PORTLAND, Ore. — Big-box chain stores and other large pharmacies, including Walgreens, are moving ahead with plans to close hundreds of pharmacies next year.
Now, independent pharmacy owners say they're facing their own problems, ranging from low reimbursement rates to a lack of capital for volume purchases.
Daniel Lee, owner of Fairley's Pharmacy, a Portland landmark that opened in 1913, said he "nearly pulled his hair out" dealing with intermediary insurance groups called pharmacy benefit managers, or PBMs, which determine reimbursement rates for prescriptions.
"We just want to take care of our patients and be compensated fairly for taking care of our patients," Lee said. "But I would say PBMs are making it very difficult for us."
Lee said he isn't fully reimbursed for many of the brand-name drugs he supplies for customers who request them.
Even with business picking up since the pandemic years, he said he still considers independent pharmacies a "dying breed." He said loyal customers keep him in business.
"I believe in building relationships in order to provide good care," Lee said. "You will definitely feel that here."
The Fairley family opened the soda fountain and pharmacy in 1913. Neighbors who live near the shop on Northeast Sandy Boulevard know Fairley's Pharmacy as the triangle-shaped business on the corner. It's also known for its milkshakes, sodas and coffee.
Regular customer Nick Bouvia has fond memories of the soda fountain.
"My dad used to take us here for cherry sodas and stuff like that," Bouvia said.
Customer Wendy Chase said she moved to Vancouver but still makes the 20-minute drive to get her prescriptions at Fairley's.
"It's just always been really friendly here," Chase said. "It's just nice."
After working as a pharmacist at Walgreens for 15 years, Lee and his family bought Fairley's in 2020, during the height of the pandemic. Lee, the fifth owner, struggled to maintain staff during COVID-19 but enjoyed the change from working at a large chain pharmacy.
"I believe there's more freedom here in an independent pharmacy setting," he said.
He now offers compounding for custom-made drugs, as well as bubble-wrapped prescriptions for local nursing care facilities.
Lee said these services aren't available at many large pharmacies. He also said customers smile when he greets them by name.
"The relationships we have with our patients is the lifeblood of our business," Lee said. "Without it, I don't think we can do what we do."
