A struggling company next door is the reason SoftWriters Inc. discovered a niche that has helped it thrive while other businesses have struggled during the economic downturn.

"The recession hasn't had as dramatic an impact here," said Tim Hutchison, vice president of the Hampton pharmacy management company.

	Tim Hutchison, left, with Senior Programmer Lisa Miller at SoftWriters Inc.'s Hampton offices.
Photo by Bob Donaldson/Post-Gazette

SoftWriters provides software that helps more than 200 closed pharmacies - as opposed to retail pharmacies -- maintain medical records for patients living in nursing homes and other long-term care facilities.

Closed pharmacies are not open for walk-in retail business and fill prescriptions for facilities that care for patients, such as nursing homes. While such pharmacies fill thousands of prescriptions at a time for many patients, retail pharmacies - such as Walgreens and Rite Aid - fill prescriptions one at a time for individual customers.

"It's been exponential growth since 2000 when we got into this," Mr. Hutchison said. "In fact, we slowed down our growth in 2008 by design because we were outpacing our resources. We couldn't keep up with our own growth."

Founded in 1990 by Mr. Hutchison's father, Earl Hutchison, SoftWriters started with the intent to be a custom software solution provider to the business community in general. The company developed a successful niche market working with ADP, the largest payroll company in the country.

But along the way, the company discovered the long-term care pharmacy industry.

"We entered into the pharmacy space in 2000, so as that business took off and the payroll business kind of remained flat, we decided it was time to make a change," Mr. Hutchison said.

"The pharmacy software business was taking off like a rocket ship, and we decided at that point to let go of payroll in 2004. We've been doing pharmacy ever since."

Today, the 23-employee business is owned by Mr. Hutchison, his father, his mother and a sister, who no longer is involved in day-to-day operations.

"There is a growing number of senior citizens moving into either nursing homes or assisted living centers where there is a demand for prescription drugs," said Fred Rock, a partner with Focus Investment Bankers, Downtown, who is familiar with the company and its management.

"SoftWriters has one of the best reputations in the industry for providing software. Therefore, they continue to grow as the number of these facilities continue to grow, even though this is a poor economy."

In eight years, SoftWriters has grown to be the second largest vendor in the closed pharmacy software market.

There are about four major national competitors, Mr. Hutchison said, and several others with about 1 percent or 2 percent of the market. SoftWriters claims about 20 percent to 23 percent of the national market.

"I think probably in five years we will be doubling the size of the company again," Mr. Hutchison said. "That's sort of our projection."

Going public, however, is not a goal at this time.

"At this point, there's not enough volume to even consider a public move. And I think it works out well being privately held. We can be more nimble that way."