Independent Pharmacy has always had something to fight for and has faced threats consistently for decades. Years ago independent pharmacies felt the pressure from massive chain competitors popping up on every corner. Then, it was dealing with forcing patients to use mail-order pharmacies and preferred network pharmacies. Over the past decade or so independently owned pharmacies have been on the losing side of the battle with the PBMs. This has not only impacted community pharmacies, but even chain pharmacies across the US are hurting and are closing in record numbers. Walgreens announced in October 2024 that they plan to close about 1,200 underperforming stores across the US, with about 500 closures by the end of August 2025. CVS plans to close around 270 locations in 2025, following around 300 closures in 2024. While the future may remain uncertain, independent pharmacy owners are no strangers to a challenge, and for those who put up the fight, there could be a silver lining.
What Do All These Closures Mean For Independent Pharmacy?
While it can be quite alarming to see independent pharmacies in your area closing, there is a bright side to this for those who weather the storm. Most patients prefer not to travel a far distance to receive their medications, and most still prefer a brick-and-mortar store over a mail-order pharmacy. With the huge number of chain pharmacies closing around the country, there are ‘pharmacy deserts’ left, with underserved areas and patients looking for service. The right marketing can help drive patients right to your store, especially in an area with chain closures. Not only can your independent pharmacy help patients fill their prescriptions, but, by offering additional clinical services and conveniences, patients can see a better overall quality of care, and your independent community pharmacy can see bigger profits. Historically, Independent Pharmacy has always had an advantage over large chain pharmacies with their ability to offer specialized care and added clinical services like medication therapy management and compounding. Expanded outreach and smart marketing can help bring patients through your doors, and offering the right services can certainly keep them there.
The wave of closures in the chain world also bodes well for independent pharmacy owners as it presents less competition for them. Naturally, we prefer to see other community pharmacies stay open and in business, but if there are closures in your area, it can also help drive business to your store. Connecting with other local pharmacy owners is a great idea, especially if other owners are looking to sell, perhaps they would consider selling to another independent or recommending your pharmacy to their patients. Continuing to explore unique models such as compounding, long-term care, DME, and delivery/mail order opens your pharmacy up to brand new profit centers and the potential for huge success.
Where Does This Leave Us in the Future?
As the average American consumer’s expectations of convenience continue to grow, independent pharmacy owners must offer patients a wide range of conveniences to keep their business. While closures can be good for bringing in new business, independent pharmacies need to be armed with services and conveniences to keep the business. Billion-dollar chain and mail-order pharmacies have capitalized on ease and convenience, drawing patients in with services like auto refills, same or next-day delivery, and intuitive pharmacy mobile applications. Community pharmacy owners need to take advantage of the technology within their pharmacy management systems and work these features into their everyday workflow.
What Can Independent Pharmacy Owners Do?
Offer conveniences, and use the technology to free up your time to grow your business, not micro-manage it. Options such as patient mobile applications, automatic communication via text messaging and emails, automatic prescription refills, and pharmacy automation are available for little to no cost within your pharmacy management software. Independent pharmacy owners need to start harnessing the technology within their pharmacy software systems. The best pharmacy management systems on the market offer automated features, that when utilized properly, can help you get more done with less staff.
- Getting out from behind that counter can let you see your business from a different perspective, as well as allow you to build patient relationships.
- Set up automatic text messages directly in your pharmacy software for things like refill reminders and ready for pick up alerts. Both of these messages will help your pharmacy fill more prescriptions and ensure patients are picking up their medications on time. All of this in turn results in better compliance and higher reimbursements.
- Help your patients better manage their prescriptions by encouraging them to download a pharmacy mobile application.
The best pharmacy systems offer free integrated mobile apps that sync right back into your pharmacy software. Help them manage their maintenance medication by using adherence-building tools in the pharmacy system. Medication synchronization has become more popular over the years, which can help your patients pick up or receive their medications all at the same time. This builds adherence through convenience. Datascan’s pharmacy software even has a built-in maintenance medication utility that helps monitor maintenance meds that have run out of refills, and automatically reach out to the physicians for new prescriptions to avoid patients running out of meds. If you are looking for a way to capitalize on chain pharmacy closures, then working collaboratively with your pharmacy software vendor will help you maximize your potential and secure your place in the future of independent pharmacy. Undoubtedly the unknown future of pharmacy can be a bit scary, but it doesn’t have to be. Independent pharmacy owners need to seize the opportunities in front of them, welcome change, and harness the technology from their pharmacy software systems vendor–that they are likely already paying for anyway! Although the landscape of independent pharmacy may be changing, it doesn’t have to be for the worse.
Kevin Minassian is the President of Datascan Software. Under his leadership, the company rapidly expanded to provide pharmacy management software on a national level. Over the last 15+ years, he has ensured that Datascan has continuously evolved to offer innovative solutions for independent pharmacies while still offering world-class customer support. He is passionate about helping independent pharmacies to remain competitive, achieve success, and offer the very best service to their communities.
