An alarming trend: Ohio pharmacy closures spike, openings lag

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According to a new data tool issued by the Ohio Board of Pharmacy, the number of pharmacy closures in Ohio has increased recently, with the stores closing in the communities that can least afford to lose them. As expected, the outcome has been fewer pharmacies in Ohio overall, even if the state’s population is only moderately increasing.

The concerning figures once more cast doubt on the viability of pharmacies in many Ohio areas.

In addition to making it more difficult for people to obtain their medications, their loss is a public health risk. In addition to providing other services, pharmacies also provide immunizations. Additionally, the local drugstore frequently offers the medically underserved the infrequent opportunity to discuss ailments like diabetes and high blood pressure with a medical practitioner.

A total of 110 retail outpatient pharmacies were opened in Ohio in 2015. However, during the following 12 months, something had to have happened.

There were a record 120 closings in 2016. The board of pharmacy, which licenses and controls them, reports that openings fell to 45 and remained low for the next eight years.

Then an even more alarming event occurred.

There were only 55 closures in 2023, which is a comparatively small number. However, it soared to 191 the next year, a 247% rise.

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Many of the closures were announced with plenty of attention. Hundreds of Rite Aid outlets in Michigan and Ohio were closed by the bankrupt company. Across the country, Walgreens started closing thousands of shops. Additionally, CVS completed the process of closing 900 of its pharmacies last year.

According to data from the Board of Pharmacy, Ohio’s outpatient retail pharmacy count decreased from 2,219 in 2015 to 1,869 last year as a result of weak openings and soaring closures.

There are now fewer pharmacies servicing more people, a 16% decrease over a period when the state’s population increased by almost 2.5 percent.

Dave Burke, a pharmacist, former state legislator, and current executive director of the Ohio Pharmacists Association, expressed concerns about the closures last year, saying that the pharmacy industry was on a precipice that might have catastrophic effects on Ohio.

Those who stand to suffer the most are already feeling the effects of the closures the most.

The Board of Pharmacy linked the locations of closures to those of the most vulnerable Ohioans as part of its new dashboard. Its employees did so by using mapping data from the Social Vulnerability Index of the U.S. Centers for Disease Control and Prevention.

It examines 16 pieces of data collected by the Census Bureau, including income, work status, educational attainment, minority status, health insurance status, transit accessibility, and whether household members are elderly or children. On the index, those who have the greatest difficulties are scored highest, followed by medium-high, medium-low, and low.

It became evident that pharmacies were leaving vulnerable communities at a significantly higher rate when the Board of Pharmacy superimposed closures since 2012 on the CDC vulnerability map. Neighborhoods with high and medium-high susceptibility accounted for over 60% of the closures.

Given that those neighborhoods probably had fewer pharmacies to begin with, the effects of closures may be even more severe there.

Independent and small-chain pharmacists in Ohio have long accused large health conglomerate pharmacy middlemen of forcing them out of business. Eighty percent of the insured patients are accessed through the three largest intermediaries combined.

Pharmacies claim that because they have no negotiating power, they are compelled to sign agreements wherein the intermediaries pay them for the medications they purchase and administer through an opaque system. Pharmacists claim that fees and other costs levied by the intermediaries, sometimes known as pharmaceutical benefit managers, reduce their already meager profits.

The Federal Trade Commission acknowledged the pharmacists’ premise in an interim report last year. It said that the middlemen’s actions seemed to be increasing costs and worsening patient conditions.

However, Antonio Ciaccia, a drug-pricing specialist from Columbus, stated that a more intricate combination of elements is to blame for Ohio pharmacies’ problems.

He claimed that staffing issues, pessimism about the future, and a federal initiative intended to help hospitals and health centers that treat the poor are putting pressure on traditional pharmacies. However, he added that intermediary reimbursements are undoubtedly a significant consideration.

According to Ciaccia, it all boils down to whether you have enough money flowing in.

Executive Director Steven W. Schierholt of the Board of pharmaceutical said in a statement that his organization created the dashboard to pinpoint pharmaceutical issues so that legislators can solve them.

According to him, having a pharmacy close by is essential for Ohioans’ health and safety, particularly for those who rely on prescription drugs on a daily basis. We must have a tool to help local community leaders and officials alike stay informed and even ahead of developing trends as Ohio’s pharmaceutical sector changes.

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