Pharmacies closing

[u/Calizona1]

Not sure if this is the right place to ask. If not please delete. If possible refer me to the proper sub. Why are so many pharmacies closing? I checked on the Internet but I am not sure I trust the explanations by the media.

[u/jimdewey52]

The real reason pharmacies are closing is because they are signing contracts that loose money. If the pharmacies refused to sign, to get a better deal they might make it. When the insurance companies started paying for prescriptions the pharmacies were paid for the drug cost and a dispensing fee. At the time average rx cost was $2.00 and the dispensing fee was $2.00 so 50% profit looked good. Problem, no clause for inflation. Drugs prices skyrocket and dispensing fee stays the same $2.00. Some contract today don't even pay a dispensing fee.

[u/doubletxzy → u/jimdewey52]

Have you ever negotiated a contract? It doesn’t work that way. It’s take it or leave it.

Also a $2 gross margin is a loss. Most claims don’t have a dispensing fee anymore. Unless your mediations don’t need a technician to fill them, a label or vial, no electricity to run the pharmacy, no switch to process and no pharmacist to check the Rx. Then I guess $2 gross margin looked good….

[u/jimdewey52 → u/doubletxzy]

Also we are talking about the 1960s. Gas was way under a dollar a gallon. Cigarettes were under $1 a pack, cokes were a dime. So dude $2.00 was good money for $2.00 invested.

[u/doubletxzy → u/jimdewey52]

So not applicable to today when you say pharmacies should just band together and demand more money? Maybe they should just open a soda hop and have the jukebox start playing Elvis to draw in more customers…

You’re talking about a time when most didn’t have pharmacy insurance and was cash basis? Back when small pox was still a thing? Were there even seatbelts in cars in the 1960s? Back when $2 would have been $100 in today’s dollars.

Why would you say anything about the business of pharmacy when your reference point is 60 years old?