Say goodbye to private pharmacies in usa

allen levine

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new york city burbs
first off, just let me say this isn't politically motivated, just an observation.
second, I worked in a private pharmacy for 33 years, owned it for most of those.
We were a small community pharmacy, had our own little niche, catered to what the locals wanted, and I have no complaints about my run in that business.


I now have coverage on my wifes medical plan.
Its a solid plan, what I always considered a top plan.

I went in yesterday, first time this year for my monthly prescriptions.

My first drug, one for diabetes, for a 90 day supply(the insurance company lets me get 90 day supply of drugs, has a slightly less copay for me) the cost of the drug was a bit over 800 dollars to the pharmacy, with his fee, he lost almost 2 dollars dispensing it to me.
My second drug, for cholesterol, another 90 day supply, and another drug close to 900 dollars, he lost a dollar on it.
My third drug I got yesterday, for hypertension, a very mild dose, cheapest generic drug, another 90 days supply, the copay was 2.82, and the last time I got it was 5.00
2.82 was the total the pharmacy collected. this includes the fee, the cost of drug, and the electronic processing fee, cost of vial, label, etc....
Maybe he profited 1.00 or so.

Pharmacists earn 45-60 dollars an hour.

Rents are ridiculous, and top that off with liability insurance, electric, blah blah blah, this is the end of private pharmacy.

It might be the only business on earth that is expected to purchase goods for 1000 dollars and not make a profit on it.

The doors will be closing soon on whatever privates are left.

If they don't own their real estate, none will make it.
 
So the big chains use their buying power to get cheaper prices on drugs? The big Walgreens, CVS, RiteAid types also sell a huge variety of other merchandise that may offset low drug profits. I have all three within a few miles and their parking lots always have lots of cars in them. Probably another reason an independent can't compete.
 
I'm just waiting for Amazon to start doing pharmacy and get free shipping to my door so that I can put all those chains out of business. ;)

I've had a small hardware store about a mile from my house that I had often overlooked and drove the 4 miles to lowes instead. I've started going to them first and getting what I can. I just did a google and not even an individual pharmacy in our area, closest is 16 miles away in a small town south of us, the rest are either at the grocery stores or chains.
 
the big chains own their own insurance companies, they handle payment for a lot of plans. they set the prices.
and yep, they keep themselves in business with all the over the counter sales.

they open many stores in NY in the same zipcode, sometimes 2-4 stores, looking to knock out all the competition, then I guess eventually they will close one or two of them.

my wife and I go to pt pleasant NJ each year during the winter months. We love the beach in the middle of the winter. Just for a walk, a day out of thehouse.

when you drive down the main drag into Pt Pleasant, NJ there is a huge chain pharmacy, fairly new. 2 blocks away, the same chain has an older store. Last winter in the middle of a snowstorm, cold weather, we walked into the older chain and there was one kid working this huge store.
I asked him why does his company keep this one open when there is a newer larger one a block away.
He told me they don't want to the competition to rent this space and open a store, so its worth it to them to keep both of them open.
 
You know, if they added gas pumps they would put serious pressure on all the Quick Stop's, 7-11's and WaWa's. Our Farm Fresh grocery store added gas pumps. Now by shopping at Farm Fresh gets you discount points on their gas. If the grocery stores can do it, can the big drug stores be far behind?
 
Well Ted in July in Canada the big grocery chain Loblaw just bought one of the largest drug store chains Shoppers Drug Mart. The only grocery group (if you can call them that) that has all three covered is Costco in Canada. They have pharmacy, optical, gasoline, cigarettes, propane and normal groceries that Costco stocks all covered. Only vice they missing is the beer and wine and liquor but in Ontario that aint gonna change until we have a revolution against gouging.
 
Well Ted in July in Canada the big grocery chain Loblaw just bought one of the largest drug store chains Shoppers Drug Mart. The only grocery group (if you can call them that) that has all three covered is Costco in Canada. They have pharmacy, optical, gasoline, cigarettes, propane and normal groceries that Costco stocks all covered. Only vice they missing is the beer and wine and liquor but in Ontario that aint gonna change until we have a revolution against gouging.

well here in Arizona they sell booze also so they gt em all covered. Heck they even sell caskets.
 
My cousin is a pharmacist. He is the District Manager for RiteAid in Los Angeles with over 20 pharmacy stores under him. He always tells me that independent pharmacy business is very profitable in Los Angeles.:dunno: I also know a couple who run their own pharmacy in the greater SoCal and they are doing good too.
 
... the big grocery chain Loblaw ...
My first paying job was with Loblaws in Syracuse NY. Worked there from the time I was 16 until I graduated from college. That job paid my tuition. I recall those times fondly. I can still bag and run a register faster than the kids at our market....maybe that could be my retirement job!
 
My cousin is a pharmacist. He is the District Manager for RiteAid in Los Angeles with over 20 pharmacy stores under him. He always tells me that independent pharmacy business is very profitable in Los Angeles.:dunno: I also know a couple who run their own pharmacy in the greater SoCal and they are doing good too.

theres always going to be those stores with their spot.
its clear to see private owned pharmacies are thinning out quickly.
In NYS, schooling is now 6 years and at the end the student gets a phd. ONe can earn 125 out of school, why go into a private business and torture yourself.

