How an Independent Pharmacist Established a Non-Profit Pharmacy for the Public Good

Interview with Non-Profit Pharmacy Founder, Edward Ullmann

By Steve Malen PharmD/MBA , Producer -? Harmacy Film

Edward Ullmann is the pharmacy manager and founder of Wellness Rx LLC, and Pharmacy for the Public Good, which will be one of the few non-profit pharmacies in the US. At Harmacy Film we have interviewed quite a few "hope" stories and this is definitely another one to add to the list. We hope you enjoy reading this interview and it gives you some inspiration that all is not lost in retail pharmacy. If you’re an independent pharmacy owner who feels like you are drowning, the approach shared in this interview might provide some actionable insight. For example, there are many revenue options including donations and grants that you become eligible for by switching to a non-profit business model. Read on!

What does it mean to be a non-profit pharmacy?

Edward Ullmann: "A non-profit community pharmacy is different from FQHCs [Federally Qualified Health Centers], clinic pharmacies, college student pharmacies or non-profits that serve the medically uninsured. A non-profit community pharmacy offers hope to rural and urban pharmacy deserts that have little probability of pharmacy access ever again. Our model expands traditional pharmacy to natural medicine and the creation of Wellness Centers to truly meet the needs of the people. To be of 'service to others' regardless of race, income, religion or sex. To give a community the best probability for sustainability and long-term permanence for their 'Community Wellness Center/Pharmacy' similar to the passion they have for their local library."

Steve Malen: "I like the library analogy. Instead of people coming in to borrow books they are coming in for life saving medication.”

How did you find support and resources to pursue this alternative business model?

Edward Ullmann: "First, the development of the Wellness Center must have the early support of the Town/County government, business community/Chamber of Commerce, churches, education, Economic Development Agencies and local nonprofits. From this seed, meetings occur and the magic begins. Introductions are made and seed capital is raised from tax-exempt private donations, private foundations and public grants. Then the vision takes shape, PR follows and community enthusiasm builds. Like a private initiative, low-interest loans and traditional financing are available that will require an accredited co-signer. As development takes place, local and regional private and public foundations are identified along with public sources and private donors to build-up reserves to meet operating deficits. The rest is history. A community will fight to protect their ‘home grown’ investment."

What were some of the challenges you didn't expect and how did you overcome them?

Edward Ullmann: "Without question, getting a lease done. Although Phoenicia is my hometown and two buildings that had potential (unoccupied for over 5 years) were available, both owners expressed little interest in helping establish a nonprofit pharmacy for the community. And certainly no interest in any rent abatement or helping with the build-up costs. In the end, we chose the site with a higher rent, but a 50% reduction in buildout costs. The lesson going forward is that the space for a new nonprofit Wellness Center/Pharmacy is critically important both in location, size, buildout costs & rent charges. This must be locked-up early and you cannot assume that all members of a community are with the 'spirit of the project'. The best scenario is when a location is donated for a write-off by an individual family or foundation or when the real estate can be purchased by a grant or at a discount that then gives the owner of the property a tax write-off for a partial donation."

From idea to launch - how long was your process?

Edward Ullmann: "We started with the success of our Tannersville pharmacy and the development of a senior management team. This allowed us to leverage resources and accelerate the process. Overall, 12-16 months. Less if a high-quality location is secured early."

What do you hope to accomplish in the community? In the industry?

Edward Ullmann: "Passion for the community and pride that a team effort can create magic for tomorrow’s kids. Once we develop three successful non-profit Wellness Centers, a critical mass will allow other communities to replicate our model and provide 'hope' for an industry in distress."

Who in the industry do you admire, follow?

Edward Ullmann: "Although NCPA had shown no interest in our story, I do admire NCPA’s CEO Doug Hoey for his courage to tell the truth and to take off the gloves in his fight for independent pharmacy. I really don’t follow anyone in the industry."

What are you excited about seeing in the next year in our industry?

Edward Ullmann: "Hope may be a better aspiration. Would love to see our pharmacy colleges get more politically muscular at the state level and to not give-up on the possibilities for retail pharmacy. Hope to see PBM’s be regulated and be required to provide fair reimbursement. Hope to see the profession return to its roots as community leaders for public health, innovation and wellness. Hope to see a new movement where community Wellness Centers led by pharmacists expand primary care access for rural and medically underserved urban communities."

Steve Malen: "It is beautiful that the first word of the answer to the last question is HOPE. On behalf of the Harmacy Film and pharmacists and technicians around the country we thank you for bringing hope to an industry that is plagued with despair. We promise to spread your message to as many people as we can and we can't wait to visit you in April."