10 Pharmacies are Closing Everyday. How to Avoid Becoming a Statistic

Thousands Of Pharmacies Are Permanently Shutting Their Doors 

Communities around America are losing equitable access to healthcare because pharmacies are closing their doors for good. Already this year, 2,275 pharmacies have been shuttered. The  research done by Benjamin Jolley  tells the tragic tale. Since January 1, 2024, on an average day, nearly:     

• 5 pharmacy owner-operators have closed their businesses permanently    

• 5 chain pharmacy Pharmacists-in-Charge have had their stores closed    

• 11 neighborhoods lost their pharmacy  

• 110 pharmacists and pharmacy technicians have been laid off  

  
  

  

There is a perfect storm in the pharmacy industry, and independent owners are attempting to navigate it on their own. Ultimately, these closures come down to three things: 1) negative cash flow, 2) ineffective strategy, and 3) isolation.   

How did we get here? 

Pandemic related revenue (testing and vaccinations) and stimulus money (PPP, EIDL, ERC) are gone.   

• Reimbursements on core patient scripts are the lowest they’ve EVER been.   

• DIR-fees (now assessed at the point of sale) have reduced top-line revenues dramatically. 

• Third-trimester 2023 DIR-fee assessments (which hit in March, April and beyond) robbed pharmacies of their cash-reserves.  

The impact of this operating environment is having a devastating effect on community pharmacy owners:   

• Many pharmacy owners are now carrying past-due balances with their wholesalers.   

• Too many historically profitable pharmacies are now losing money every month.   

• Some pharmacy owners are jeopardizing their businesses by using MCA/receivables financing without a plan to pay them back.   

Our data indicates that the vast majority of pharmacy owners have no idea of how their pharmacies are actually performing, month-to-month. They are focused on how to pay their bills because they have no cash. The fact is, tight cash flow isn’t the problem - it is a symptom of other problems in your business.  

 If you’re struggling to pay your bills, too, DON’T LOSE HOPE! There is a proven strategy that will help you take the corrective action required to get your pharmacy headed in the right direction. 

There is a solution! 

HealthGrowth has developed a 3-Step process that has helped hundreds of pharmacy owners get back on track. The strategy is: 

STEP 1 – ACCESS WORKING CAPITAL TO ADDRESS NEGATIVE CASH FLOW 

STEP 2 – CREATE AND ADOPT AN OPERATING STRATEGY THAT DELIVERS PROFITS 

STEP 3 – CONNECT WITH OTHER PHARMACY OWNERS TO END YOUR ISOLATION 

Breaking it Down  

STEP 1 – ACCESSING ADDITIONAL CAPITAL   

Cash is oxygen to a business and too many pharmacies have depleted their cash reserves. Obtaining a line of credit provides a lifeline that can help you pay your bills, but it won’t fix what’s broken in your business. If your pharmacy is losing money, it is critical to have a plan to make your business profitable BEFORE you borrow money. Otherwise, you are just kicking the can down the road and adding toxic debt to your Balance Sheet.. 

Obtaining THE RIGHT financing is critical. Dozens of pharmacies apply for lines of credit through PharmLine every month because their process assures borrowers get loan products that are consistent with their needs. Whether it is an SBA BOLT loan through CREDITBENCH or a financing through KAPITUS  ,  LENDIO  or  QUANTUM, PharmLine delivers options that are suited to your circumstances. The process is fast and easy and many loans are funded within days after the application is received. 

Whether you need $50,000, $500,000 or a million dollars, PharmLine has you covered. 

STEP 2 – CREATING AND ADOPTING AN OPERATING STARTEGY THAT DELIVERS PROFITS 

Once fresh capital has financially stabilized your business, you need to carefully and thoroughly review your financials with an advisor to identify what you’re doing right and what you’re doing wrong - someone with a fresh pair of eyes and decades of experience who can help you to objectively evaluate your operating strategy. The experts at HealthGrowth Pharmacy Solutions help turn vulnerable, money-losing pharmacies into healthy, successful and profitable businesses. Their consultants begin with an in-depth analysis of your business, both financially and operationally. Then, they build a specific strategic operating plan that addresses your pharmacy’s deficiencies (bloated expenses, low gross profit, patient/script unprofitability, etc.) and accentuates your strengths and what’s working in your business. Finally, and most importantly, HealthGrowth’s team will work with you and your employees on a weekly basis to assure that your strategic plan is implemented quickly and efficiently.   

Once your business is turned-around and profitable, HealthGrowth will help you secure a bank-rate, long-term SBA 7a loan that will refinance your debts so you are left with a low, monthly loan-payment your newly-rejuvenated, profitable business can easily afford. 

STEP 3 -   BECOMING PART OF A COMMUNITY / NETWORK OF PHARMACY OWNERS 

Joining a thriving community can be a make-or-break factor in successful endeavors. That is why Pharmacy Survival Guide was created – to build and cultivate a network of successful independent pharmacy owners. PSG forums provide pharmacy owners platforms where peers exchange ideas, compare best-practices, share profitable clinical strategies and collectively problem-solve. 

Pharmacy owners no longer need to navigate through the most difficult operating environment they have ever seen, in isolation. Pharmacy Survival Guide brings peers together and fosters new professional relationships in a trusted safe harbor where collaboration makes everyone more successful.  

You’ve  Got This!  

Change is hard, but in this environment, if you aren’t pivoting and changing the way you operate, you’re on the wrong track. If you are struggling to make ends meet and looking for solutions, you are not alone. Proven strategies exist that can turn your business around and steer you down the right path BUT it requires decisive action and discipline. 

Need Help?  

Schedule an exploratory call today at this LINK and learn how you can start your journey today towards financial security and success.