As major drugstore chains and independent pharmacies continue to shut down across the U.S., many communities are experiencing a rise in "pharmacy deserts," where access to medications and healthcare services is limited, CBS News reported Dec. 6.
Here are five notes:
- At least 7,000 pharmacies have closed since 2019, with roughly half of those being independent drugstores. This has led to the emergence of pharmacy deserts, particularly in rural areas, according to CBS News.
- Marianne McElveen, owner of Kempson Rexall Drugstore in Inman, S.C., told the news outlet that reduced reimbursements and high medication costs have led to profit margins as low as 3% to 5%. Many independent pharmacies are unable to cover the cost of expensive drugs, which exacerbates their financial challenges. Ms. McElveen said despite having a loyal customer base, the store has had to reduce operating hours to stay afloat.
- Major retail pharmacies, including Walgreens, Rite Aid and CVS, are scaling back operations. Walgreens announced plans to close about 1,200 stores over the next three years and Rite Aid filed for bankruptcy, shutting down 500 locations. CVS is closing 900 stores as part of a phased approach.
- The closure of thousands of retail pharmacies is worsening the issue of access to essential medications in underserved areas. Lori Trudell, PhD, an assistant professor of entrepreneurship at Clemson (S.C.) University, described the situation as a crisis.
- Low reimbursement rates for prescription drugs are one factor driving the closures. According to a survey by the National Community Pharmacists Association, 99% of independent pharmacies have faced reductions in reimbursements, with many being forced to reduce inventory or use personal savings to stay open.