Pharmacies are disappearing across Pennsylvania as operators blame a broken payment system [View all]

Spotlight PA link:
https://www.spotlightpa.org/news/2025/07/health-pennsylvania-drugstore-closures-healthcare-access/
HARRISBURG Hundreds of pharmacies across Pennsylvania have gone out of business in recent years, data obtained by Spotlight PA show, and pharmacists say legislation passed last year to help isnt doing enough to stave off more closures.
The problem, pharmacists and their advocates say, boils down to how much pharmacies are paid for their work and the medications they provide. The reimbursements offered through insurance plans frequently don't cover the costs of the drugs themselves or the related overhead expenses, such as paying for staff and keeping the lights on, according to multiple Pennsylvania pharmacists and pharmacy owners.
Several pharmacists told Spotlight PA that depending on reimbursement rates, pharmacies can bring on more customers and fill more prescriptions and still end up losing money. Its kind of a double-edged sword, said Eric Abramowitz, a pharmacist and co-owner of Erics RX Shoppe in Montgomery County.
Pharmacists and some lawmakers have blamed closures on pharmacy benefit managers (PBMs) middlemen in the drug pricing chain although advocates for those businesses dispute it.
- more at link -
Smaller towns and rural areas in PA have been hit by these pharmacy closures. In some cases, it's the only retail pharmacy serving a 40 or 50-mile radius. Several retail pharmacies turned to selling premium items such as greeting cards and cosmetics, only to be spurned by shoppers who go to Walmart for the lower prices.
In Allegheny County and the greater Pittsburgh area, we're probably over-built with competing franchises of Rite-Aids, Walgreens, GNCs and similar names. Many of the smaller stores can't compete because their location isn't near a major shopping area, or on a busy road. The result is the same ... those stores have to close.