Owensboro Family Pharmacy and Wellness announced earlier today that it would close on August 8. The independent pharmacy has served the Owensboro community for the past 39 years, and it cited increasing fees from big pharma as the primary cause.
In the past year, more than 70 independent pharmacies have closed in Kentucky, and owner Jesica Mills said she expects more to close in the coming months and years. She cited a recent change in the system that favors big pharmacy chains.
The system is complex. Essentially, pharmacy benefit managers (PBMs) charge pharmacies direct and indirect remuneration fees (DIRs). PMBS are companies that manage prescription drug benefits for clients. They play a significant role in determining medicine costs. Mills said DIRs are primarily associated with Medicare, and while they were initially used to offer incentives, they’ve transformed into a vehicle for bleeding pharmacies.
“There are three big players: Optum, CVS Caremark, and Express Scripts,” Mills said. Blue Cross Blue Shield will handle all of your medical stuff, but on the pharmacy side, it all falls back on those three. What they’ve been doing for nearly two decades is assessing DIR fees on Medicare patients and pharmacies.”
She said the fees used to be minimal and manageable, but in recent years, Owensboro Family Pharmacy has received DIR bills totaling $280,000. Mills added that the PBRs aren’t even paying enough to cover the costs of drugs, much less the overhead that comes with running a business.
“These insurance companies are taking money from pharmacies, and they’ve been doing it for several years,” she said. “We’ve gone through our savings, and my mom has depleted my dad’s life insurance policy to keep this place open.”
Mills said State Representative D.J. Johnson has been advocating for change at the state level, introducing some new bills to help ease the struggles. She also said there’s new legislation going into effect that should mediate some of the issues but that the big companies had been “taking a big gulp” leading up to the proposed change.
Dan and Daisy Thompson opened the pharmacy in August of 1985 after Dan became disheartened by the lack of personal care and attention the large retail chains were extending to patrons.
“To our loyal customers: Your trust and support have been the cornerstone of our 39 years of success,” Mills said. “You were not just a name or a number; you have been an integral part of our family. We are deeply grateful for the relationships we’ve built and the moments we’ve shared. Your health and happiness have always been our top priority, and serving you has been an honor.”
Mills said they want to ensure a smooth transition. They will be transferring all prescriptions to Kroger at 2630 Frederica Street. She said clients are welcome to seek pharmacy services elsewhere but should understand that all of their prescription histories would be sent there. The transfer of data and prescriptions will go into effect on August 9.
She asked that customers email [email protected] with any questions.
“This is the only job I’ve ever had, and as we step into this uncertain and untraveled territory, we look forward to the next chapter after much prayer,” Mills said. “Dad and I always loved literature and poetry, and the quote from my dad I always remember him quoting was from Robert Frost: Two roads diverged in a wood, and I – I took the one less traveled by, and that has made all the difference.”
Mills said her mother, Daisy, looks forward to spending more time with her grandbabies. Mills plans on being more present for her children and dedicating more time to her career as a consultant, functional medicine educator, author, speaker, and pharmacist in a different capacity.
