Challenging the Myths: The Truth About Hub and Spoke Dispensing in Pharmacy
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Centred Solutions Director of Sales & Marketing, Louise Laban, challenges the myths and shines a light on the realities of what hub and spoke dispensing can offer, especially for independent pharmacies and small groups.
Myth 1: It’s All About Saving Money
One of the most widespread misconceptions is that hub and spoke dispensing is simply a cost-saving initiative. While efficiency can lead to better resource management, the true value of hub and spoke lies in freeing up in-store capacity. This enables pharmacies to focus more on delivering clinical services - a key priority under the latest funding contract. It also provides the opportunity to deliver more private services as a key revenue generator for pharmacies.
Myth 2: The Only Option for Independent Pharmacies is to Outsource
It’s often assumed that only the largest chains can adopt a hub and spoke model without relying on external providers. However, at Centred Solutions we’ve identified four business models that demonstrate viable options for independents and small groups:
- Establish your own hub - You don’t need to be a large pharmacy group to benefit from central dispensing. Pharmacies with as few as 3 pharmacies can benefit from centralising their purchasing and repeat prescription assembly.
- Intra-Group Model - Pharmacy groups operating under multiple legal entities or with shared pharmacy directors can operate a hub and dispense across all their pharmacies, regardless of legal structure.
- Managed Service Model - Pharmacies that already have a hub, or plan to establish one, can offer dispensing services to other pharmacies outside their group for a service fee.
- Joint Venture Co-operative - Multiple independent pharmacies can collaborate to establish a jointly owned hub that serves their group and optionally offers dispensing to others.
We will be talking about these four models of hub and spoke at this year’s Pharmacy Show. Visit us at stand B30 or attend our talk in the Pharmacy Owners Forum on Sunday, October 12 at 11.50am.
Myth 3: You Need to Process Over 250,000 Items per Week to Make a Hub Viable
This simply isn’t true. Viable hubs currently in operation are successfully processing as few as 30,000 prescriptions per month. The key is choosing the right model and scale that aligns with your business.
Myth 4: Hubs Require Massive Capital Investment
While setting up a large-scale hub can be costly, hub solutions today start at just below £80,000, with the majority achieving a return on investment within two years. That’s a far more accessible entry point than many assume.
Myth 5: Longer Wait Times for Patients
There’s a fear that centralising dispensing will delay medication delivery. In fact, most hubs we work with operate next-day turnaround as standard. Many patients receive their medication faster than they would through traditional in-store dispensing.
Myth 6: Pharmacies Lose Visibility of Prescriptions
Not anymore. Today’s hub and spoke software provides complete prescription visibility throughout the process, even allowing the spoke pharmacy to recall prescriptions for local dispensing when needed. Transparency and control are fully maintained.
Myth 7: Only 40% of Items Can Be Hub-Processed
Another misconception. The reality? Modern pharmacy hubs are processing up to 80% of repeat prescription items and 60% of overall items, dramatically increasing operational efficiency without compromising patient care.
The Bottom Line
Hub and spoke dispensing is not a one-size-fits-all model and it’s certainly not just for big players. With scalable, flexible, and affordable options available, this model is a realistic and strategic choice for pharmacy groups of all sizes.
By moving past the myths and understanding the genuine possibilities, pharmacy businesses can embrace a future that enhances both operational efficiency and clinical care delivery.
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