Local pharmacist talks about operational challenges 

ALBANY, N.Y. (NEWS10) – As federal lawmakers lower the cost of prescription drugs for some seniors, a local pharmacy owner said the structure that outlines how pharmacies get paid has made operations difficult. And she wants lawmakers to push for more regulations. 

It’s not just a local problem. Those challenges are industry-wide. That’s why the University of Pittsburgh's School of Pharmacy collected data and mapped pharmacy closures across the country. 

Dots on the time lapse map represent pharmacies that have closed. In the city of Albany alone, the data maps eight pharmacy closures in the last six years. 

“Inevitably it seems that the patients suffer,” said Zarina Jalal, who is the supervising pharmacist at Lincoln Pharmacy. 

Jalal’s family owns Lincoln Pharmacy. It’s been serving the community for 90 years. She said they are not at-risk of closing. However, she is speaking out because she said patients have a right to access their pharmacies. 

Although Lincoln Pharmacy is financially stable, they face challenges paying the fees outlined by Pharmacy Benefit Managers - or PBMs, for short. PBMs are third party companies that manage prescription drug benefits between pharmacies, drug manufacturers, and insurance providers.

“Certainly this has been an issue in my pharmacy and pharmacies across the country that oftentimes these DIR fees lead to an under reimbursement, our pharmacies aren’t getting paid enough for the product we are dispensing,” said Jalal.

She broke down what those impacts mean for her business.

“It might cost $100, but these PBMs are forcing us to take contracts that would only pay us $60 or $70. The amount we are paying for the product and then the amount we are getting paid back is less, so it’s basically a loss for us,” said Jalal. She said the situation puts her between a rock and a hard place.

“Since the beginning of the year there’s been one or two products that I’ve decided to stop carrying because the loss is just too much, it doesn’t make financial sense,” said Jalal.

She said it's having an impact on operations for both small independent pharmacies, like her family’s, and on corporate chains.

“They’re giving us access to the patients and they want a cut of what the pharmacies are making,” said Jalal about the PBMs.

The number of pharmacies that have closed in Albany in the last six years makes her concerned for patients. 

“They should still have the right to access their pharmacies, even if it isn't Lincoln. That's where my concern has always been, making sure people have proper access to pharmacies, and felt the need to speak out,” said Jalal.

She expressed concerns over the DRI fee when she tried to negotiate with one Pharmacy Benefit Manager, describing what she told them.

“‘This contract is unsustainable to safely provide pharmacy services to my community, so we welcome the opportunity to serve your patients but we need to have a conversation about the rates.’ But there was no conversation about the rates. They just quietly took us out of the network and moved on,” said Jalal.

Last week, Senator Chuck Schumer was in Albany and highlighted legislation that would lower the out of pocket cost of prescriptions for some seniors . 

“I’m glad to see that patients are being helped, but there’s more to the whole chain than just the patients,” said Jalal.

While she  supports that legislation, she wants lawmakers to help pharmacies as well, so they can help their patients access vital medications.

She wants legislators to take into account pharmacy struggles and push for more regulations of Pharmacy Benefit Managers.

“Senator Schumer's office was very receptive to my concerns about the legislation,” said Jalal.