Independent pharmacy market faces challenges, stores closing across the country
Independent pharmacies are closing across the country, making it harder for people to access potentially important medications.
Today, 46% of U.S. counties are considered pharmacy deserts, meaning people have to drive more than 15 minutes to reach the nearest pharmacy from their homes, according to GoodRx Health.
The farther away a pharmacy is from where someone lives, the less access they have to affordable, in-stock medications, and it can be harder for a doctor to refill a prescription.
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Sonja Pagniano, the Executive director of the National Community Pharmacists Association (NCPA), said part of the problem is because of pharmacy benefit managers (PBMs). Those are companies that negotiate prescription drug costs and insurance payouts, sometimes leading to lower reimbursements for store owners.
"The way that reimbursements are happening, they have no good way necessarily to make money-make revenue to stay open," Pagniano said. "A lot of these independent pharmacies, they are serving very small communities- they are often the sole provider within a 5-10 mile radius."
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In 2023, about one independent pharmacy, closed every day, and similar numbers are expected for this year according to the National Community Pharmacists Association. Some major chains are also closing stores, according to NCPA.
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"Independent community pharmacies, we have already been tracking that ourselves. But that paired now with these larger chains especially- it's really harmful for communities. It's expanding pharmacy deserts at a rapid pace," Pagniano said.
Pagniano said most of the independent pharmacies are struggling due to the need for PBM reforms and better reimbursement rates but some are still struggling to fill open positions in their pharmacies as well.
Kristin Holmes said she and her husband bought locally owned store Capitol Heights Pharmacy in Denver more than a decade ago. Holmes said it has been hard to find Pharmacy techhnicans to hire.
"I think a lot of that has to do with some of the workplace conditions that are happening around our state and around the nation," Holmes said.
Holmes said COVID-19 pandemic, the industry demands can still be stressful.
"Pharmacists are being overworked and don't have time to take lunches or take bathroom breaks."
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"Patients see us behind the counter and it may not look like we are doing a whole lot, but there's a ton of things on the counter. We are constantly fielding questions from patients, from doctors," Holmes said.
According to one industry group, independent pharmacies make up nearly 40% of all pharmacies in America.