I find it hard to believe anyone can claim independent pharmacy is a profitable business. Unless you have an 8 thousand sq foot store with low rent, its a very competitive business with low profit margins, especially now, with the low insurance payments, and the welfare payments being much lower than just a few years ago.

I haven't seen an independent open in my area in 10 years. Plenty of chains keep opening, not a single independent.

Id think taxes are just as high in LA, as well as insurances and everything else.
 
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@Glen. They do. Even outside of Vegas but in Nevada. Grocery stores, min-markets, hardware stores, everywhere. And there is one employee who monitors that area and does nothing else. Only place I did not see them was at the borgs.
 
You are right, Allen. Doing business of any type is pretty costly in California. In 23 years that I have lived in Los Angeles, I haven't seen any new independent pharmacy open up where I live but then again I haven't seen any of them shutting their doors down either. Since my cousin is a Pharm Doc and a ditrict manager at RiteAid, he is making a lot more than a fresh out-of-school pharmacist. Yet, he often talks about opening his own pharmacy. Maybe situation is different in NYC.:dunno:
 
tell him to save his money and enjoy his time/position with riteaid. Never thought Id say that in 100 years, but its clear to me where pharmacy is headed.
a lot of privates are holding on by a thread.
chains wont aquire them, its just easier for them to force them out of business.
a lot of privates have made their money, and hold on working for less then they would get at a chain.
Out of maybe a dozen or so people I went to school with and always stayed in touch with, some close friends, some not, not one of them still own their store.
 
... force them out of business...
Near us the three big pharma's have saturated the area and in some places are less than a mile apart. In addition, almost all the grocery stores have a pharmacy. Even with the wave of boomers retiring, I wonder if there is sufficient market to support all three big guys. Maybe there will soon be only two...like Sam's and Costco and Lowe's and Home Depot?
 
its not just independent RX shops its happening in other areas as well,, we have become our own worst enemies,, we go for price and not quality or loyalty... our grand parents would roll over if they could see us now.. and our kids are in for more of this down turn..
 
loyalty is what kept my business going.
I had grandchildren of regular customers coming in with their newborns, 3,4 generations.
when I closed, retired because of illness, I had to apologize to many customers, they were a bit upset with me.

Noone can walk into a chain store and ask the boss if they could speak with him a moment, then pour their guts out how they just got laid off and would I float them their purchases until they get their first check, or govt assistance. Proud people, people who found it difficult to ask, to be in such a bad position. I never refused a loyal customer, even took some losses now and then, but I was a real community pharmacy, something that the chains will never be. ever.
I miss it, but know its best I retired.

ofcourse, there are always plenty of unscrupulous business owners that drive people towards big corporate stores.

my mother once told me a story about when she was a young woman, a teenager, she worked in a mom and pop grocery store in Brooklyn ny.

the owner kept a broom leaning against the counter, and every time a customer would ask him to charge their groceries, hed add on the broom.
He figured if they ever questioned him, hed just say, oh, I thought you purchased the broom.
My mother claims he put his two children through college with that broom.
She needed the job.
 
I went in yesterday, first time this year for my monthly prescriptions.

My first drug, one for diabetes, for a 90 day supply(the insurance company lets me get 90 day supply of drugs, has a slightly less copay for me) the cost of the drug was a bit over 800 dollars to the pharmacy, with his fee, he lost almost 2 dollars dispensing it to me.
My second drug, for cholesterol, another 90 day supply, and another drug close to 900 dollars, he lost a dollar on it.
My third drug I got yesterday, for hypertension, a very mild dose, cheapest generic drug, another 90 days supply, the copay was 2.82, and the last time I got it was 5.00
2.82 was the total the pharmacy collected. this includes the fee, the cost of drug, and the electronic processing fee, cost of vial, label, etc....
Maybe he profited 1.00 or so.

Sorry to not address any of the replies on this thread, but your Original Post is striking.

Are you really on two drugs that are $10/day each? I understand your post is about the future of the pharmacy business, but $600/mo for drugs is madness. Absolute madness.
 
Sorry to not address any of the replies on this thread, but your Original Post is striking.

Are you really on two drugs that are $10/day each? I understand your post is about the future of the pharmacy business, but $600/mo for drugs is madness. Absolute madness.

these diabetes drugs and cholesterol drugs are very common.
most people who have insurance and never pay more than a copay for drugs, are a bit shocked when they learn the price of their drugs.
 
these diabetes drugs and cholesterol drugs are very common.
most people who have insurance and never pay more than a copay for drugs, are a bit shocked when they learn the price of their drugs.

My 20mg Lipitor would cost $208.00 per month without insurance. (Cholesterol Drug)

Tradgenta 5mg costs $277.00 per month without insurance (Type II Diabetes Drug)

So, to answer David's question - yeah, it's madness, but it's also essential to life for some of us.

For what it's worth, with my insurance, the Lipitor (generic Avorstatin) is 'free' and the Tradgenta costs me a $17.00 copay.
 
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