Almost 30% of US Pharmacies Have Closed Since 2010

Store closures threaten healthcare access in underserved neighborhoods
By Newser.AI Read our AI policy
Posted Dec 4, 2024 1:45 AM CST
Almost 30% of US Pharmacies Have Closed Since 2010
The CVS Pharmacy logo is displayed on a store on Aug. 3, 2021, in Woburn, Mass.   (AP Photo/Charles Krupa, File)

A recent study published in Health Affairs highlights the alarming closure of nearly 30% of US drugstores between 2010 and 2021. This trend has disproportionately affected Black and Latino neighborhoods, exacerbating existing healthcare disparities. Major chains such as Walgreens and CVS have closed hundreds of stores in recent years, while Rite Aid is undergoing a bankruptcy reorganization. The closures are driven by diminishing prescription reimbursements, rising operational costs, and evolving consumer habits.

The study involved data from the National Council for Prescription Drug Programs and revealed more than 26,000 stores shut down in this period. Independent pharmacies, often serving Black, Latino, and low-income areas, were singled out as more prone to closure than chain stores. Those pharmacies sometimes face exclusion from pharmacy benefit manager networks, which impacts their prescription and customer traffic. Pharmacies in areas with higher Medicaid and Medicare participation were also at increased risk, as these programs offer lower reimbursements than private insurers.

These closures carry significant consequences beyond merely filling prescriptions. Retail drugstores play a crucial role in delivering vaccinations, birth control, and opioid use disorder treatments. The dwindling number of pharmacies particularly affects Black and Latino communities, which often have limited access to these essential services, experts say. Dima Qato, from the University of Southern California and lead author of the study, underscores the severe impact of such closures on these communities, stating, "There aren't many other options for them." (This story was generated by Newser's AI chatbot. Source: the AP)

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