Independent Pharmacy Business Challenges and Strategies

This technical report by Avalere Health outlines the challenges faced by independent pharmacies in the United States, particularly focusing on financial pressures that have led to store closures. The research identifies key drivers such as reimbursement pressures and regulatory burdens, while also exploring other factors impacting financial viability. Through interviews and a survey of independent pharmacists, the report reveals that drug shortages are a significant concern, with 95% of respondents using multiple wholesalers for generic drugs. It details adaptive strategies employed by pharmacies, including diversifying service offerings like home delivery and vaccinations. The report also discusses the implications of recent policy changes, such as the Medicare Drug Price Negotiation Program, which may further affect cash flow and operational challenges. Overall, the findings emphasize the need for independent pharmacies to navigate a complex landscape to maintain their operations and service delivery.