Matt's Minutes (Vol. 9): Help Wanted🫶🩺: Understanding the Pharmacy Technician Shortage🥼💊
Investing in the Pharmacy's Most Vital Instrument
Hey everyone - It’s been a hectic few weeks with tons of interviews, exams, and chatting with founders, but we are back this week for another newsletter!
With all the labor union strikes happening this year, I thought it would be a good idea to address some of these issues going on in healthcare by looking through the lens of a specific healthcare industry. Pharmaceuticals.
As some of you may know, the shortage of pharmacy technicians has caused pharmacies to struggle to keep up with growing demand. Pharmacy technicians play a critical role in healthcare, assisting licensed pharmacists with dispensing medications, taking prescriptions, and managing pharmacy operations.
However, the field is currently facing a shortage of qualified technicians that threatens to undermine pharmacy services across the country. In 2021 alone, vacancy rates have topped 30% with 1 in 10 hospitals reporting shortages of 40% or more in their workforce.
Why is this shortage happening?
This shortage is driven by several key factors:
High Competition Within Labor Pool
Currently, the barrier to entry to become a pharmacy technician is relatively low with the main requirements being a GED (high school diploma), being at least 18 years old, and in some states, passing the PTCB exam.
With that being said, you may wonder how is there a shortage if the barrier is lower.
While you are correct in thinking lower barrier = higher supply, this isn’t always the case when the supply is shifting towards other roles that may pay more.
With the increase in popularity of occupations through Amazon, Uber, and Instacart, the labor pool for this population demographic has been rapidly shrinking, causing many pharmacists to resort to hiring agencies to fill spots in the short term when traffic increases.
High Turnover Due to Burnout and Low Pay
Pharmacy technician positions are notorious for high turnover due to low pay and high-stress work environments, which contributes significantly to the staffing shortage. The workload and pressure on pharmacy technicians have increased dramatically in recent years as prescription volumes have risen. However, technician salaries have not kept pace.
Average national wages for pharmacy technicians are around $40,000 per year, though retail salaries are often lower at approximately $36,000 annually. Moreover, the high-stress nature of the work also contributes to burnout. Technicians deal with demanding patients and long hours on their feet resulting in 51% of pharmacists experiencing burnout in their career.
Aging Population and Increase Reliance on Medication
With the average age of mortality slowly increasing every year, large chunks of the American population are getting older causing increased demand for pharmacy services and technicians.
The United States has also increased its reliance on medication as most people believe it is easier to “pop a pill” rather than change their lifestyle. This can be highlighted in a survey conducted by the CDC where they revealed that 48% of people used at least one prescription drug in the past month and around 31% of people used two or more per month.
Due to these shortages, there have been tangible impacts greatly affecting the overall pharmacy industry. Overwhelmed pharmacists are suffering from burnout as they struggle to take on more workload.
Customers experience poor service and longer wait times. Medication errors and safety risks also increase without adequate technical support. And, health systems are forced to rely on temporary contract staffing services to fill open positions, increasing costs.
What are some ways we can combat this shortage?
Career Lattice vs Latter
One strategy is to provide career advancements for pharmacy technicians to roles that can cater to technicians’ desire to advance in their careers with flexibility.
This can include horizontal hierarchy movement within pharmacies or the healthcare industry at large while not just promoting laterally. This provides more incentive for pharmacy technicians to stay in healthcare (where there are many shortages) rather than transition out of the industry.
Offer Incentives
To attract and retain more pharmacy technicians, targeted financial incentives should be offered for those filling high-need roles. Signing bonuses, student loan forgiveness programs, and increased wages above industry averages can make difficult-to-fill technician positions more appealing.
Expand Access to Pharmacy Technician Training
Expand access to training programs that can develop new qualified graduates to fill needed roles.
Formal training through vocational and technical schools, community college programs, and registered apprenticeships is currently limited and varies greatly by region. Building partnerships between schools, colleges, and pharmacy employers to grow high-quality, accredited training programs in more areas could help build a pipeline of new talent.
Improve Technician Working Conditions
To combat burnout, pharmacies must provide technicians with adequate staffing, manageable workloads, and greater autonomy. Having appropriate technician-to-prescription volume ratios reduces understaffing strain. Adjusting unrealistic workload expectations minimizes excessive pressure.
Giving technicians more control over tasks, schedules, and workflow decisions provides a sense of ownership. Strong support resources are also essential for improving workplace culture and satisfaction. Offering counseling services, well-being programs, ongoing training, and avenues for open feedback demonstrate that technicians are valued.
The pharmacy technician shortage presents a pressing challenge that requires collaborative solutions. By expanding training opportunities, implementing creative incentives, improving working conditions, and providing advancement options, we can begin to stabilize the pharmacy workforce.
Startups that caught my eye:
ShiftRX, a Texas-based startup, focused on leveraging AI for seamless sourcing to integration of temporary healthcare providers. Currently bootstrapped.
Why this is interesting: ShiftRx presents a promising investment opportunity to address pharmacy staffing shortages through its temporary marketplace model. By efficiently connecting credentialed pharmacists and technicians to openings during high-demand periods, ShiftRx provides workforce flexibility critical for understaffed pharmacies. This on-demand access to qualified candidates can help pharmacies avoid reducing hours or shutting down due to staffing gaps. While reliance on temporary staffing poses some risks if used improperly, ShiftRx's marketplace innovation has the potential to alleviate serious pharmacy labor challenges while still incentivizing the recruitment of permanent hires. With strong vendor screening and inventory controls, ShiftRx could enable pharmacies to maintain operations and patient access when facing shortages. Providing this emergency staffing option makes ShiftRx a compelling avenue for pharmacies struggling with today's labor dynamics.
Quote of the week:
"The future of healthcare lies in the hands of our incredible pharmacy technicians. We must ensure they have the support and resources to keep succeeding in these invaluable roles."
Bill Gates
Have a great weekend!
Great info as always Matthew!