Nearly 30% of US drugstores closed in one decade, study shows

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. retail / ˈri teɪl / (adj.) – relating to the business of selling goods directly to consumers
    Example:

    Many small towns have no retail pharmacies, so people have to travel far to get their medicine.


  2. momentum / moʊˈmɛn təm / (n.) – the strength or speed of movement or progress that allows something to continue growing or developing
    Example:

    The company’s new product launch created momentum for its sales.


  3. timeframe / taɪm freɪm / (n.) – a specific period in which an activity happens or is planned to happen
    Example:

    The manager extended the timeframe for completing the project.


  4. pace / peɪs / (n.) – the rate or speed at which something happens or is done
    Example:

    The company is growing at a steady pace, adding new customers every month.


  5. reimburse / ˌri ɪmˈbɜrs / (v.) – to pay back money to someone for expenses he/she has paid
    Example:

    The company will only reimburse the staff for their business-related travel expenses.


Article

Read the text below.

Nearly three out of 10 U.S. drugstores that were open during the previous decade had closed by 2021, new research shows.


Some neighborhoods were most vulnerable to the retail pharmacy closures, which can chip away at already-limited care options in those communities, researchers said in a study published in Health Affairs.


The trend has potentially gained momentum since the study’s timeframe because many drugstores are still struggling. In the last few years, the major chains Walgreens and CVS have closed hundreds of additional stores, and Rite Aid has shrunk as it went through a bankruptcy reorganization.


Drugstores have been dealing with shrinking reimbursement for prescriptions, rising costs and changing customer shopping habits. The chains have been closing money-losing stores and transferring prescription files to more profitable locations.


The study found that more than 29% of the nearly 89,000 retail U.S. pharmacies that operated between 2010 and 2020 had closed by 2021. That amounts to more than 26,000 stores.


Researchers using data from the National Council for Prescription Drug Programs found that the number of U.S. pharmacies had actually increased from 2010 to 2017 because of store openings, but the pace of closings picked up starting in 2018.


Pharmacies in neighborhoods with higher rates of patients on government-funded Medicaid and Medicare also were at greater risk of closing, said Dima Qato, a University of Southern California pharmacy professor who was the study’s lead author. Those programs tend to reimburse less than private health insurance.


Researchers also noted that the exclusion of some pharmacies, particularly independent drugstores, from pharmacy benefit manager networks can hurt. That can mean fewer prescriptions and customers visiting those stores.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Many pharmacies have closed, making it difficult for residents in some neighborhoods to access care easily. How does limited access to pharmacies affect community health? Should businesses involved in healthcare receive support from the government to prevent them from closing? Why or why not? Discuss.
  • How important is it to have a pharmacy near your home? What would you do if essential stores, like a pharmacy, closed in your area? What actions should the government take to help communities without easy access to essential stores? Discuss.

Discussion B

  • What do you think are the advantages and disadvantages of depending on government reimbursements as a source of income for businesses like pharmacies? Do you think it is a good idea for companies to rely on government reimbursements? Why or why not? If you were a business owner, would you want your business to depend on government reimbursements? Why or why not? Discuss.
  • Do you have government programs in your country that reimburse pharmacies or other healthcare-related services? How do you feel about your country’s programs? Discuss.