More Pharmacy Closures in New York: What’s Behind the Trend?

New York has seen the closure of numerous pharmacies over recent years, creating growing concerns among residents.

NEW YORK — This week, drugstore chains Walgreens and Rite Aid announced several store closures, adding to the uncertainty surrounding where New Yorkers will fill their prescriptions as pharmacy deserts continue to expand. CVS is also reducing its number of locations.

Executives from these pharmacy chains have cited several reasons for the closures in New York and beyond. These include decreased consumer spending due to inflation, lower reimbursement rates for pharmacy services, and insufficient dispensing fees for Medicaid recipients.

Additionally, they noted that existing business models are outdated in the face of rising competition from other retailers that offer similar products. Pharmacies are also still adapting to the surge in demand brought about by the COVID-19 pandemic.

New York has experienced a significant loss of pharmacies during this wave of closures in recent years.

Announced Closures by Major Pharmacy Chains:

• Walgreens plans to shutter a substantial portion of its 8,600 U.S. stores in an effort to revamp its struggling pharmacy operations. On Thursday, Walgreens Boots Alliance CEO Timothy Wentworth mentioned in an investor call that up to 25 percent of their stores — roughly 2,150 locations — could close. This comes on top of about 2,000 stores the company has already closed over the past decade, including 484 since February.

• Rite Aid, burdened by billions in debt and facing thousands of lawsuits related to allegedly improper opioid prescriptions, disclosed in court filings that it will close an additional 27 stores across two states, effectively eliminating nearly all of its locations in Michigan and Ohio pharmacies. This adds to the nearly 500 stores the company has already shuttered.

• CVS has closed around 600 stores since 2022, with plans to shut down another 300 this year. These decisions, according to CVS spokesperson Amy Thibault in a statement to CNN, are based on a review of population changes, evolving consumer habits, and anticipated healthcare needs to ensure pharmacies are located where they are most needed.

What Does This Mean for New York?

As of early June, an Associated Press analysis showed that New York had 4,939 retail pharmacies, amounting to about 0.25 pharmacies per 1,000 people.

Urban areas tend to have more pharmacy access, with New York City having 0.47 pharmacies per 1,000 residents and Albany showing 0.43 per 1,000. Rural regions, particularly in Upstate and Western New York, have far fewer options, according to the AP analysis.

Regardless of whether they are independent or part of a chain, pharmacies serve as vital community health hubs. Pharmacists often know their customers personally, understand the medications they take, and can identify signs of serious health conditions. These establishments also provide essential supplies such as catheters, colostomy bags, and diabetes test strips, allowing patients to manage serious illnesses while staying in their homes.

The AP report emphasized that these gaps in pharmacy access are especially pronounced in rural communities. A separate study by the University of Southern California found that between 2007 and 2015, Black and Latino neighborhoods in 30 major U.S. cities had fewer pharmacies compared to predominantly white or mixed neighborhoods — even before the current wave of closures.

“If you’re in a lower-income, predominantly Black or Latinx neighborhood, pharmacy access is already limited. Having one that meets your needs is even rarer,” explained Jenny Guadamuz, co-author of the study, in a conversation with CNN.

Can New York’s Independent Pharmacies Bridge the Gap?

New York’s 2,618 independent pharmacies face significant challenges of their own and may struggle to fill the void left by chain closures, according to the National Community Pharmacists Association (NCPA), which represents over 19,400 independent pharmacists nationwide.

The NCPA stated earlier this year that new Medicare and Medicaid policies, which reduce prescription reimbursement rates, put one-third of independent pharmacies at risk of closing. The result could leave millions of patients without a nearby pharmacy.

In 2022, New York’s independent pharmacies dispensed 173.3 million prescriptions and generated over $11 billion in revenue, with $10.2 billion coming from medication sales. These businesses also employed more than 31,100 workers.

The impact of pharmacy closures on patients is profound.

“When a pharmacy closes, it disrupts patient care,” noted Guadamuz, an assistant professor at UC Berkeley’s School of Public Health, in an interview with CNN last fall. “You had a routine where the pharmacy was conveniently located, affordable, and likely accepted your health insurance. But now, that pharmacy is gone.”

For example, when CVS abruptly announced in March that it would close its Herscher, Illinois location — a village of about 1,500 residents situated 80 miles south of Chicago — the town’s mayor pleaded with executives to delay the closure. CVS ultimately cited the underperformance of the store’s front-end as the reason for the closure, the AP reported.

While pharmacy access is a key factor in decisions about which stores to close, CVS spokesperson Matt Blanchette explained to the AP that the company also considers local market conditions, population changes, and competition from retailers selling the same over-the-counter products.

The Associated Press contributed to this report.

As large pharmacy chains continue to close locations across New York, Mediserv Pharmacy stands ready to meet the needs of the Bronx community. At Mediserv Pharmacy, we pride ourselves on delivering personalized care, ensuring that each of our customers receives the attention they deserve. Whether you need to fill a prescription, purchase medical supplies, or consult with a pharmacist who knows your name and health needs, our team is here for you. Unlike large chain pharmacies, Mediserv Pharmacy offers the familiarity and dedication that comes with being part of a close-knit community. With a wide range of services and products, from medications to specialized health supplies, we are committed to supporting our patients and ensuring they have access to the healthcare resources they need.

As pharmacy deserts continue to grow in New York, independent pharmacies like Mediserv Pharmacy play a crucial role in providing access to essential healthcare services. We are proud to be a reliable, locally owned option for Bronx residents navigating their healthcare journey.