Study Reveals Almost One Third of US Pharmacies Shut Down in Ten Years

December 4, 2024

Updated: December 4, 2024

WASHINGTON — ‍Recent studies have revealed a concerning trend in the United States: nearly 30% of U.S. pharmacies that were operational in⁣ the last decade have shut their doors by 2021.

According to the research, communities with predominantly Black⁤ and‍ Latino populations were the most affected by ⁣these closures. The disappearance of these retail pharmacies further limits the already scarce healthcare options in⁢ these areas, as stated in a study published in Health Affairs on Tuesday.

The situation‌ may have worsened since the study was‍ conducted, as many pharmacies continue to face financial difficulties. In the past three years, leading chains such as Walgreens and CVS have closed hundreds of stores, while Rite Aid has downsized during its⁤ bankruptcy reorganization.

Pharmacies are grappling with reduced reimbursements for prescriptions, escalating costs, and evolving consumer shopping behaviors. As a result, these chains‍ have been forced to shut down unprofitable stores and transfer prescription files to more lucrative locations.

The study discovered that over 29% of the approximately 89,000 retail U.S. pharmacies⁣ that were in operation between 2010 and 2020 had closed by 2021.⁤ This equates to over⁣ 26,000 stores.

Researchers, utilizing ‌data from the⁢ National Council for Prescription Drug Programs, found that ⁣the number of U.S. pharmacies had actually increased from 2010 to 2017 due to new store openings. However, the rate ‍of closures accelerated from ⁣2018 onwards.

The study also identified the types of stores that were⁢ more likely to ⁢close. Independent pharmacies, which were more likely to ‍be located in Black, Latino, and low-income ‍neighborhoods, were particularly vulnerable.

Pharmacies in areas with a higher proportion of patients‍ relying on government-funded Medicaid and Medicare were also more likely to close, according to Dima Qato, a pharmacy professor at the University ⁢of Southern California and ⁢the study’s lead author. These‍ programs typically reimburse less than private health insurance.

The researchers also pointed out that the exclusion⁣ of⁤ some pharmacies, especially independent ones, from pharmacy benefit manager ‌networks can be detrimental. This can result in fewer prescriptions and customers for those stores.

Retail pharmacies play a crucial role in providing vaccinations, contraception, overdose prevention, and treatments for opioid use disorder, in addition to prescriptions, Qato noted. She emphasized that Black and Latino communities often have fewer pharmacies to ⁤start with, making the impact‍ of store closures particularly severe for residents of these communities.

“There aren’t many other ‍options for them,” she said.

The Associated Press‌ Health and‌ Science Department receives support from the Howard Hughes ⁤Medical Institute’s Science and Educational Media Group.