By Sen. Keith Kelley
Since my first day in the Alabama State Senate, I have pledged to be an ally for small businesses.
Recently, I have become aware of the issues plaguing some of our state’s most important small businesses – the hundreds of independent pharmacies across Alabama.
Decades ago, our street corners were filled with these often family-run shops, who did everything they could to ensure their communities access the best health care possible. I know first-hand that the friendly, personalized service these pharmacies offer can make a world of difference for patients who are struggling with health issues. However, since the COVID-19 pandemic, too many independent pharmacies in Alabama and across the country have felt the squeeze from pharmacy benefit managers.
Meanwhile, pharmacists must work increasingly long hours and suffer from burnout at exorbitantly high rates.
As their margins decrease and their businesses become strained, too many independent pharmacists face a decision they never thought they would have to make choosing between what is best for their business or what is best for the patients they serve. To confront these growing challenges, many independent pharmacies contract with pharmacy service administrative organizations.
The PSAOs primarily provide administrative resources and support, ensuring that pharmacists in our state can understand and take on complex business decisions. The bright side of PSAOs is that they do not have much authority over the health care ecosystem – they do not set prices on medication, decide which treatments patients receive coverage for, or even determine how much pharmacies receive in reimbursements. Instead, they truly work for independent
pharmacies in our state.
Most importantly, as independent pharmacies struggle to deal with PBMs, their PSAO is a crucial line of support, navigating these interactions and ensuring the pharmacy’s needs are met. Not only do these resources help advance the interests of our state’s independent pharmacies, but they help ensure that pharmacists can spend their time caring for patients, dispensing life-saving treatments, and helping to build a healthier Alabama.
In my time in the state Senate, I have heard too many stories of Alabamians losing their business due to the vast complexities of our health care system. Simply put, you should not need an MBA to make it by as a small business owner in the country — you just need to be passionate about what you do.
Thankfully, through partnerships with the PSAOs, the dream of owning a successful small business and serving the vital health needs of our communities may still be open to the next generation of independent pharmacists here in Alabama.
Keith Kelley serves in the Alabama State Senate representing Calhoun and Talladega counties.