An independent drugstore, Mainline Pharmacy, has recently announced the closure of almost all its outlets. This decision comes after the pharmacy faced significant financial difficulties, mainly attributed to the impact of pharmacy benefit managers on its profitability.
The closure of these stores means customers will now have to look for alternatives for their pharmaceutical needs.
Mainline Pharmacy Announces Closure of Nine Stores, Retains One in Somerset
Mainline Pharmacy has declared that it will shut down nine stores by March 11. This significant reduction will leave only one store operational in Somerset, Pennsylvania. Additionally, the company will maintain its service to long-term care facilities through another pharmacy, operating under a different business model.
This announcement was made public through a post on Facebook. Mainline Pharmacy regretted this decision, acknowledging the closure's impact on its customers and communities.
"It is with a heavy heart that we announce the closure of your local pharmacies," the company stated. "This decision was not made lightly, and we understand the impact it may have on you and your loved ones."
Mainline Pharmacy, which opened its first store in 1980, had been a growing presence in the community for years. The pharmacy's ambition was always to be a reliable and constant part of local life. "We wanted to keep stores in the community," John Pastorek, the owner and director of pharmacies at Mainline, remarked.
However, this long-standing goal has recently become unachievable, leading to the current situation of store closures.
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Mainline Pharmacy Closure: The Struggle Against PBMs
Mainline Pharmacy has attributed its financial difficulties to pharmacy benefit managers (PBMs), third-party insurance entities responsible for managing prescription drug benefits. These PBMs, as the company explained, have been underpaying Mainline for medications, rendering the pharmacy unable to turn the necessary profit to sustain its operations.
John Pastorek, the owner of Mainline Pharmacy, expressed his frustration. "We've been sadly driven out of business by pharmacy benefit managers," he said. Pastorek detailed how, for a commonly used diabetic injectable, Mainline spends $2,858 but receives only $2,436 from PBMs, resulting in a $422 loss per item.
"They pay us way less than what we pay for medications from our wholesaler," Pastorek explained. This problem with PBMs, he believes, is a key factor in the closure of other independent pharmacies as well. "That's why there are barely any independent pharmacies across the country," he claimed.
Since the beginning of the year, Mainline has filled 17,574 prescriptions at a loss, leading to a staggering $350,000 in profit losses. "We are sick about it," Pastorek remarked on the decision to close the stores. He described the situation as increasingly dire: "We were hoping 2024 would get better, but it's gotten worse. We are underwater on 30% of our prescriptions."
To ensure continuity for their customers, Mainline has arranged to transfer prescriptions to a local Rite Aid. "Our agreement allows us to transfer prescriptions to the nearest Rite Aid store securely," Pastorek said, noting the proximity of Rite Aid stores to the closing Mainline locations.
Despite the assurance of prescription transfers, many customers have expressed their disappointment to local ABC news affiliate WTAE. Long-time patrons lamented the loss of their trusted pharmacy, citing its convenience and their preference to support local businesses.
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