Buffalo, N.Y. (WBEN) - Drug stores used to saturate cities and towns, but over the past two years, the pharmacy landscape has changed in Western New York and around the country.
Drug store chains have been shuttering down stores. Over 2,000 have closed since 2022, with Rite Aid leading the way after filing for bankruptcy in 2023.
"This is affecting people in every community," said Don Arthur, Pharmacist and owner of Brighton Eggert Pharmacy in Tonawanda, and Black Rock Pharmacy in Buffalo.
"Going forward, it's going to look a lot worse. We're going to see more closings unless we get some relief."
The relief Arthur is talking about is due to something called PBM: Prescription Benefit Managers.
There are currently three of them. Express, Optum and CVS Caremark. Arthur says they control a majority of prescription claims that are processed in the U.S.
Arthur describes them as middlemen who are extracting a large piece from the health care system. Here in Western New York, Arthur says Highmark Blue Cross and Univera are working very closely with these PBMs.
"It's having an effect on patients, especially seniors. Rite Aid at Colvin and Sheridan in Tonawanda closed within the last few weeks. It was one of the busier pharmacies in Western New York. Busier than my two pharmacies. You have to ask the question, why would an extremely busy pharmacy go out of business? This is not mismanagement," he added.
Some say these chains expanded too quickly, but Arthur points out that they're not shrinking down. They're completely leaving markets. Patients are being left without pharmacies.
"We've always been competitors, but today, on this issue, we're allies" he said.
Arthur noted that small independent pharmacies have always stayed in their lane. They've never attempted to market themselves, but now they're welcoming patients from closed pharmacies.
Walgreens hit a 30-year stock market low on Tuesday, while CVS is preparing to close 900 stores.
Arthur says it has become too difficult for many of these pharmacies to survive in this environment with prescription benefit managers.
"We all need relief, the chains and the independent pharmacies, or we'll see more closings," he added.