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Kansas City pharmacies are closing, and pharmacy benefit managers are a big reason why

This Walgreens at 63rd and Troost Ave. is among the many pharmacies across the county to close their doors this year.
Carlos Moreno
This Walgreens at 63rd and Troost Ave. is among the many pharmacies across the county to close their doors this year.

Pharmacy closures nationwide are leaving some communities at risk, including in the Kansas City area. Experts say pharmacy benefit managers are what's driving drugstores out of business.

Carol Vaughan, a 62-year-old uninsured patient in Kansas City, said it was "difficult" after the Duchesne Clinic she used to fill prescriptions for more than 10 years closed.

Across the country, more than 7,000 drugstores have closed their doors, creating pharmacy deserts in some areas and overwhelming other pharmacies with new patients.

When the Duchesne Clinic closed its doors in Kansas City, Kansas, more than 1,000 patients had to find a new location to fill their prescriptions. Some turned to Pharmacy of Grace, a nonprofit pharmacy.

"We've had about almost 400 patients come our way so far, but there's still people that are trying to find a provider," said John Yost, co-founder and board chair of Pharmacy of Grace. "And part of the issue is, just like every clinic, you have only so many slots to put people in, so people are still finding providers, even now."

Yost told KCUR's Up To Date that pharmacy benefit managers (PBMs) are driving the closures.

New York Times health report Reed Abelson, who investigated PBMs, describes them as the middleman between the pharmacy and patient, and between employers and health plans.

PBMs control 80% of the prescription drug market, and are responsible for negotiating rates, including patient co-pays and pharmacy reimbursement rates. Because the PBMs control so much of the market with little oversight, pharmacies have little leverage to negotiate contracts and costs.

Yost wants to see state regulations to ensure PMBs are reimbursing at a fair rate.

"These companies thrive in the lack of transparency and the fact that the system is so convoluted that it's very difficult to tell why you're paying, what you're paying, even how much you're paying compared to other people; how much the pharmacy benefit manager is pocketing," Abelson said.

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When I host Up To Date each morning at 9, my aim is to engage the community in conversations about the Kansas City area’s challenges, hopes and opportunities. I try to ask the questions that listeners want answered about the day’s most pressing issues and provide a place for residents to engage directly with newsmakers. Reach me at steve@kcur.org or on Twitter @stevekraske.
Josh is the 2024-2025 Up To Date intern. Email him at jmarvine@kcur.org.
As a producer for Up To Date, my goal is to inform our audience by curating interesting and important conversations with reliable sources and individuals directly affected by a topic or issue. I strive for our program to be a place that hosts impactful conversations, providing our audience with greater knowledge, intrigue, compassion and entertainment. Contact me at elizabeth@kcur.org or on Twitter at @er_bentley_ruiz.
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