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InterMed provides services that augment the pharmacy’s core business of providing quality health care. With InterMed, your pharmacy will be able to find quality staff and offer them leading-edge benefits that only larger corporations currently offer.

Procurement Services

To optimize margins, it is important that we understand three critical areas of pharmacy operations as it pertains to drugs.

These three critical areas are:

  • Price of Purchased Drugs
  • Drug Utilization
  • Inventory Control

Price of Purchased Drugs

The terminology that is often used when discussing pricing with a wholesaler is the phrase “Cost ± __%”. The concern with this concept is that this terminology is a somewhat arbitrary value and often varies from wholesaler to wholesaler. Since the pharmacy does not have a clear understanding of each wholesalers cost, it is very difficult (and really unfair) to say a “Cost minus 1%” at one wholesaler is better or worst than a “Cost minus 1 1/4%” at another wholesaler.

To solve this concern and to understand the actual pricing for drugs that are purchased, Intermed has contracted for specific pricing on several thousand separate drugs that are most commonly used. By having the actual prices for each specific drug, an accurate comparison can be done to determine the actual overall cost from each wholesalers.

Drug Utilization

It is understood that the actual price that we pay for a drug is important, but is it equally important to understand how often we use that drug. If we save $4 on a drug that we use once a month and we save $2 dollars on a drug we use 500 times a month, we can see how a utilization analysis is needed to understand our costs and savings.

For a pharmacy to understand their utilization rates and resulting costs, InterMed, in conjunction with SRS, can conduct a pharmacy utilization study. By using the SRS pharmacy management system, pricing information and the specific utilization rate at a pharmacy can be combined to determine the resultant cost or savings for a specific pricing schedule. This information is a key element in helping a pharmacy analyze the effects that price changes have to profit margins.

Inventory Control

To address inventory control as it relates to our operating costs, we need to consider the amount of money we have committed to maintaining an inventory, the cost of that money and the potential risk of a drug passing its expiration date. To help improve these inventory costs, it is important to understand our inventory levels and maintain them at an optimum level. To do this, we utilize one of the innovative features of the SRS Management System that allows the pharmacy to control inventory by automatically adjusting for seasonal usage. By using this system, some pharmacies have been able to reduced their inventory costs by 10-15%. This method will also help the pharmacy to reduce the amount of drugs that often expire on the shelf.

Payroll Services

The objective of the InterMed payroll system is to provide payroll services for independent pharmacies that use the SRS Pharmacy Management System. InterMed has partnered with a software provider to allow our associate pharmacies to use “state of the art” technology to provide a quick and accurate payroll system linked to InterMed’s Web site. Our partner Ceridian will keep the software up to date with the latest Federal, State and Local requirements as they pertain to payroll services and tax legislation. Data entry support and associated money transfer support will be conducted by InterMed while system technical support will be provided by Ceridian.

This New InterMed Payroll System will have the following features & capabilities:

  • The system is Web Based to allow for all entries to be entered via InterMed’s Web site.
  • The Payroll system will utilize the SRS Time Clock tracking program via InterMed’s Web site.
  • The System has the ability to do employee direct deposit payroll for each of the independent pharmacies with separate bank accounts. This feature will eliminate the need for InterMed to pool monies into an independent InterMed bank account to provide this payroll service. (Transactions are done through Ceridian’s Banking Clearing House.).
  • The system has the ability for each employee at each pharmacy to have multiple direct deposits to include checking, savings and investment options to the financial institutions of their choice.
  • Each employee may change direct deposit institutions on line via InterMed’s Web site. Employees will create and maintain their own passwords.
  • Each employee has the ability to review their pay stub on line, to include hours worked, vacation remaining, sick days, etc. (password protected).
  • The system has the capability to integrate payroll with a Pre-Tax Flexible Spending Account (FSA) for health care and dependent care costs reimbursement. Monies are deposited into a separate account for reimbursement of costs to the employee as needed. (Third Party Administration (TPA) services to be provided separately by InterMed).
  • The system is capable of allowing each pharmacy to incorporate their own individualized Retirement Program that allows deductions into separate retirement accounts for each employee or a general account for a Defined Benefit Plan.
  • The system has the ability to generate W-4s and W-2s for employees and the required year-end statements. The system will also generate the forms for new employees.
  • The System has the capability to provide tax forms and appropriate timing for employers to meet taxing authority requirements and payments. Pharmacies have the option to have these taxes paid via the system or make their own payments. This includes Federal, State and Local Taxing Authorities.
  • The system has the capability to provide an actual check when direct deposit is refused.

