Bessemer City's Robinson Pharmacy closing on August 22
Robinson Pharmacy, a locally owned independent pharmacy in Bessemer City, will close its doors on August 22, marking the end of a little more than a year in business. Owner Fatmir Fejzullahu announced this decision, attributing the closure to unsustainable reimbursement rates in the pharmaceutical industry—a challenge affecting independent pharmacies nationwide.
On July 24, Robinson Pharmacy took to Facebook to share the news with the community. The post read, "Dear Bessemer City Community, It is with mixed emotions that we are announcing that Robinson Pharmacy will be permanently closing on Thursday, August 22, 2024. This decision has not been easy, but the current state of pharmacy reimbursement has made it too difficult for an independent pharmacy like ours to remain open."
The post continued, encouraging customers to transfer their prescriptions to other pharmacies. "We will continue to fill your prescriptions as long as we have it in stock. Please begin making your transfer requests to the pharmacy of your choice—we are here to help and make this a smooth transition for you. It has been our great pleasure to serve this community, and we have been incredibly fortunate to have your support and trust. For that, we are eternally grateful."
In an interview with The Gaston Gazette, Fejzullahu expressed his disappointment: "I always dreamed of having my own pharmacy, serving the community that I serve, and being able to help people." His dream, however, was hindered by the increasingly challenging financial environment created by pharmacy benefit managers (PBMs).
In the article by The Gaston Gazette, Caroline Eason, a third-generation pharmacist whose family owns TAS Drug in Cherryville, Maiden, and Lincolnton, shed light on the role of PBMs in the industry. "In between the pharmacy and the insurance company is something called a pharmacy benefit manager; they're middlemen. They don't actually serve any purpose other than negotiating rebates for the insurance companies on brand-name drugs," Eason explained. "They also set the patient's copay, so when we say, 'Hey, we billed your prescription to your insurance,' we actually billed it to the PBM, and the PBM gave us back the price on behalf of the insurance company."
Eason highlighted the financial strain these middlemen place on independent pharmacies. "The problem is, when we submit a claim for reimbursement… say it costs a total of $7 to fill a prescription, we're not reimbursed but maybe $4. So we're reimbursed negatively, and then that money is kept by the pharmacy benefit manager," she said.
The consequences of these financial pressures extend beyond the pharmacies themselves, impacting patients directly. Fejzullahu and Eason both noted that the lack of competition in the pharmacy industry could lead to inflated copays for patients, restricted access to vital medications, and a reduction in the availability of preliminary medical knowledge.
Bessemer City, home to only a handful of drugstores, faces an uncertain future with the closure of Robinson Pharmacy. The only other pharmacies in town are Central Drug Store, located downtown, and CVS on Gastonia Highway. Fejzullahu warned of the potential dangers of relying on just one major pharmacy chain in the community. "When you have that much reliance on one company, imagine if CVS decides to close the pharmacy that is right next to us. The community would be devastated. That's where the concern is because you've got that one player. They decide to close their doors tomorrow, and now you've got an entire town and population that is not served. Some of these are life-saving medicines," he said.
Efforts are being made at the legislative level to address these challenges. North Carolina Representative Wayne Sasser, who has worked in the pharmacy industry for over 50 years, has actively pushed for House Bill 246. The bill, introduced in March 2023, aims to reform how pharmacies are reimbursed by calculating the cost of medicine plus the cost to fill the order, thereby reducing the financial strain on independent pharmacies. Although the bill passed unanimously in the House, it has since stalled in the Senate's Rules and Operations Committee, awaiting further discussion.
"The bill is legitimate. It's a fair bill, and it's been validated by the Supreme Court," Sasser stated. "Big insurance is holding up the bill, and that's all there is to it." If the bill is not addressed before the end of the current session, it will be considered dead.
Independent pharmacies like Robinson Pharmacy play a crucial role in rural communities, representing 52% of all retail pharmacies. However, the financial pressures imposed by PBMs push many of these small businesses to the brink. Between 2010 and 2019, the number of independent pharmacies increased by nearly 13%, while chain stores saw a slight decrease. Despite this growth, the challenges posed by PBMs threaten the survival of these community-focused businesses.
The Pharmaceutical Care Management Association (PCMA), representing PBMs, argues that their role is essential in negotiating lower drug prices and managing prescription drug plans for over 275 million Americans. However, critics say that the rising fees associated with PBMs are squeezing independent pharmacies out of business and limiting consumer choice.
A 2018 Consumer Reports (CR) study highlighted that consumers still prefer independent pharmacies' personalized service. Independent pharmacies earned high scores for courtesy, helpfulness, speed of service, and pharmacist knowledge. In contrast, large national chain pharmacies ranked lower in these areas.
Daniel Holt, a CR member from New York City, described his local independent pharmacy as a "neighborhood gem," stating, "I'd rather give my money to small, local businesses who are part of my community." However, the growing influence of large corporations like Amazon, which entered the prescription drug business a few years ago, and the recent merger of CVS Health and Aetna pose significant threats to the survival of independent pharmacies.
These mergers could lead to restricted consumer choice, with patients being steered toward specific pharmacies or in-house clinics, thereby reducing the availability of independent options. According to the National Community Pharmacists Association (NCPA), independent pharmacies filled one-third of all retail prescriptions in the United States in 2018, a number that increased to 34% by 2021.
Robinson Pharmacy's closure reflects the broader challenges independent pharmacies face nationwide. As the industry continues to evolve, the future of small, community-oriented pharmacies remains uncertain. For Bessemer City residents, the loss of Robinson Pharmacy serves as a stark reminder of the impact of industry consolidation on local communities.
For now, Robinson Pharmacy will continue to operate until August 22, providing services to its customers as long as supplies last. The pharmacy is clearing its existing inventory at heavily discounted prices. Existing pharmaceutical customers are encouraged to make prescription transfer requests as soon as possible to ensure a smooth transition.
Robinson Pharmacy is located at 805 Gastonia Highway, Bessemer City, NC 28016. It operates Monday through Friday from 9 a.m. to 5 p.m. and is closed on Saturdays and Sundays. For more information and customer assistance during this transition, call (704) 729-6171.
