Rite-Aid/Walgreens merger is bad for pharmacists and patients

[Lexington2012]

I know an older couple that owned a pharmacy until the early 2000's. They put their kids through private schools and later paid for their college. They were forced to sell to a national chain. The pharmacy benefit managers (PBM) would audit the prescriptions dispensed and would penalize them monetarily for every error they found. If CVS, Walgreens and Rite Aid own the PBM's, you think they get penalized? Its a racket.

He was able to work for the national chain since he was a licensed pharmacist. But he's making about 50% less money as an employee. His wife, who's not a licensed pharmacist, manages to get just above minimum wage jobs.

The middle class is in large part built with small business ownership. Allowing these kinds of mergers destroys small businesses.

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Quick summary on what is happening:

1. Pharmacy chain merges with PBM/insurance
2. PBM/insurance unfairly audits competing pharmacies, while ignoring errors from associated pharmacy chain
4. Competitors are forced out of the market.
5. PROFIT!
4. Merge with another Pharmacy/Insurance/PBM, repeat process.
5. More competitors forced out of the market.
6. MORE PROFIT!
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The large chains have applied pressure on independents for years. This will be the nail in the coffin for the ones remaining. Having one less chain employer also means that you will have one less choice.

If this merger goes through, there will be only TWO companies controlling 90% of the retail pharmacy market.

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[awval999]

I don't disagree. But your 90% of the market figure is wrong and misleading.

 

[Lexington2012]

Read what I wrote again. It is true. The two companies I was talking about are CVS and Walgreens.

http://www.businessinsider.com/cvs-and-walgreens-us-drugstore-market-share-2015-7
"CVS and Walgreens together control between 50 and 75 percent of the drugstore market in each of the country’s 14 largest metro-areas."

That doesn't take into account that CVS now has Target pharmacies and Walgreens is merging with Rite-Aid.

 

[M0df]

You have a much better argument, which I agree with, without bringing up an older couple who had a significant head start over most of us in this profession and should have made a killing from operating their business and selling it.

 

[waiter]

what does this mean for existing rite aid rphs?

 

[Lexington2012]

It means you are likely to lose your job at a time when the labor market is contracting. Save every penny you can, things are likely to go downhill quickly.