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Independent pharmacies are facing a complex landscape marked by financial pressures, staffing challenges, and evolving service models. The 2024 NCPA Digest sheds light on these critical trends, revealing both the struggles and the resilience of these vital healthcare providers.
One of the most concerning trends is the decline in the number of independent pharmacies, dropping to 18,984 in June 2024. This decline is attributed to a broken payment system, particularly losses associated with GLP-1 agonists, and the decrease in COVID-19-related services. Despite this, independent pharmacies still constitute a significant 35% of all pharmacies in the U.S. While independent pharmacies represented a substantial $94.9 billion marketplace in 2023, their gross profit margins have fallen to a 10-year low, reaching only 19.7% due to low reimbursements and rising operational costs. To make matters worse, staffing shortages plague independent pharmacies, with 67% of NCPA members reporting difficulties in filling positions.
In response to these challenges, independent pharmacies are diversifying their services and embracing technology. Many offer services such as:
Wound care (80%)
Medication therapy management (81%)
Smoking cessation aids (68%).
They are also adopting technology to enhance efficiency, including point-of-sale systems (89%) and automated dispensing counters (73%). Furthermore, many independent pharmacies are part of clinically integrated networks like CPESN USA, enhancing their ability to provide comprehensive patient care.
To improve patient care, AI scribes are being developed and used in other healthcare settings and may find use in pharmacies in the future. The anticipated benefits of AI scribes include:
Enhanced Efficiency: AI scribes automate the documentation process by accurately capturing conversations and generating summaries.
Improved Accuracy: AI scribes precisely transcribe and summarize conversations, reducing errors
Consistency in Documentation: AI-powered software standardizes documentation, ensuring that all healthcare providers have access to uniform and comprehensive patient information
However, the use of AI scribes also raises concerns regarding privacy and security, accuracy and reliability, integration with existing systems, and ethical and legal considerations.
The Centers for Medicare & Medicaid Services (CMS) is proposing a $2 Drug List Model to lower prescription drug costs for Medicare beneficiaries. This initiative aims to provide generic drugs for common conditions at a fixed copay of no more than $2 per month. While this model has the potential to improve medication adherence and health outcomes, its impact on pharmacies is a concern. With already struggling financially, the $2 Drug List program may further reduce compensation for pharmacies filling these prescriptions.
Independent pharmacies are actively advocating for PBM reform through the National Community Pharmacists Association (NCPA) and campaigns like "Finish the Fight" and "10 to Win". These efforts aim to address unfair PBM practices and ensure fair reimbursement for pharmacies. By engaging patients and voters, the NCPA hopes to influence legislators and drive meaningful change in the pharmaceutical landscape.
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