Why are rural Texas pharmacies struggling financially?

Rural Texas pharmacies are struggling due to low reimbursement rates from Pharmacy Benefit Managers (PBMs), which often force them to sell prescriptions at a loss.

What strategies are Texas pharmacies using to stay open?

Many rural Texas pharmacies are diversifying their income streams by operating cattle businesses, selling gift shops, or offering other retail goods.

What impact do PBMs have on Texas pharmacies?

PBMs control prescription claims and reimbursement rates, often dictating low payments to pharmacies, which can lead to financial strain and potential closure of independent drugstores.

Home / Business and Economy / Ranchers Turn Pharmacists to Fight Drugstore Closures

Ranchers Turn Pharmacists to Fight Drugstore Closures

27 Mar

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Summary

Texas sees 60% of counties without a pharmacy; one closes weekly.
Pharmacists struggle with low PBM reimbursement rates.
Rural pharmacies diversify with cattle ranches and gift shops.

Ranchers Turn Pharmacists to Fight Drugstore Closures

In Texas, the struggle to maintain rural pharmacies is intensifying, with 60% of counties lacking a pharmacy and one closing each week. Pharmacists are increasingly turning to alternative revenue streams, such as cattle ranching and gift shops, to counteract dwindling profits. This diversification is a direct response to the financial pressures imposed by Pharmacy Benefit Managers (PBMs), which dictate reimbursement rates that often force pharmacies to sell prescriptions at a loss.

McEntire, a Texas rancher and pharmacist, exemplifies this trend by operating her family's Red Angus cattle business alongside her two pharmacies. Her family's historical reliance on diversified income sources, including oil drilling and cattle, now informs her strategy to keep her pharmacies afloat. Similarly, Dana Tilton’s pharmacy in Spur sells more than just medication, offering gifts and clothing to supplement its income.