Since opening in 1922, my pharmacy, St. Paul Corner Drug, has been a trusted source in serving all of the health needs of our neighbors. However, it’s becoming much more challenging for independent pharmacies to survive. While our doors have remained open, many others in our state have not been as fortunate.
The reality is stark: In 2023 alone, 24 independent pharmacies in Minnesota closed their doors for good. These closures represent a loss of accessible healthcare for communities, particularly in underserved areas. Staffing shortages, rising costs, and an increasingly complex healthcare landscape are just a few of the challenges contributing to this alarming trend.
One resource that has been invaluable to independent pharmacists like me is pharmacy services administrative organizations, or PSAOs. These organizations provide critical business and administrative support, helping us navigate the many nonclinical aspects of running a pharmacy. Over 80% of independent pharmacies nationwide rely on PSAOs for assistance with tasks like compliance, operational optimization, and interactions with pharmacy benefit managers (PBMs). I happen to be a proponent of Independent PSAOs which I have found work best with my independent pharmacy.
For roughly $200 a month, PSAOs take on time-consuming administrative burdens, allowing pharmacists to focus on what truly matters: patient care. This partnership ensures that independent pharmacies can remain competitive and continue serving our communities.
It’s important to clarify what PSAOs do — and don’t — do. While they work on behalf of pharmacists, advocating for fair treatment and better terms in negotiations with PBMs, they do not set drug prices or influence patient costs. Their sole focus is supporting pharmacists, helping us manage the behind-the-scenes operations that keep our doors open and our communities healthy.
The stakes couldn’t be higher. At its peak, Minnesota had around 500 non-chain pharmacies. But today, that number has dwindled to approximately 110. Each closure represents not just a loss for the pharmacy’s owners but also for the local economy and, most importantly, for the patients who rely on these trusted health care providers. PSAOs offer a lifeline, enabling independent pharmacies to overcome challenges and continue providing vital care and Services.
As a small business owner, I’m proud of the role St. Paul Corner Drug plays in our community. We don’t just fill prescriptions — we counsel patients, administer vaccines, and serve as a reliable health care resource for our neighbors. But sustaining this level of service isn’t easy, and without the support of PSAOs, it would be more difficult than ever.
Policymakers and community leaders must recognize the importance of PSAOs in supporting independent pharmacies. For over 100 years, we’ve been committed to caring for our neighbors. With the continued support of PSAOs, independent pharmacies like mine can keep that commitment alive for generations to come.
John Hoeschen is a pharmacist and the owner of St. Paul Corner Drug.