How one pharmacy bounced back from a killer tornado, and lessons all owners can learn

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1 Rising FROMRuin

2 How one pharmacy bounced back from a killer tornado, and lessons all owners can learn by David Starrett, RPh 21

3 It could be called A Tale of One City. To quote Charles Dickens from A Tale of Two Cities It was the best of times; it was the worst of times. The tornado of May 22, 2011, certainly gave my wife and me, our employees, family and friends, cause to experience a vast sea of emotions, ranging from overwhelming loss to humble thankfulness, which would be our tale since that tragic day. We were out of town on that Sunday, celebrating a high school graduation of one of our nieces in northern Missouri. After making a stop in Kansas City, we headed south and received a text message from one of our employees that said STORE GONE. What did that mean? We had no idea, and no clue about the storm pounding down on Joplin and the surrounding area. Next was a call from a neighbor who was in Texas at the time asking, Did we lose our houses? Again, we did not have any idea, but soon learned of the tragic events. My cell phone was lighting up like a Christmas tree. As we traveled on, talking nonstop with family and friends, we were able to tune into a Joplin radio station to hear the details. That last hour of travel seemed like forever. As we approached Joplin, we had already decided to navigate around the outskirts of the area to reach our home in the south part of town. By this time I had left a voice mail with my pharmacy business consultant in St. Louis. My wife Sheree and I had also come to the conclusion that we had better cancel our trip (we were supposed to fly out that Monday for a week s vacation in Cancun). We arrived at the house to darkness, no Editor s Note: On May 22, 2011, a massive tornado struck Joplin, Mo., a town of 55,000 in the southwest corner of the state. The mile-wide funnel cloud had wind speeds clocked at 200 miles per hour. More than 160 people were killed and the storm created some $1 billion in damages. Like many other buildings in Joplin, the Medicine Shoppe Pharmacy was completely destroyed. Owners David Starrett and his wife Sheree, both pharmacists, assessed the damage and quickly went to work getting back to business. In this article, David Starrett describes how the pharmacy got back on its feet, and the steps he has taken to ideally minimize losses and enhance safety should another catastrophic event strike the town. The 1,500-square-foot facility my wife and I had opened 27 years earlier was in ruins.

