The Customer

Nearly 30 years ago, Nicky Otts, chairman and CEO, established the genesis for ReCept Pharmacy in Fort Worth, Texas with Plaza Pharmacy on 8th Avenue. ReCept now owns and operates 16 pharmacies throughout the state. From its initial beginnings in Fort Worth, ReCept Pharmacy has grown to include locations in the Dallas/Fort Worth Metroplex, San Antonio, Corpus Christi, Houston, Waco, El Paso and Conroe. What was once, and still is, a pharmacy striving to do the best possible job of meeting its customers' needs has become a healthcare prescription services company with several locations conveniently positioned within doctor’s offices and physician group practices. The four main areas of emphasis for ReCept Pharmacies are chronic pain, HIV/AIDS, hospice and specialty compounding.

The Decision

From the opening of H. D. Smith’s Texas Division, Otts has partnered with H. D. Smith to meet his wholesale needs as ReCept has grown from a single store to a growing and thriving chain. Over this long history together, Otts states that a major factor in his decision to stay with H. D. Smith is the personal service he continues to receive even after years of partnership. Otts indicates, “We would probably get lost in the mix if we were a client of some other wholesaler. It’s nice to know that I can pick up the phone and talk to just about anyone at H. D. Smith, whether locally or at the home office.” He continues, “If we ever run across a service issue, we get very quick responses to our needs. We have some unusual requests from time to time due to the nature of our business and H. D. Smith is quick to supply those needs whether from a local distribution center or from Smith Medical Partners (H. D. Smith’s specialty distribution unit).” In reflecting upon his decision to stay with H. D. Smith for many years, Otts states, “The whole personal service piece is so important.”

The Response

ReCept’s business deals heavily with controlled substances making it crucial to stay abreast of regulatory requirements. Otts has been pleased with H. D. Smith’s commitment to providing information that allows him to be compliant. “From the regulatory side, I feel H. D. Smith has been more than open with us in helping us to understand the regulatory environment from a wholesaler perspective and how it relates to our retail business. The H. D. Smith team has been great in helping me understand what are “red flags” and areas of concern because it helps me understand how it affects my business,” reports Otts. 

Additionally, Otts indicates his satisfaction with H. D. Smith’s response to ReCept’s growth by providing the technology solutions necessary for a chain operation. “Our experience with H. D. Smith’s technology has been positive. H. D. Smith’s technology staff has worked with us as we have improved our in-house technology for central office capabilities. They have been helpful in obtaining and exchanging information back and forth.” He continues, “In a multi-store organization, and the larger we become, the more important that is to us.”

As the ReCept chain of stores has continued to grow over time, Otts has valued H. D. Smith’s efforts to help him to expand his business. “H. D. Smith has been helpful in the past of helping us locate acquisition targets and we have a good, ongoing dialogue with the H. D. Smith sales force of letting us know when they encounter a pharmacy that might be looking for an exit strategy.” He also appreciates H. D. Smith’s efforts to ensure the new store is up and running smoothly. “When we have a new store opening, H. D. Smith folks have been very helpful with getting the store open as there always seems to be a crunch at the last minute. They are great at pitching in and helping us open the store.”

The Future

Nicky Otts has outlined aggressive growth plans for his increasingly prominent Texas-based chain of stores. In addition to owning and managing its own pharmacies, ReCept also manages pharmacies for other owners, primarily physician owner groups. Otts indicates plans to grow the pharmacy management side of his business by at least one account per year. Additionally, beginning in 2010 and for subsequent years, ReCept anticipates strategically opening five new locations per year. Reflecting upon the past, Otts indicates, “As we have grown from the single store I started years ago, it has been a positive experience of growing together with H. D. Smith. As we have grown, so has H. D. Smith and it has been an enjoyable experience.” H. D. Smith shares that sentiment and is committed to helping ReCept continue to grow into the future.