The closure of hundreds of pharmacies by major chains such as Walgreens and Rite Aid could signal a growing crisis in the industry, the executive director of the Ohio Pharmacists Association has said.
Rite Aid recently shut down stores in Ohio and Michigan as a part of its bankruptcy restructuring, and shortly after, Walgreens announced plans to close a significant portion of its 2,000 stores over the next three years, the Ohio Capital Journal reported Sept. 9.
The pharmacy closures follow a broader trend of hundreds of small-chain and independent pharmacies in Ohio closing over the past decade.
Ohio Pharmacists Association Executive Director David Burke and other leaders point to pharmacy benefit managers as a key factor in the industry's struggles. PBMs, which control about 80% of the market, decide how much pharmacies are reimbursed for drugs they dispense. Critics said PBMs including CVS Caremark, OptumRX and Express Scripts are operating in a system that creates conflict of interest, the Journal reported.
A CVS pharmacy spokesperson told Becker's, "Our PBM, CVS Caremark, is leading the industry toward a more sustainable future, one that keeps community pharmacy at the center of people's health. … Independent pharmacies are vital partners in CVS Caremark's pharmacy networks and represent more than 40% of our in-network pharmacies."
The spokesperson added that CVS Caremark "will continue to reimburse pharmacies at significantly higher rates than chain pharmacies."
As pharmacies continue to shut down, Mr. Burke also expressed concern about patients having a difficult time accessing medication or a nearby pharmacy.
A Walgreens spokesperson told Becker's the company is "pleased to have acquired prescription files and related pharmacy inventory from many Rite Aid locations in Ohio. … Patients and customers do not need to take action as their pharmacy files will automatically transfer to a nearby Walgreens."
Rite Aid did not respond to Becker's requests for comment.