4 electricity, and no working garage door. Our cell phone reception was hit and miss. I left my wife and daughter at home and proceeded to drive the mile north to 20th Street and try and find the Shoppe. Three check points later, I stood there, flashlight in hand, looking at total devastation. The 1,500-square-foot facility my wife and I had opened 27 years earlier was in ruins. The most vivid memory etched in my mind is one of silence. I saw many people walking the streets and sidewalks in absolute shock. The fire and rescue crews were already at their tasks. (Sadly, I would learn later that day that lightning had struck near the 20th Street and Connecticut command center and a volunteer from out of town had been killed.) For us, that night was just the beginning of what was the longest week of our lives. You see, we were open for business the following Saturday. How, you might ask? We were blessed with a multitude of caring people friends, family, business associates, employees, and fellow business owners. We were fortunate in so many ways, and the timing was so important. We did not allow ourselves to have a pity party. (Well, maybe just a bit on that first night.) By Monday morning, though, six people sat around our kitchen table, and we began to plot and plan. We were coming back, and it couldn t happen soon enough. PICKING UP THE PIECES As we were looking for a space to relocate, we found a 2,500-squarefoot building that had been vacant for about three weeks. As it happened, the owner of the building (where we ended up going) had his offices across the street from the pharmacy that we lost. He was digging himself out of the rubble as well. I went and asked him about the building on 32nd Street. He said it was ours if we wanted it. He told us to go ahead and change the locks and keys, and said, We ll do the paperwork later. So we did it on a handshake. Looking back, that was critical to reopening as soon as we did. Had we delayed even for a day longer, we would have been at a loss, like many others. I was also grateful to have some key people fellow pharmacists, people from our wholesaler (Cardinal Health), and a number of others. They kind of helped do my thinking for me, and that was big. On my own, with the enormity of the situation, I might not have thought about some of the things that needed to be done immediately. Having others to brainstorm with really helped keep tasks on track. I didn t think about that at the time, but reflecting back on it, that was huge. Another boost in our rebuilding efforts was securing a store full of fixtures from a fellow Medicine Shoppe pharmacist in Mexico, Mo., who had just remodeled and had extras to spare. He said the fixtures were free if we would come and get them. So some people from Cardinal went there, and within 24 hours arrived back in Joplin with a truckload of fixtures. Again, we were fortunate, as buying new fixtures would have taken much longer. By day two, we had made contact with our insurance carrier (Pharmacists Mutual Insurance Co.). They were already on the ground in Joplin as we were not their only client hit. I cannot stress enough how important it is to have adequate insurance. I had just enough to cover my loss. The agent took one look at the building, and handed me a check within a week for the building structure. You might think, Well, I don t think I need all of that insurance. You hope you never do, but if you do need it, it makes a huge difference to be fully insured. And there were some things that I didn t even know I had, such as loss of business coverage. We were only out of business for five days, but we were covered for the loss of business we would have had for those five days. The salaries for my employees were also covered, so they didn t have to go for a week without pay. Since then we have added coverage on our inventory, and we evaluate our insurance on an annual basis. If you work with a good insurance agent (and you should), that s something they are going to bring up, making sure you are up to speed on everything, because that will save you in the long run. As it worked out, the timeliness of my insurance coming through meant that I didn t have to borrow any money. Cardinal really stepped up. I bought some $200,000 worth of inventory on one order. They let me string out the payments for six months, and by that time I had received all of my insurance money. A good relationship with your wholesaler is very helpful; they certainly went to bat for me and made things happen. It took me two days to get my Drug Enforcement Administration license changed with the new address so I could go ahead and place orders. On a normal basis that could take three months. I had a disaster waiver from the state to dispense medication. COMPUTER BACK UP Luckily, all of our computer systems were under the pharmacy counter, and the counter withstood the brunt of the tornado, even though everything else was damaged. The CPU was perfectly okay, so I didn t need to use the backup. I just plugged it in, got some new workstations and new printers, and we were ready to go. However, I can t stress how important it is to use a secure, off-site backup. I can t imagine anybody not doing that. 23

