Community Pharmacies Shifting from Product to Care Destination

Community Pharmacies Shifting

from Product to Care Destination

Staff shortages, decreasing reimbursement rates, and the COVID-19 pandemic challenge the traditional community pharmacy model. However, like with the 2009 H1N1 pandemic and the resultant pharmacy-based vaccination rate increase from 7% to 18.4% in just one year, there is a silver lining for pharmacists (4,5). Pandemics have a way of molding pharmacy practice for the future, and currently, community pharmacies are emerging from a place of distributing products to a healthcare destination.

Figure 1: Employment rate of pharmacists in the community setting declining from 2012 to 2021

Over the last five years, the number of community pharmacies in the United States has grown 0.7% annually on average (9). Over the last ten years, the percentage of community pharmacists has declined by about 1% a year (See Figure 1) (2). While this may not seem like a lot, it is the yearly loss of thousands of pharmacists (2). According to the US Department of Health and Human Services, there are four major factors contributing to the shortage of community pharmacists (3):

1. Changing workforce – Increasing numbers of part-time pharmacists as well as difficulty recruiting pharmacists to rural areas

2. Increasing use of medications – Increasing the age of the population, increasing numbers of healthcare professionals prescribing medications, and expanding the medication library

3. Expanding role – Increasing opportunities for pharmacists to practice in non-traditional roles

4. COVID-19 pandemic – Increasing numbers of pharmacists left the profession

Interestingly, these factors are a driving force behind a changing business model in community pharmacies. Between 2015 and 2020, the total number of pharmacies with CLIA waivers grew from 17.94% to 21.43% (4). The biggest influencer during this period was the COVID-19 pandemic and the U.S. Department of Health and Human Services authorizing pharmacists to order and administer SARS-CoV-2 tests. Pharmacies could earn up to $70 for each test and $40 for each COVID-19 vaccination, which helped offset losses (8). Also, during the pandemic, home delivery of prescriptions and telehealth visits increased significantly. CVS cited a 1000% increase in prescription home delivery and a 600% increase in telehealth visits between the first quarter of 2019 and 2020 (8). These statistics highlight the ever-expanding role of community pharmacists and all the innovative ways pharmacists reach patients and draw profits.

The future of community pharmacy practice may lie in expanding upon some of the newer services, particularly in point-of-care testing, telehealth, and mobile commerce (1,7). However, the traditional prescription filling and checking model may need to change for pharmacists to have the time to perform the services. Practices like Walgreens’ new method of filling prescriptions at large automated centers rather than by pharmacists at individual stores may become the way of the future (6). Regardless of what the future holds for community pharmacies, one thing can be certain; pharmacists will rise to any challenge they face.

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Sources

4. Klepser NS, Klepser DG, Adams JL, Adams AJ, Klepser ME. Impact of COVID-19 on prevalence of community pharmacies as CLIA-Waived facilities. Res Social Adm Pharm. 2021;17(9):1574-1578. doi:10.1016/j.sapharm.2020.12.003

5.Palmer K. Ten years ago, swine flu ushered in the era of drug-store flu shots. Quartz. https://qz.com/1722940/ten-years-ago-h1n1-swine-flu-ushered-in-drug-store-flu-shots. Published October 6, 2019. Accessed November 3, 2022.

9.Industry market research, reports, and Statistics. IBISWorld. https://www.ibisworld.com/industry-statistics/number-of-businesses/pharmacies-drug-stores-united-states/#:~:text=There%20are%2027%2C462%20Pharmacies%20%26%20Drug,increase%20of%200.7%25%20from%202021. Accessed November 3, 2022.

2. 29-1051 pharmacists. United States Department of Labor. https://www.bls.gov/oes/current/oes291051.htm#st. Published March 31, 2022. Accessed November 2, 2022.

3.The Pharmacist Workforce. United States Department of Health and Human Resources. https://www.umes.edu/uploadedFiles/_WEBSITES/PharmD/Content/pharmaciststudy.pdf. Published 2000. Accessed November 3, 2022.

8.Hawryluk M. Covid shot in the arm not enough to keep pharmacies in business. Fierce Healthcare. https://www.fiercehealthcare.com/finance/covid-shot-arm-not-enough-to-keep-pharmacies-business. Published May 5, 2021. Accessed November 3, 2022.

1.Home | NCPA. NCPA. https://ncpa.org/sites/default/files/2020-10/2020-Digest.pdf. Published October 2020. Accessed November 3, 2022.

7.2021 trends and opportunities for Community Pharmacy. Join Health Mart. https://join.healthmart.com/business-and-operations/2021-trends-and-opportunities-for-community-pharmacy/. Published February 25, 2021. Accessed November 3, 2022.

6.Walgreens turns to robots to fill prescriptions, as pharmacists take on more responsibilities. CNBC. https://www.cnbc.com/2022/03/30/walgreens-turns-to-robots-to-fill-prescriptions-as-pharmacists-take-on-more-responsibilities.html. Published March 30, 2022. Accessed November 3, 2022.