to a vending machine. Both companies' machines take photos of the user, just like bank ATMs, as a security precaution.

Numerous security safeguards are in place to prevent theft of drugs, including the fact that both machines are built into the back of a pharmacy window to deter machine tampering.

Holmes said at White Cross Pharmacy, the company's test store, customer feedback has been overwhelmingly positive and the program error-free to date. While these programs may save retailers money on pharmacist labor hours, each still requires dispensing of the refill by a pharmacist, so neither program is fully automated as such. In addition, both machines have prompts in place to permit users to contact a pharmacist if needed.

"Generally we support automation, particularly that automation that helps the pharmacist then focus on their clinical role," said Susan Winckler, vp for policy and communications at the American Pharmacists Association, a society of more than 53,000 pharmacists. "It does not, however, eliminate the risk for errors and need for pharmacist oversight."

Use of the prescription-dispensing machines must be approved by a state's board of pharmacy. AS of now, individual retailers must seek a waiver to use the machines, with such waivers granted to companies now in California, Ohio, Hawaii and Virginia. The machines are either purchased or leased, with no service fees charged by Asteres or DDN.

Pinney said retailers are interested in expanding use of the machines to dispense over-the-counter restricted or high-shrink items such as Sudafed and razor blades. Vending machine applications have expanded greatly in recent years beyond snacks and soda to include items such as retailer gift cards and lottery tickets, riding the wave of consumer interest in self-checkout and other self-service programs such as gift registry kiosks.

In a related effort, Duane Reade is expanding its network of self-help pharmacy kiosks in its stores and medical facilities in the New York City area. While this program does not dispense refills, it does permit the user to interact live online with a pharmacist and coordinate free home delivery or pickup of a prescription at any Duane Reade pharmacy.

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