OSKALOOSA, Iowa — The owner of an independent pharmacy in Oskaloosa says he may have to close the business after making no profits for over 80% of the prescriptions it filled so far this year.
Mahaska Drug is an award-winning and community-oriented independent pharmacy in Oskaloosa that has been owned by John Nicholson and his wife since 1993.
“We came into the store numerous times after midnight to get a medication for one of the nursing [home] residents, or we came in and got it for a patient that had an eye injury and needed an antibiotic,” said Nicholson, “We don’t mind doing it. That’s part of being a community pharmacy, it’s taking care of your community.”
Nicholson said that there have been many times when he would give customers their medication even if they couldn’t afford their co-pay.
Republican amendment could mean death to all THC-infused beverages in Iowa“It’s the right thing to do if you can do it, but we reached a point now where we can no longer do any of that. I’m not sure we can even keep our doors open,” he said.
He said that the future of his pharmacy is bleak. On the one hand, the business is increasing and it is busy, but on the other hand, it’s making no profit.
“We are not being paid what it even costs us to purchase some of the drugs,” Nicholson said, “And if you figure in what it costs us to dispense the drugs.”
In 2022, Iowa found through its Medicaid Program that it costs $10.97 to fill a prescription, but Mahaska Drug’s average is less than $5 on commercial and Medicare plans. As a result, the pharmacy hasn’t made a profit for over 80% of the prescriptions it has filled so far this year.
This is a problem that is evident across the state. Back in October, Dr. Michael Andreski, a professor of pharmacy at Drake University conducted research that concluded pharmacies across the state are closing at an alarming rate.
In October, Adreski said, “[Pharmacy Benefit Managers] got involved with rebates, deals, and they’ve basically taken the money that was going to the pharmacies for providing services and they’ve taken that and used that for their own purposes… The three largest PBMs in the country, which they control over 75% of the prescriptions filled in the United States, and their profits last year were in the Fortune 15. So, basically, pharmacies are being slowly strangled so these companies can have huge profits.”
A pharmacist at Mahaska Drug, Shania Wilz, is an alumna of Drake University. She said that she’s worked at the business for 15 years.
“It’s extremely frustrating,” she said, “I went to school to care for people and provide the best care I can give them, and I can’t do that because the PBMs are hindering what I can provide to people.”
Initiative to help older Iowans stay in their homes spreads across the stateThere are two other pharmacies in Oskaloosa, Walgreens, and Hy-Vee, which aren’t independently owned. However, Andreski’s research found that even corporate pharmacies aren’t immune to this issue.
Wilz said, “At Walgreens and Hy-Vee, they cut their staff down to like one pharmacist, so who’s to say that they’re hiring and if we take out all the independents, there’s going to be tons of pharmacists that don’t have jobs.”
Nicholson prides himself on providing a positive work environment, by providing full-time employees with a livable wage, health care, dental, and retirement plans.
“I feel that’s a responsible thing for a business to do, it’s as simple as that,” said Nicholson.
Aside from pharmacists being impacted, residents will also be affected by this problem.
Nicholson also said that corporate pharmacies aren’t as interconnected to the community as independent pharmacies. He said that the likelihood of a corporate pharmacy donating money to community events and organizations, or working after hours to supply nursing homes with last-minute prescriptions, or giving customers necessary medications for free, is low.
“I don’t know what I would do,” said Jean Scott, an Oskaloosa resident, “I would definitely hate to see that because they call you by name when you come in and they got that small town feel. I would really miss them and I hope that doesn’t happen.”
Nicholson said that there needs to be drastic reform to change the reality of his pharmacy. He’s urging people to reach out to state senators and representatives to help push for legislation.
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