Fred Bencivengo, Sr. Director, Retail Pharmacy Operations, Giant Eagle, Inc
Fred Bencivengo, Sr. Director, Retail Pharmacy Operations, Giant Eagle, Inc
As the Senior Director of Retail Pharmacy Operations at Giant Eagle, Fred Bencivengo brings extensive experience in navigating the evolving landscape of retail pharmacy. Over the years, he has led large-scale initiatives, including major acquisitions and operational transformations, while maintaining a focus on patient care and community service. His leadership reflects a deep understanding of the challenges facing pharmacies today, including rising costs and shrinking margins, as well as the opportunities emerging from digital health, AI, and expanded clinical services.
In an interview with CIOReview, he shared insights into what it means to be a leader during periods of change, the facts behind operating a pharmacy business today, and how to prepare for the future.
Leading Through Volume Surges and Margin Pressures
No two days in retail pharmacy are ever the same. Recently, much of my time has been focused on dealing with the effects of Rite Aid closures. Over the last few months, we have acquired a number of their files, with the initial priority being to get patients into our system, process the influx of prescriptions, rework stores, and hire personnel.
Since the last three months, my days have been filled with juggling this peak in volume and the ripple impact it has had throughout our operations. Within three and a half weeks, we had to step up to the challenge. It was testing and draining for my staff and me, yet we were able to quickly adapt and keep patient care at the forefront of everything we did.
The challenges that pharmacies have faced for decades have not changed significantly over the last few years. We are dealing with rising wages for pharmacists and technicians, while at the same time, margins are shrinking. Contracts continue to deteriorate, reimbursements are declining, and the introduction of new branded drugs adds even more pressure to margins, sometimes resulting in negative reimbursements. The challenge is to remain in business while continuing to deliver the care patients need.
Turning Points in Innovation and Technology
Even with all the barriers, there is still hope. Technologies in retail pharmacy are opening the door to greater efficiency and better patient relationships. Artificial intelligence (AI) and digital health are going to fundamentally alter how we work.
At a recent trade show that I visited, AI was the buzzword, generating the same type of interest that the “food is medicine” phenomenon created. Pharmacies are currently actively seeking where AI plays a role in their business.
To survive and prosper, pharmacies must expand their role and capitalize on the opportunities presented by diversification 
Its potential is to free up staff from mundane tasks, better manage phone calls, replace old interactive voice response (IVR) systems, and build improved customer interactions. How specifically AI will redefine retail pharmacy is uncertain, but it will be felt, just as it is in every other industry.
We have also led massive projects that have already reshaped our operations. The acquisition of Rite Aid is the largest project we have ever undertaken. So far, we have purchased a large number of files, which means that some shops habe grown rapidly almost overnight. All aspects of the company contributed, including pharmacy, construction, remodel, HR, and recruiting. We were moving files at a rate of four or five stores a night, without having the months of lead time that we would typically have. It was a huge undertaking, and while there is still much to do, today we are in a significantly better position than we were when we initially began.
Even in comparison to the magnitude of our COVID vaccination work, which was huge in its own right, this project is the most proud moment of my career. During the pandemic, we operated mass clinics out of a football stadium, administering 1000s shots per week. That was amazing in itself, but the Rite Aid integration took us even higher and demonstrated how well we could recover.
The Future of Pharmacy and Leadership Guidance
Consolidation will continue to be one of the largest drivers in the retail pharmacy sector unless there are drastic changes to the reimbursement scheme. Margins will continue to be greatly dependent on brand and generic mix. Generics offer better margins, while brand-name medications typically come with higher costs, particularly for newer therapies like GLP-1s.
Independent pharmacies are being especially pinched, with some choosing not to fill some brand-name medications because the losses are just too substantial. That usually sends patients and prescriptions to larger chains, such as Giant Eagle, which must absorb challenges that smaller operators cannot.
Even with our volume and size, these pressures are real. Without system changes, additional closures throughout the industry are virtually unavoidable.
My recommendation to anyone building a career or pursuing leadership in retail pharmacy is to diversify their skills. I still encounter independent owners who choose not to provide vaccines, and that is an error. Vaccinations are a major opportunity for retail pharmacies to serve their communities and remain relevant. The era when pharmacies could get on with “putting pills in bottles” is gone. To survive and prosper, pharmacies must expand their role and capitalize on the opportunities presented by diversification.