Rite Aid plans to close a dozen stores in Michigan

Pharmacy chain Rite Aid announced in its latest bankruptcy filings that it plans to close a dozen stores in Michigan. The move is the latest in a string of store closures dating back to late last year. The chain closed stores after filing for Chapter 11 bankruptcy last October.

There is no information yet about possible layoffs or specific timeframes for closures.

The chain is struggling with declining sales and lawsuits over its alleged role in the opioid crisis.

The news is causing concern for both patients and pharmacists, said Eric Roath, director of government affairs for the Michigan Pharmacists Association. “Patients will have to find another pharmacy on their own that can meet their overall needs. That’s quite inconvenient for patients and impacts the continuity of care throughout the health care process,” he said.

And the closures will put pressure on the job market for pharmacists, Roath said. “We were in a situation where the number of new pharmacists entering the job market was almost exactly equal to the need here in Michigan,” he said. “We end up in a situation where pharmacists, members and some of my personal friends are unemployed, in a market that is not necessarily willing to integrate them into available positions,” he said.

Roath said there was no clear solution for the industry.

In addition to declining sales and opioid lawsuits, Roath said pharmacies are also having difficulty negotiating with pharmacy benefit managers, people in this position who act as intermediaries between pharmacies, insurance companies and drug manufacturers.

“Reimbursement rates for prescription drugs are very often – and usually – below the cost of the drug. Pharmacies have no bargaining power in negotiating these contracts and can only buy at the best price offered by their wholesaler,” he said.

Roath said this resulted in pharmacies selling drugs at a loss.

“You can’t stay in business if you’re selling your core product, a life-saving drug, at a loss. That’s why so many businesses are closing,” he said.