14 Essential KPIs Every Pharmacy Owner Must Track to Unlock Hidden Revenue
September 30, 2025
As a pharmacy owner, are you leaving thousands of pounds on the table every month? Most pharmacy owners focus solely on dispensing prescriptions but miss the bigger financial picture that could transform their business profitability.
At RA Accountants, we’ve been working with pharmacy owners for over 15 years, and we’ve identified 14 core KPIs that every successful pharmacy should monitor. These metrics don’t just track performance—they directly impact your bottom line and could unlock an additional £40,000 to £75,000 in annual revenue.
Please note all figures are correct at time of publishing 30/09/2025 but are subject to change.
Watch our pharmacy specialist accountants Talha and Poonam break down some of the top KPIs pharmacy owners should track to grow their business.
Why KPI Monitoring Matters for Pharmacy Owners
While dispensing prescriptions remains the foundation of your business, the most successful pharmacy owners understand that sustainable growth comes from optimising every revenue stream. From clinical services to specialized programmes, there are numerous opportunities to increase profitability—but only if you’re tracking the right metrics.
Let’s explore the 14 essential KPIs that will help you grow your pharmacy.
Section 1: Prescription Management & Accuracy
- Items Dispensed vs Paid For
This foundational KPI tracks the discrepancy between what you report to the NHS and what actually lands in your account. Most pharmacy owners know this gap exists, but few actively manage it.
Action points:
- Make thorough checks a priority
- Avoid late submissions (deadline: 5th of following month)
- Request NHS breakdowns when major discrepancies occur
- Prescriptions Switched From Exempt to Chargeable
Here’s where small attention to detail can save significant money. When prescriptions are incorrectly switched from exempt to chargeable, you lose revenue and the patient faces fines.
The cost: Just 5 prescription errors monthly costs you £594 annually—potentially £1,188 if you’re missing higher-value items.
The solution: Regular staff training and a zero-error business target for exemption errors. Monitor your FP-34 forms closely to spot these issues early.
- Expensive Prescription Fees
Expensive prescriptions over £100 or £300 need special attention. The longer they sit uncollected, the longer you wait for payment, directly impacting your cash flow.
Best practice: Make phone calls, arrange deliveries—do whatever it takes to get these items to patients quickly.
Section 2: High-Value Clinical Services
- New Medicine Services
New Medicine Services represent a fantastic revenue opportunity that many pharmacies underutilise. The service involves two calls over four weeks: one phone call one week after the new medicine is dispensed, and another three weeks later.
Revenue potential: £14 per intervention and another £14 for the follow up consultation, with eligibility for 1% of your monthly dispensations. If you’re dispensing 10,000 items, that’s 100 consultations worth £2,800 monthly—or £33,600 annually in pure profit.
Key success factor: Resource management and patient engagement. Don’t ask patients “can we call you?”—tell them “We will call you.”
- Pharmacy First Consultations
Pharmacy First is revolutionising minor illness treatment and offers significant revenue potential. You earn £17 per completed consultation, plus up to £1,000 monthly bonus if you hit the threshold—that’s £12,000 extra per year.
- CPCS Payments
Community Pharmacy Consultation Service payments require constant monitoring. Track every consultation to ensure you’re paid for the services you provide. This is about systems and documentation—make sure nothing falls through the cracks.
- Discharge Medicine Services
These services pay £35 per patient but are only initiated by local hospitals for local patients. Crucially, you cannot promote this service, but you must ensure your pharmacy records are up to date. Poor record-keeping here risks pharmacy closure—it’s that serious.
- CVD Hypertension & ABPM Fees
Blood pressure services offer an important revenue source: £10 per patient over 35 for CVD screening, plus over £50 for ABPM monitoring. Any trained staff member can provide this service.
Opportunity: Train your team to spot opportunities when patients collect prescriptions, and proactively offer this to general customers.
Section 3: Vaccination & Specialized Services
- Flu/COVID Vaccination Payments
Vaccinations provide straightforward revenue streams. £9.58 per flu vaccine adds up quickly during flu season. For COVID, its £7.54 per vaccine administered.
Critical point: Internal record keeping is essential. You must track every vaccine administered to match against NHS payments.
- Contraception Consultation Services
Contraception consultations pay £25 per consultation. You need to complete the training course first, but once qualified, this becomes a valuable ongoing revenue stream. Train your staff to identify opportunities and provide professional, confidential service.
- Methadone Payments
Methadone services pay over £1 per patient plus reimbursement of costs. While the per-patient fee seems small, it provides consistent revenue for pharmacies serving this patient population. Ensure your staff are properly trained on protocols and documentation requirements.
- Travel Vaccines
Travel vaccines represent significant revenue opportunities, especially during peak travel seasons. Each consultation and vaccination can generate substantial income. Train your staff to identify travel needs and provide comprehensive travel health services.
Section 4: Funding & Support Schemes
- Pharmacy Access Payments
Pharmacy Access Scheme payments require no application but you must meet specific criteria: no pharmacy within 1-mile radius, and must fall within a specific dispensing volume range to qualify. If you qualify, the NHS calculates your payment automatically—it appears on your FP-34.
- Staff Turnover
Monitor staff turnover closely as it directly impacts all revenue streams. High turnover leads to exemption errors, missed service opportunities, and poor patient relationships. Invest in staff training and retention—it’s not just about workplace satisfaction, it’s about protecting your revenue.
The Financial Impact: Putting It All Together
A well-managed pharmacy tracking these 14 KPIs could see additional revenue of £40,000 to £75,000 annually. That’s the difference between surviving and thriving in today’s competitive pharmacy market.
However, the challenge lies in implementation. You need:
- Systems to track all metrics effectively
- Staff training to execute services properly
- Expertise to optimise performance continuously
How RA Accountants Can Help
This is where RA Accountants makes the difference. We don’t just handle your year-end accounts—we help you build systems to monitor these KPIs monthly. Our specialist pharmacy accounting services include:
- Monthly KPI monitoring systems to track all revenue streams
- Tax planning strategies that maximise profits from clinical services
- Gap analysis to identify missed opportunities
- Action plans to capture untapped revenue
- Staff training guidance to improve service delivery
- Compliance support to avoid costly errors
Our pharmacy clients have consistently improved their profitability by implementing these monitoring systems. With over 15 years of experience serving pharmacy owners, we understand the unique challenges and opportunities in your sector.
Ready to maximise your pharmacy’s revenue potential?
RA Accountants are specialists in offering accountancy services to pharmacy businesses. We offer a complimentary, initial online consultation to discuss your personal circumstances and to see how we can help.
Get in touch to book your appointment today.
Please note all figures are correct at time of publishing 30/09/2025 but are subject to change.
These articles are for guidance only and professional advice should be obtained before acting on any information contained in them. No responsibility can be accepted for loss occasioned howsoever to any person as a result of action taken or refrained from as a result of reading.
