The supermarket near my house rennovated part of the store last year and put in a pharmacy. Across the street is an Eckerd, one traffic light away is a Drug Fair, about a half mile away is a Rite-Aid, and maybe a mile and a half the other way is a CVS. Throw in a smattering of some other local pharmacies in the town and a Target with a pharmacy nearby. They all share one thing in common – they were all around before this supermarket put in it’s new pharmacy last year – and now, they’re all around after this failed experiment.
This weekend I went shopping and noticed the pharmacy shuttered with a sign saying that all prescriptions have been transferred to Drug Fair. “Due to business considerations”, the sign says the pharmacy has been closed.
running a pharmacy can’t be an easy thing – I’d imagine that there’s an outlay of at least $150k in payroll, minimum, per year. Maybe I’m off base and that number is much higher or much lower, but either way, I didn’t see this phamarcy doing very well. It’s not suprising that this one closed so soon.
But as one pharmacy closes, New Jersey pharmacies are about to undergo a radical change in the retail landscape as Governor Jon Corzine signed legislation that will establish a website allowing consumers to comparision shop for prescription drugs. From the AP:
Under the legislation, the Division of Consumer Affairs will establish and maintain a state prescription-drug retail-price registry that will be updated at least weekly. The Web site, which will be in English and Spanish, will allow visitors to comparison-shop for prescription drugs by name, dosage and ZIP code, the Governor’s Office said. The information will also be available on a toll-free hotline and at pharmacies in the state.
There is a similar website/service in New York (www.nyagrx.org) which reportedly has helped bring prescription drug prices down $17 per prescription.
As a resident in New Jersey, I’m really excited for this service. The Internet has long given consumers the ability to research products and shop for the best deal. As energy prices have risen, so have websites that allow you to find the best gas price in your neighborhood. Putting this kind of information out there, in a very accessable way, gives consumers the information they need to make smarter choices. I believe it also leads to better service, as everyone is now competing harder for the same dollar.
This change will be great for New Jersye consumers, but it will make a very competive retail enviroment even more cut-throat. If this spurs competition and drives prices down, how will pharmacuetical retailers like CVS and Eckerd react? Will this hurt local pharmacies more and give an edge to national chains?
If anyone has any information on how this has actually affected the pharmaceutical retail landscape in New York, and other states that have these comparision web sites, I’d be very interested in hearing about it.
[...] the other day, I talked somewhat about the pharmaceutical retail industry in New Jersey. In a word, it’s crowded. Like I said the other day, before I even take a look [...]