Pharmacy Chains Close Over 1,500 Stores, Creating Healthcare Access Challenges

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ICARO Media Group
News
23/10/2023 20h22

In a significant blow to healthcare accessibility, Rite Aid, CVS, and Walgreens, the nation's largest drugstore chains, have announced the closure of more than 1,500 stores. This decision leaves millions of Americans residing in "pharmacy deserts," areas with limited access to essential medications and healthcare services.

Rite Aid, following its recent Chapter 11 bankruptcy filing, disclosed plans to shut down 150 out of its 2,100 locations across the United States. The company has faced challenges in resolving numerous lawsuits accusing them of excessive opioid prescribing and struggles to compete with other market players.

According to JAMA Network, the closures of multiple drugstore chains have created "pharmacy deserts" in various communities, affecting an estimated one in four neighborhoods nationwide. Dima Qato, an associate professor at the University of Southern California, highlighted that these closures disproportionately impact the communities that rely heavily on pharmacies.

CVS, as part of its online strategy, intends to close approximately 900 stores by the end of 2024, equivalent to 10% of its total number of shops. Implementing reforms initiated in 2021 that will result in 300 store closures per year, CVS aims to adapt to the evolving needs of online shoppers. This move comes amidst the challenges posed by widespread shoplifting incidents across their stores, which have led to significant financial losses.

In a tragic incident highlighting the severity of shoplifting concerns, a CVS store manager, Michael Jacobs, was shot and killed by a customer accused of shoplifting in Arizona. The incident drew attention to the rising issue of retail theft, with estimates from CapitalOne Research suggesting that stores suffered losses of $86.6 billion in 2022, projecting that this figure may exceed $115 billion by 2025.

Walgreens, battling declining demand for COVID-19 vaccines and tests, will close 150 stores by the summer of 2024. The company's shareholders witnessed a record low in stock prices in June, prompting executives to take drastic cost-cutting measures. Additionally, over 500 Walgreens store employees engaged in a three-day strike during October, highlighting concerns within the workforce.

Addressing the challenges faced by "pharmacy deserts," healthcare company TelePharm has advocated for various solutions, including prescription delivery, mail order services, prescription drug lockers, telepharmacy, and physician dispensing. These alternative avenues have the potential to bridge the healthcare gap caused by the closure of numerous pharmacies.

As the pharmacy landscape undergoes significant changes, the impact on millions of Americans without easy access to essential medications and healthcare services remains a pressing concern. Efforts from both private entities and public agencies are essential to ensure equitable healthcare access for all communities affected by the closures.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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