– PHARMACIST FINANCE WEEKLY –

PHARMACIST
FINANCE
WEEKLY

FRONT-LINE FOCUS

Understanding the changing pharmacy landscape

Market Dynamics in Underserved Areas

Cardinal Health research identified 2,177 rural towns with populations between 500-5,000 that lack pharmacy access within 10 miles. This shift is reshaping the industry structure: in rural areas, independent and franchise pharmacies now make up 76.5% of all pharmacies, while chain pharmacies represent only 21.3%. This contrasts sharply with urban markets where chains dominate with 62.8-66.8% market share.

The industry is adapting with new service models. Remaining pharmacies in these markets are expanding clinical services, implementing medication therapy management, and developing partnerships with local healthcare providers. These aren’t just survival tactics – they’re becoming the new standard of practice in many areas.

Sources: US Pharmacist (Cardinal Health data), Journal of the American Pharmacists Association, PCMA

INNOVATION SPOTLIGHT

Technology solutions for underserved markets

Micro-Access Pharmacies Show Promise in Desert Areas

McKesson is pioneering “micro-access pharmacies” embedded within federally qualified health centers (FQHCs) to address pharmacy deserts. These smaller-format pharmacies strategically placed in trusted healthcare venues are proving more sustainable than traditional standalone models in underserved areas.

Telepharmacy is expanding rapidly, now allowed in 28 states, providing remote oversight that reduces staffing costs while maintaining clinical services. Some independent pharmacists are using this model to operate multiple locations or extend their reach into areas that couldn’t support a full-time pharmacist.

Sources: Pharmacy Times, Ohio State University College of Pharmacy

MARKET EXPANSION

How market forces are reshaping pharmacy practice

Urban vs Rural Market Dynamics

Pharmacy deserts aren’t just rural – they’re increasingly urban as well. In Chicago, 32% of census tracts are pharmacy deserts affecting about 1 million people, with research showing these areas disproportionately impact minority communities. This reveals that the industry challenges are systemic, not just geographic.

The market response varies by setting: urban pharmacies are focusing on convenience and technology integration, while rural operations emphasize comprehensive clinical services and community integration. Both approaches reflect the industry’s evolution toward value-based care models.

Sources: University of Illinois Chicago, Rural Health Information Hub, Drug Topics

PROFESSIONAL DEVELOPMENT & COMPENSATION

Industry workforce and compensation trends

How Market Changes Are Affecting the Profession

The pharmacy industry is experiencing workforce redistribution rather than simple reduction. While total pharmacy positions have declined, remaining operations often require more skilled, clinically-focused pharmacists. Rural pharmacies facing staffing challenges are adapting with enhanced compensation packages and broader practice scopes.

Current Compensation Reality: Recent data shows urban pharmacists still maintain a salary advantage, with median pay of $140,980 for urban areas, $139,000 for suburban, and $136,240 for rural areas according to 2023 industry surveys. However, demand for pharmacists varies significantly by location, with rural and underserved communities experiencing vacancy rates 2-3 times higher than urban centers, potentially creating leverage for compensation negotiations.

Sources: Rural Health Information Hub, Pharmacy Times, Roseman University

REGULATORY RADAR

Policy developments affecting desert pharmacies

Government Response to Desert Crisis:

• State Legislation: 180 bills were introduced nationwide in 2023 addressing pharmacist scope of practice and payment issues specifically to support rural pharmacy viability
• Federal Programs: Several supplemental dispensing fee programs are being proposed to provide financial incentives for pharmacies serving desert areas
• Telepharmacy Expansion: More states are relaxing telepharmacy restrictions to enable remote oversight models that make rural operations feasible

Sources: Rural Health Information Hub, Ohio State University College of Pharmacy

UPCOMING EVENTS

 Professional Development Opportunities:

• July 22: NCPA Rural Pharmacy Business Summit (Virtual)
• July 29: “Telepharmacy Implementation” Webinar
• August 5-7: Independent Pharmacy Summit, Las Vegas
• August 12: “Serving Underserved Markets” Panel Discussion

PARTNER SPOTLIGHT: PHARMACIST FINANCE

Navigate Career Decisions in a Changing Market

Considering a position in an underserved area? The financial analysis goes beyond just salary comparison. From understanding cost of living differences to evaluating long-term career growth potential, these decisions require careful planning to optimize your financial future.

Our Career Transition Analysis:

• Assess total compensation packages beyond base salary
• Calculate real financial impact including cost of living
• Track career development opportunities and skill building
• Strategy for maximizing loan forgiveness and benefit programs

This Week’s Intelligence Sourced From:

• Ohio State University College of Pharmacy – Pharmacy desert research
• Pharmacy Times – McKesson micro-access pharmacy initiatives
• US Pharmacist – Cardinal Health rural pharmacy mapping data
• Journal of the American Pharmacists Association – Pharmacy access and ownership analysis
• University of Illinois Chicago – Urban pharmacy desert studies
• Rural Health Information Hub – Policy and program updates
• PCMA – PBM rural pharmacy support programs
• Drug Topics – Pharmacy desert analysis and trends
• National Community Pharmacists Association – Rural pharmacy support
• Health Affairs – Pharmacy access and health outcomes research