Independent family-run drugstore shuts down operations following over a century in service.
In the heart of San Francisco's Excelsior District, Central Drug Store, a family-owned pharmacy with roots dating back to the early 1900s, is set to close its doors on July 15, 2023. Owner Jerry Tonelli, who has served as the neighbourhood pharmacist for half a century, announced his retirement and the closure of the store, stating that he is leaving on his own terms and wants to spend more time with his family.
The announcement of Central Drug Store's closure was met with an outpouring of support from customers who expressed the store's importance to the community. One customer said, "I was so sad to hear that you were leaving after all these years of your hard work and dedication to all your customers, there will not be another pharmacist or drugstore like yours." Another customer expressed deep gratitude, stating, "I can't put into words what a blessing Central Drug, Jerry and the Tonelli family have been to me and my family for over 50 years."
Independent pharmacies across the country are facing significant challenges leading to closures, primarily due to financial and operational pressures imposed by pharmacy benefit managers (PBMs). PBMs negotiate drug prices and reimbursement rates, often favouring larger retail chains, which independent pharmacists claim threatens their business models.
Financial pressures on independent pharmacies include reimbursement rates that are insufficient to cover operational costs and lawsuits against PBMs alleging collusion to rig reimbursement rates and impose excessive fees. Operational challenges include increased competition from large retail chains and complex regulatory and compliance issues.
To counter financial pressures, independent pharmacies are diversifying into clinical services such as immunizations and medication therapy management. Some organizations like McKesson are working to support independent pharmacies through backend support and advocacy.
Despite these challenges, Jerry Tonelli is concerned that other independent pharmacies will continue to get forced out by corporations. He stated, "I'm retiring on my own terms, but I worry about what will happen to other independent pharmacies." The Tonelli family credits the customers of Central Drug Store for the store's continued existence.
Vintage pharmacy drawers line the walls of Central Drug Store, a testament to its rich history and personal touch. As the store prepares to close, the Tonelli family reflects on the memories made and the lives touched over the past 50 years. In the words of one customer, "I can't tell you how many lives you have impacted."
- The economic pressure faced by independent pharmacies like Central Drug Store, owing to significant challenges in the markets, often stems from financial and operational pressures imposed by Pharmacy Benefit Managers (PBMs).
- In the realm of health-and-wellness, science continues to be a crucial factor in the development and delivery of clinical services, as independent pharmacies like Central Drug Store diversify their offerings to counter financial pressures.