5 Disaster Preparedness Tips David Starrett says there s no guarantee that you will be 100 percent immune from the effects of a disaster, but here are some steps he suggests to mitigate losses. Response Acting quickly is essential. You must absolutely understand that time matters. Recovery The sooner you respond and re-open, the better off your business and patients will be. Know Who to Call Insurance company Bank Consultants Other pharmacists Associations Board of Pharmacy Wholesaler Chamber of Commerce Patients (all of them) Common Sense Adequate insurance coverage is a must. Off-site computer data storage is essential. We back up every day off-site. Our store has three different computer systems linked together. I use three different off-site data storage companies, one for pharmacy data, one for everything else, and the last for my QuickBooks application. (I m glad I had that one as it was the only one I had to restore. I can t imagine losing all of my checkbook data.) Another point to make is that my accountant keeps copies of all of my tax and payroll records in his office as well, which is quite helpful. With the help of some of our customers, which included an electrician, cable/phone/internet manager, and a security specialist, things began taking shape. It helps when you know the people that you do business with. All of those folks bent over backward to get me open by Saturday, May 28. Everything fell into place. We worked long hours that week but the payoff was that we got our first prescription order on Saturday morning and filled our first prescription that afternoon. We didn t really miss a beat. Early in the week we had made arrangements with some fellow pharmacies in the north and south of Joplin to take care of our people while we were down. Even though not affected directly, these pharmacists worked long and hard taking care of so many. Six pharmacies were totally were wiped out. Our new location is 2,400 square feet. My wife and I are the two pharmacists, and we have four full-time technicians and two local students who work parttime. We dispense about 300 prescriptions per day, which is about the same as before the storm. We have since added a drive-thru to this location. Fortunately, the building and the parking lot was situated in a way that allowed us to do that fairly easily. SAFETY STEPS Since the tornado we ve added a safe room in the pharmacy. It s located in my office. It consists of quarter-inch steel that is connected together and bolted into the cement floor. It also has air vents for circulation. We didn t have room for an external facility, so the company we used installed it inside the store. No matter what kind of building you have, there are enough different companies that make these things, and in a variety of formats. My dentist rebuilt his entire building as a safe room. We can probably fit about 20 people into ours. It would be a tight fit, but for a few minutes I don t think anybody would mind. We paid about $6,500. I put one in at my home in a closet in my garage, and it cost less than $2,000. I don t think the cost was exorbitant. We had four technicians who lost their homes, so that was a traumatic experience. They were at home when the tornado came through, so installing the safe room was as much for them as it was for me. Ideally it also provides peace of mind for patients, to let them know that we are prepared. I just thought it was an important thing for us to do. Many retail businesses have done the same thing here in the Joplin area. I had never thought of it beforehand. We had a disaster plan, but frankly it wasn t on the front burner. Certainly, having gone through a disaster, you think about it a little more. It s kind of like being robbed. You don t think about it until it happens to you, and then you think about it a lot. Hopefully we ll never have to endure anything like this again, but if there is a next time we ll be more prepared. We have a flat screen TV that we use for educational purposes, but when there s stormy weather it s on the Weather Channel. We try to keep tabs on things that way. There have been a couple of times in the last few years after hours at the house where we have gotten into our tornado shelter because the alarms were going off. 24 America s PHARMACIST February 2015

6 We don t do disaster drills, but have staff meetings monthly where emergency plans are reviewed. We do have discussions about various scenarios about what to do, where to go, and how to react based on the situation. Just about everybody who is working for me now was affected in some way. We know if something happens, it s a matter of seconds and not minutes, so you have to be prepared. From the southeast corner of the store, we can see weather coming. Almost everything is going to come from the west or southwest toward Joplin. So that s why we have the TV and can pull up radar on terminals. If there is a watch or warning out, we re watching and waiting, and if something is coming we are going to be safe and take care of our employees and customers who might happen to be there at the time. Usually when there s a storm warning people stay home, and that makes good sense. RECEIVING AND GIVING Donations from around the world poured into Joplin. Some dollars made it our way. It wasn t a whole lot, but we gave that to our employees. It felt like the right thing to do. Without them, our business could not survive. Many people asked, How can we help? A friend who is one of my long-time customers suggested that I let him and his wife call all of our customers to let them know about our new address and that our business was up and running. I asked him, Do you know what you re saying? But over a three-week period, that precious couple called everyone they could. I gave them a call list of more than 10,000 names. (NCPA advises that pharmacy owners work with legal counsel to have a plan to protect patient plan privacy even in emergency situations like this.) Reflecting back on our yearly sales figures for 2011, we did not lose much. Actually, total sales were only off in the dollar amount reflected by the week were closed. That was a blessing. We were worried if customers would return. Return they did, with so many thanking us for opening so soon. What an encouragement for us. As time has passed, even though we moved about a mile south of our 20th Street location, our business has grown. I am reminded of one fact I learned early on as a small business owner: If you take good care of your customers, they will take care of you. This phrase certainly holds true for us. We have been blessed with an amazing group of people to take care of. We are honored to serve our patients, customers, friends, and neighbors. I believe this holds true for every small business, regardless of where you are, but especially here in Joplin, where we have a wonderful chamber of commerce. They work so hard to tie us all together. In this respect we are bonded at the hip with so many as we manage our way going forward, knowing we are survivors. We have a tale to tell. David Starrett, RPh, and wife Sheree Starrett, RPh, have owned a Medicine Shoppe Pharmacy in Joplin, Mo., since

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