GRAND RAPIDS, Mich. — Research shows that the 12 Rite Aid location closures across Michigan fall in line with pharmacy closures across the nation- suggesting pharmacies everywhere are feeling pressure and not all can withstand it.
Researchers from the University of Pittsburgh spent ten years mapping Pharmacy closures across the U.S. All of which were tracked to an interactive map showing the number of pharmacy closures over time.
As the years go on, largely populated areas, including West Michigan, have seen large amounts of closures. Lucas Berenbrok, an Associate Professor at the University of Pittsburgh's School of Pharmacy, was one of two researchers involved. He said that could put people in tougher positions- making the drive to receive lifesaving medication longer.
"The impact is accessibility to healthcare," Berenbrok said. "The pharmacy's special sauce as a health care location is that we're accessible to people. We're open nights, weekends, evenings, holidays."
"That accessibility is important to maintain by keeping pharmacies open," Berenbrok added.
On Monday, Rite Aid announced the closure of 12 locations across the state:
- Livonia, Michigan (37399 Six Mile Rd, Livonia, MI 48152)
- Burton, Michigan (G4033 Fenton Rd, Burton, MI 48529)
- Burton, Michigan (6026 Lapeer Rd, Burton, MI 48509)
- Flint, Michigan (4519 Richfield Rd, Flint, MI 48506)
- Ludington, Michigan (936 E Ludington Ave, Ludington, MI 49431)
- Wyandotte, Michigan (1998 Biddle Ave, Wyandotte, MI 48192)
- Spring Lake, Michigan (603 E Savidge St, Spring Lake, MI 49456)
- Bay City, Michigan (3880 Wilder Rd, Bay City, MI 48706)
- Marlette, Michigan (2985 Main Street, Marlette, MI 48453)
- Grosse Pointe Farms (107 Kercheval Ave, Grosse Pointe Farms, MI 48236)
- Milford, Michigan (640 N Milford Rd, Milford Charter Twp, MI 48381)
- Allen Park, Michigan (15411 Southfield Rd, Allen Park, MI 48101)
A woman who said she works for the Rite Aid in Spring Lake, MI, posted to the Facebook group Grand Haven Informed, saying their location is just one of the first to go and that eventually all Rite Aid locations in both Ohio and Michigan will be closing.
"We know as much information as the public does, and are unsure of the outcome with the building," read the post.
13 ON YOUR SIDE has reached out to Rite Aid's corporate offices numerous times to get confirmation on whether or not all locations will be closing. They have not responded.
Berenbrok said that across the nation, other communities are seeing similar closures- likely tied to stipends given back to pharmacies.
"The thing that's on everyone's mind right now probably the most important issue for pharmacy in 2024 is reimbursement rates," Berenbrok said.
Reimbursement rates, Berenbrok explained, are the amounts of money pharmacies get paid to dispense medication to a patient.
"Those reimbursement rates have been shrinking and shrinking and shrinking to the point where, in some cases, the business model the pharmacy is no longer in the black, or they can't pay their staff or keep their lights on," Berenbrok said.
While these rates apply to both chain and independently owned stores across the nation, Berenbrok said it's not always an even playing field.
"The independently owned or the franchise or the small chain pharmacies feel it the most because they don't have the power of 1000s of locations to kind of make up that difference," Berenbrok said.
This means that for less populated areas, which frequently rely on independently owned pharmacies, distances to the next nearest store could increase dramatically.
"That might mean that a person doesn't have time to pick up a medication that's going to keep them from having a heart attack or stroke," Berenbrok said.
Through his research, Berenbrok hopes to find the core problems and solutions of pharmacy deserts. Highlighting the importance of keeping pharmacies open- chain or local.
"The pharmacy is really that cornerstone of keeping people, you know, healthy in local communities," Berenbrok said. "We're hoping that we see some change to make sure that pharmacies can stay open."
Mike Koelzer is the third generation of Kay Pharmacy in Grand Rapids. His family has locally owned the business for 80 years.
Koelzer agrees with Berenbrok's findings- saying that national regulators are putting pressure on his business.
"Pharmacy right now is pretty tough," Koelzer said. "Our revenue comes from three different pharmacy benefit managers. That's about 90% of our revenue. And so they can pretty much set the standards and the pay for us."
Koelzer said since they have the ability to change cost, it put his business at the will of regulating. Making Kay Pharmacy find ways to stay afloat.
"We're doing what we can to hang on," Koelzer said. "We had to stop carrying brand name medicine, because these pharmacy benefit managers were paying us way below cost."
In his experience, Koelzer said the fluctuations in payouts leave pharmacies with tough decisions- often times taking a loss on profits to provide adequate care.
"We still like to care for people at the same levels, so we're not going to be nasty with Mrs. Smith when she comes in because her insurance isn't paying us enough," Koelzer said. "We're gonna be the same pharmacy we always are."
However, not all pharmacies can handle the pressure. Leaving some to steer the ship until they can't anymore.
"You see with Rite Aid is it goes and goes, and then it just drops off a cliff. It just drops off," Koelzer said. "It's gonna leave pharmacy deserts."
Koelzer said Rite Aid's closure in bigger cities like Grand Rapids, likely won't have that large of an impact. In smaller cities, Koelzer said, the impact is seen.
"When those pharmacies close down, there's not another pharmacy for 10, 15, 30 miles," Koelzer said. "That's where the big problem is."
Koelzer said that the solution comes from the government not giving handouts, but lowering the power of the middleman. Koelzer said laws have already been passed in the state addressing the issue. It's only a matter of time, he said, until change comes.
"You got very expensive drugs with very little reimbursement to pharmacies, often below cost, and that portion right there in the middle, that's what the pharmacy benefit managers are taking without giving any care to the system," Koelzer said. "That's where these laws in Michigan have finally said, this is illegal, but that's going to take a few years, so we're trying to hold on while that happens."
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