Pharmacy Grads Have Pick of Offers as Drugstores, Clinics Fill Vacancies

Dawn Hoeft had her pick of job offers before she graduated Saturday from the University of Minnesota’s pharmacy school.

Hoeft was wooed by half a dozen recruiters from drugstore chains and hospitals and considered four positions.

“My first job out of college was pretty hard to find,” said Hoeft, 41, who went back to pharmacy school after 13 years in technology jobs. “Now the shoe is on the other foot, and it feels pretty good.”

While many industries are letting workers go, this year’s more than 8,000 pharmacy school graduates are just about guaranteed jobs, said Will Lang of the American Assn. of Colleges of Pharmacies.

As of January, chain drugstores had 6,503 vacant pharmacy positions, offering starting salaries averaging around $79,000. Thousands more positions are available at hospitals, clinics and elsewhere.

“There still is a pharmacist shortage and will be for years to come,” said Mike DeAngelis, a spokesman for CVS Corp. CVS and competitors such as Walgreen Co. are using incentives such as stock options, signing bonuses and relocation packages to lure pharmacy students to new jobs.

Americans are living longer and using more prescription drugs. Consumer advertising, increased prescription coverage and new drug therapies have added to pharmacists’ workloads.

The number of prescriptions dispensed is expected to increase 26% to almost 4 billion in 2005 from 3.01billion in 2001, according to the National Assn. of Chain Drug Stores.

The number of new pharmacists is expected to increase 3.9% by 2005, the association said.

One reason for the shortage of pharmacists is that pharmacy students are spending more time in school.

A committee of pharmacy schools and professional organizations decided in the mid-1990s that for pharmacists to work in more diverse areas, such as clinical sites, they needed more education, said Lang of the pharmacy college association.

Instead of spending five years earning a bachelor’s degree, students now study six years for a doctor of pharmacy degree. Students can still get a bachelor’s degree, but starting in 2004 they won’t be able to take a state-licensing exam without the doctorate. “They have to be licensed to dispense drugs,” Lang said. Current pharmacists don’t need a doctorate.

According to a report from the American Hospital Assn. in April, 46% of hospitals have a shortage of pharmacists.

About 60% of all graduates choose to work at chain drugstores instead of taking jobs with clinics, hospital pharmacies or state governments because the starting pay is higher, Lang said.

“Students can easily come out of school with $80,000 in debt,” Lang said. “Somebody that’s offering you a $70,000-to-$80,000 job is a lot more attractive than a $40,000-to-$50,000 job with more patient contact.”

The nation’s pharmacy schools also haven’t been able to accommodate the interest in the profession. Of the 26,256 applicants for first-year pharmacy spots in 2001, only 8,922 were accepted.

“The problem is our schools are having a difficult time trying to figure out how to expand their class size, especially if they’re going to ask people to stay a year longer,” Lang said.

Pharmacists are in such high demand that graduates are being offered perks that include signing bonuses, matching 401(k) programs and relocation packages.

In the first year, a graduate can earn an average of $79,100 at a retail pharmacy, according to a survey commissioned by trade publication Pharmacy Week. A seasoned pharmacist “doesn’t make a lot more than that, and that’s part of the problem,” said Lucinda Maine, senior vice president of the American Pharmaceutical Assn. “People start off high but don’t necessarily grow fast.”

Hoeft, the graduate, said her offers ranged from $40 to $45 an hour, in addition to signing bonuses and a company car. Companies recruited by sponsoring dinners and calling students, and one even sent care packages during finals, she said.

She accepted a position with Fairview Pharmacy Services in Minneapolis, where she’ll be able to talk to patients about their therapy goals. “I did have higher incentive offers,” she said. “But I got a $5,000 signing bonus and a good hourly rate. Pharmaceutical care was the selling point.”