Nearly three out of every ten U.S. drugstores that were open throughout the last decade had closed by 2021, according to new research. Black and Latino neighborhoods were the most vulnerable to these closures, exacerbating already limited healthcare options in those communities, according to a study published Tuesday in Health Affairs. The trend of drugstore closures has likely gained momentum since the study’s timeframe.
Major chains like Walgreens and CVS have closed hundreds of additional stores in the past three years, and Rite Aid has shrunk its operations as it went through a bankruptcy reorganization. Drugstores have faced multiple challenges, including shrinking reimbursements for prescriptions, rising operational costs, and shifting customer shopping habits. As a result, these chains have been closing unprofitable stores and transferring prescription files to more profitable locations.
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 due to new store openings. However, the pace of closures picked up significantly starting in 2018.
Impact of drugstore closures on communities
More than 29% of the nearly 89,000 retail U.S. pharmacies that operated between 2010 and 2020 had closed by 2021, amounting to over 26,000 store closures. Independent pharmacies were particularly affected, especially those in Black, Latino, and low-income neighborhoods. Pharmacies in areas with higher rates of government-funded Medicaid and Medicare patients also faced a greater risk of closing, as these programs tend to reimburse less than private health insurance.
Dima Qato, a University of Southern California pharmacy professor and the study’s lead author, pointed out that the exclusion of some pharmacies, notably independent drugstores, from pharmacy benefit manager networks further exacerbates the problem. This exclusion can result in fewer prescriptions and customers for those stores. Retail drugstores are crucial for more than just dispensing prescriptions—they are important sources for vaccinations, contraception, overdose prevention, and opioid use disorder treatments.
Qato emphasized that Black and Latino communities often have fewer pharmacies to begin with, so store closings significantly impact these residents. “There aren’t many other options for them,” she noted. As these closures continue, the accessibility of essential pharmacy services in minority and low-income neighborhoods remains a pressing concern.
