Hartselle Pharmacist points to a rise in pharmacy closures in Alabama due to PBM issues

HARTSELLE, Ala. (WAFF) – Hundreds of pharmacies across Alabama have closed over the past six years, according to public records from the Alabama Pharmacy Association.

“It’s unfair compensation for us and an unfair business model in healthcare when we can’t make the same money as the national chain,” said pharmacist Mike Pruitt.

Pruitt’s work as a pharmacist has become increasingly demanding over the course of his 30-year career. His independent pharmacy receives less reimbursement than chain pharmacies.

He posted on social media about the $85 reimbursement difference for a diabetes medication.

The prices that customers pay for drugs and the payments that pharmacies receive are largely determined by companies known as pharmacy benefit managers (PBMs), which negotiate discounts from drug manufacturers to insurers.

PBMs argue that they help keep drug prices low by negotiating with drug manufacturers.

“PBMs must be held accountable,” said Sen. Tommy Tuberville, R-Alabama. “Pharmacies across the country are having to pay discounts, have to pay higher prices and they are losing money because these PBMs, the middlemen so to speak, are making most of the money, that needs to be corrected.”

No one is more aware of this than Pruitt, who runs Gilchrist Pharmacy.

He witnessed the closure of the city’s largest pharmacy in 2008 and the closure of another independent pharmacy in 2013.

“We are the last independent pharmacy in Hartselle. We offer services that no other pharmacy offers. We provide compounding services, delivery services, and packaging services for patients who have issues adhering to their medications. If we don’t stay in business, health care in this area will suffer,” Pruitt said.

Pruitt said the loss of those services could leave a big gap, especially for lower-income households.

“I think patients need the personal touch of a pharmacy. I think they need a relationship with their pharmacist,” he said.

So far in 2024, 20 pharmacies have closed across the country.

Pruitt wants leaders to take action to prevent more pharmacies from closing in the coming year.

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