Four drug stores owned by the company HomeTown Pharmacy are permanently closing their doors due to “financial strain caused by pharmacy benefit manager (PBM) reimbursement practices.”
The company released a press release announcing the closures early Tuesday morning.
“We regret to inform our patients and communities that several pharmacy locations have closed,” HomeTown Pharmacy stated in its release. “We recognize the hardship these closures create for patients and healthcare providers, and we are committed to minimizing disruptions in care.”
The company is shutting down three locations in Traverse City and one in Muskegon.
Pharmacy advocacy groups have blamed the decline of independent pharmacies on the business of PBMs, which act as middlemen between drug manufacturers, pharmacies and patients.
Independent advocates such as American Pharmacies have been voicing concerns to state lawmakers about PBMs.
“They control what patients pay for their medicine, which are covered by their insurance," American Pharmacy Vice President and General Counsel Miguel Rodriguez said. “They control where a patient can go to get their medicine covered, and they control how much a pharmacy gets paid for dispensing medicine to a patient.”
PBMs have increasingly gained control of different aspects of the healthcare industry over the years. Major PBMs such as Express Scripts, CVS Caremark and OptumRx have opened competitive online pharmacies, while still dictating reimbursement rates for drugstores.
These companies have managed around 80% of all prescriptions filled in the United States, according to the Federal Trade Commission.
According to data from American Pharmacies, 324 independent drugstores closed their doors from 2020 to 2024.
PBMs have repeatedly stated they work to reduce the cost of drugs for patients and have opposed any blame for closures.
“We save Michigan’s business community and its employees money while strengthening health outcomes with the help of our coordinated model, which recognizes the important role that independent pharmacies have today,” previously wrote an Express Scripts spokesperson in an email to WCMU.
HomeTown Pharmacy stated they will continue to operate other locations throughout the Midwest region.
“Despite these challenges, our commitment to our patients remains unchanged. We will continue to provide prescription services, medication counseling, immunizations, and healthcare support through our remaining locations,” the company wrote in a statement. “We are also working closely with affected patients to ensure continuity of care and facilitate prescription transfers where necessary.”
