Pharmacy Closures Leave Rural America Without Essential Services

The wave of pharmacy closures sweeping across the United States has left many rural towns without access to essential healthcare services. In New Lebanon, Ohio, a small town with just 3,756 residents, the closure of its Rite Aid pharmacy has created significant challenges for locals, particularly elderly residents.

Rite Aid Closures Hit Small Towns Hard

Rite Aid’s recent bankruptcy has led to the closure of 800 stores, including 180 locations in Ohio. For towns like New Lebanon, where the local Rite Aid was the last remaining pharmacy, residents now face a 30-minute drive to the nearest pharmacy in Dayton for their prescription needs.

Mayor Nickerson has voiced concerns over the impact on elderly residents, many of whom are uncomfortable traveling long distances to unfamiliar areas. This issue highlights the growing phenomenon of pharmacy deserts—areas with limited or no access to local pharmacies.

Pharmacy Benefit Managers (PBMs) Under Scrutiny

The closures are not limited to Rite Aid. Both Walgreens and CVS have also reduced their footprint, citing financial pressures. A major contributor to these closures is the role of Pharmacy Benefit Managers (PBMs), who negotiate drug prices on behalf of insurers but are accused of reducing reimbursement rates for smaller pharmacies, making it difficult for them to stay afloat.

An FTC report revealed that three major PBMs control 80% of prescription fulfillment in the U.S., leaving smaller pharmacies vulnerable to closure. This consolidation has raised concerns about the accessibility and affordability of pharmacy services in rural areas.

Limited Alternatives for Rural Communities

Experts suggest alternatives such as prescription delivery services, partnerships with local hospitals, and digital health apps. While these options provide convenience, they lack the personal touch and immediate accessibility that traditional pharmacies offer, leaving many residents frustrated and underserved.

The closure of pharmacies in rural America underscores the challenges facing the healthcare system and the need for innovative solutions to ensure equitable access to essential services.

‍

Source: CNBC