Walgreens will be closing a "signifcant" number of stores. All the typical excuses...inflation, Amazon, etc...but they're saying that they're losing money on filling glp-1 prescriptions. No other context...just that they're losing money. I really hope this doesn't lead to pharmacies not filling prescriptions because it's not profitable. We already deal with so much with insurance, cost, and finding the medication. That's it. Just a mini-rant. Back to busisness.
Small pharmacies nationwide are closing , Rite Aid in multiple states got bought out and laid off their staff they all say it's related to glp 1 products. The insurance companies aren't reimbursing the pharmacies even at cost of the drug. The only one making money is supposedly just the pharmaceutical company, not the middleman sadly
Rite Aid filed for bankruptcy before GLP-1s took off. Several locations closed during the early stages of the pandemic. Blaming GLP-1s, which they could barely order based on responses on the sub, is a cop out. Below is an article from December 2021 about store closings due to years of overexpansion. The other smaller pharmacies are likely closing because of inflation and people having less money to spend due to the cost of basic necessities being so high.
https://www.cnn.com/2021/12/21/business/rite-aid-store-closures/index.html
I honestly think they purposely don't order glp1 to reduce their losses
The past three years I've gone to Walgreens they've looked like a post-apocalyptic wasteland.
But sure, they're all in trouble now because they're filling trendy shots.
Sure.
Walgreens has been in a free fall for years. They’re closing underperforming stores which is about all they can do at this point.
These big chains go through cycles. Expand for several years. Then contract for several years. Depends on the ceo. Too rapid of growth gets locations that don’t make money.
They underperform because they are not patient focused. I’ve used Walgreens since they took over my local Rite Aid. Now they have decided to close the pharmacy on weekends. They are only open 10-6 on other days. An hour of that time closed for lunch. I’ve had no choice but to go to Walmart, the only other local option.
Noticed this when I went out of town for Memorial Day weekend. Since when did they start closing on the weekends.
Well, it couldn't be because their business model is from 1960. 🤣
Earlier this week, Rite Aid announced it is pulling out of Michigan entirely and sending its patients' prescriptions to...Walgreens.
If they didn't make their patients call multiple times a day to ensure their place in a nonexistent line, maybe it wouldn't cost them so much in labor.
Their system for filling scripts is antiquated and burdensome to both parties.
Their customer service is the worst.
This ^
I can’t imagine they are losing money dispensing GLP1 meds when mine can’t seem to figure out how to dispense it even if they have it in stock (which they never do). They are closing stores because of incompetence and mismanagement.
Yea. But they literally don’t even break even on these meds. The hope is you have other scripts there plus you buy stuff at the store.
Walgreens hates GLP-1s. They go out of their way to make things difficult. Why wouldn’t they also use it as a scapegoat for all their ills. 🤷🏼♀️
I stopped using Walgreens because their employees are rude asf and the company seemed to create that atmosphere. They fucked themselves.
how much does it really cost the pharmacies to fill the glp1? i've had a lot of pharmacies tell me they stopped stocking it because it's too expensive.
Looking thru the pharmacy reddit sub. It seems like they don't get reimbursed by insurance properly for it, not a cost issue. I believe legally they can't do anything about it either since it's part of their contract with insurances
Correct. From what I have read, negotiated rates with Eli Lilly are something like $940 a box… of which 40% or so goes to PBM. Rest to manufacturer. Pharmacy gets $50 or less
The pharmacy actually loses money. Otherwise you’re about right.
The price doesn’t matter since generally pharmacies get paid in about the same amount of time that the bill is due to the wholesaler. The issue is we’re getting paid significantly less than the cost of the drug. You need to call your state and national legislatures and have them fix this. That’s the only way anything is going to get better. Until then more pharmacy closures or less pharmacies carrying medications people need.
My local Walgreens says they dispense you the drug but it takes them months to recoup the money from Lilly. So they are paying full price to purchase but they aren’t getting their reimbursements timely. That’s also why they said so many of them “can’t process your coupon”.
Oddly enough, they’ve been the only place consistent for me through the shortage. But, I’ve only started using them after my PA went though so there is that.
I think I saw on the pharmacy thread that these stores barely make $25 on each box and in some cases lose money on it.
I own 6 pharmacies. We lose on every single GLP1 prescription and most other brands as well.
Where do you all fill your scripts? I’m having the same issues with CVS. They’re perpetually out of stock, having to order, always delayed, and they’re RUDE AF!!!
Nearly every CVS I’ve been to, multiple states over several years, different scripts, common meds, same experience.
I need somewhere new!
Good riddance to Walgreens
Given the Walgreens policy about allowing pharmacists not to fill customer prescriptions based on religious beliefs, good riddance!!!
The entire pharmacy model is upside down. Deals and rules all designed to keep PBMs profitable. PBMs determine reimbursement to pharmacies. PBMs negotiate rates with manufacturers. PBMs tell you which pharmacies you can use. What your BMI needs to be. Whether your PA is approved. Pharmacies simply process and the reimbursement rates for GLP1s are low to nonexistent for pharmacies. PBMs make out. Manufacturers make out. Employees and employers lose. Pharmacists lose. The system is designed to lock down what is essentially a PBM cartel. Why? Three paid PBM lobbyists assigned per member of congress. Big pharma the same. On both sides of the aisle. Line the pockets of the politicians. Control the market. Get rich. Screw the people. Rinse and repeat with other industries. Railroad. Air. Guns. Supreme Court. Shit show. If you want to hear it from the pharmacists pov, head to the pharmacy thread and look for the post about walgreens closing and read the comments. I feel deeply for the pharmacists and their industry. Only a few mega PBMs plus Amazon will remain, according to what they are saying. Reduced competition spells bad news for consumers. Get money out of politics.
Glp-1 are a different pay model then other drugs so yes a lot of the non manf partners hate glp-1 because they haven’t figured out how to stay profitable and right now manf have all the leverage
The payor model is not different. It's the same as any other brand-name drug.
No it is not. I work for one of the largest distributors in the world. It is a completely different business model
That’s interesting, can you explain what the model is?
It is a small fee logistic model. Not a buy sell.
What does that mean
It means it is not buy sell it is based on logistics and it is not what they normally make which is a small margin. It means the manf has the golden goose and they aren’t sharing with the anyone.
I don't have any idea what "it is based on logistics" means.
Moving product from point a to point b
Friend, you are not communicating anything useful to explain how pharmacies are being paid here. Where does the payment system come in? How is it decided how much money is exchanged relative to the movement of the product?
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It’s definitely not from GLP-1s. Most likely corporate trying to save money and blame it on inflation when they could lower their prices like target.