Flexible Speding Accounts

What is a Flexible Spending Account?

As health care costs have risen, the Federal Government through section ( 125) of the Internal Revenue Code (IRC), has made it possible for individuals to pay for health care, child care and certain other qualified costs with pre-taxed dollars. Paying for these costs with pre-tax dollars reduces an employee's federal income tax, state income tax and social security taxes. Likewise for the employer, it saves the pharmacy paying the approximate 8% FICA tax for the employee on these pre-taxed dollars.

For a basic understanding of the Flexible Spending Account(FSA) or sometimes called “ Section 125 Cafeteria Plans”, lets first discuss what benefits or costs are allowed to be included in the plan. To begin, the IRC allows five general benefit categories to be included in FSA Plans. These areas are as follows:

Employee-paid insurance premiums:
These qualified expenses are the payroll deducted health, dental, eye, disability accident or any other insurance premiums that are paid by the employee.
Medical expenses not covered by insurance:
These typical expenses include insurance co-pays, eye exams, glasses, lenses, dental exams and dental work, physicals,chiropractic services, prescription drugs and many OTC drugs to name a few.
Child Day Care and Elder Care expense:
The cost of daycare for dependent children while parents are working. This includes before and after school programs along with nursery or nanny care services. Expenses for a dependent parent are also allowed in this program.
Adoption Expenses:
Qualified adoption expenses are allowed.
Transportation and Parking Expenses:
To promote mass transit, the cost of certain parking and mass transit passes are eligible.

Retirement Plans

Pension and Tax Deferred Savings Plans

As employees plan ahead for their retirement years, three basic potential sources of income may be available to them. These three sources are:

  • Social Security
  • Company Pension
  • Personal Savings Plans

The topic of this discussion will center on Pension Plans and Personal Savings and how Intermed can help employees to better prepare for their retirement.

In planning for those retirement years, the Federal Government allows individuals to take a portion of their salary on a pre-tax basis and save it in a special retirement account ( one does not have to pay Federal and State Income Taxes on this money until withdrawn at retirement). The benefit here is that one can have a larger amount of money to save if they do not have to pay taxes on that money when it is originally given to them. Additionally, people do not have to pay taxes on the interest earned on this account until they withdraw the money after retirement. This benefit allows the money in this account to grow at a faster rate than if one had to pay yearly taxes on the interest earned.

Health Care Services

InterMed Insurance Offerings

  • Group Life and Accident Plan
  • Group Long and Short Term Disability
  • Medical – Employer Paid Group, Gap, and Individual
  • Retirement Planning
  • Executive Financial Planning
  • Property and Casualty Coverage
  • Workers Compensation

Human Resources

As an InterMed member, you will have access to Ceridian's Human Resources website, www.hrcomply.com. Once signed up through InterMed, you have access to certified information regarding HR Compliance Issues. Ceridian wants to assist clients in being 100% compliant with labor laws, wage laws, and disability laws to name a few. Questions often answered on this site are ones that an employer may have typically called an attorney to answer.

Employee Assistance Programs (EAP)

Employees and their families on the InterMed/Ceridian payroll system will be able to utilize an Employee Assistance Program via the Internet . This service allows for confidential information on Addiction, Credit Repair and Counseling, Grief Management, Divorce and Abuse to name a few.

Kodak Digital Printing Services

InterMed has partnered with Kodak to develop a 'Strength In Unity' Program that provides In Store Digital Printing Capabilities to the Independent Pharmacy. As the current digital processing market continues to grow, Kodak and InterMed will help you in taking advantage of this potential profit opportunity. By utilizing this program, it will allow the Independent Pharmacy to compete with the larger chains in the fast growing digital printing market and bring additional consumers into your Pharmacy.

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