This year’s National Community Pharmacists Association (NCPA) Digest, which provides a yearly overview of the independent community pharmacies, revealed the number of those pharmacies is shrinking — which could have dire consequences for the communities and patients they serve.
In an October announcement about the release of the digest, sponsored by Cardinal Health, NCPA CEO B. Douglas Hoey, pharmacist, MBA, summed up this year’s findings.
“The NCPA Digest serves as an annual barometer for independent pharmacy, and this year’s is showing an ominous amount of pressure in the industry,” Hoey said. “With independent pharmacies closing at a rate of more than one each day since last year, the report lays bare the ramifications of low and negative reimbursements for GLP-1s and other drugs, no longer countered by tax incentives and revenue earned from offerings related to COVID-19. Whether through other immunizations or services like long-term care, having a successful business increasingly relies on diversifying and bringing in different types of revenue. With the turbulence we’re seeing in independent and chain pharmacy alike, there’s a dire need to fix the broken pharmacy payment model. We’re continuing that fight, armed with NCPA Digest data and the goal of healthier pharmacies and patients.”
Number of independent pharmacies is declining
Digest highlights shared by the NCPA included that the number of independent community pharmacies fell from an estimated 19,432 in June 2023 to 18,984 pharmacies in June 2024. “This represents a loss of more than one independent pharmacy per day,” the NCPA said.
The gross profit margin for community pharmacies fell to 19.7%, “its lowest point in the NCPA Digest report’s 10-year lookback window,” the organization said. “This reflects factors like low or below-cost third-party reimbursements and inflation (which showed up in wages and overhead costs).”
Of the community pharmacy respondents who participated, 93% described their primary pharmacy operations as retail pharmacy.
The digest also showed the range of services provided by community pharmacies: 91% of respondents provided flu immunizations; the same percentage provided non-flu immunizations. Data showed that 81% offered medication therapy management; 64% performed blood pressure monitoring for patients; 47% offered compounding services.
Independent pharmacies are ingrained in their communities, the Digest added, noting that 60% of community pharmacy owners donated to at least five local organizations in 2023.
