Adapt and Thrive Through Pharmacy Consolidation

Change can open doors. Are you prepared to step through?

Between 2022 and 2024, some of the biggest chains such as CVS and Walgreens shuttered around 2,100 stores nationwide. The latest trend is consolidation and vertical integration where insurers, healthcare systems or pharmacy chains acquire or merge with other entities along the supply chain, such as wholesalers, distributors, or pharmacy benefit managers (PBMs}. The aim is to reduce competition and boost profits. However, potential corporate gains are often offset by real risks to patients, staff, management and the communities they serve. This article dives into the repercussions of pharmacy consolidation and offers insights into how pharmacists can adapt and thrive in this evolving industry.

SYSTEM GAINS	EMPLOYEE RISKS
Increased bargaining power with manufacturers and PBM's	Exploitation of market dominance resulting in higher prices and reduced services
Improved medication availability and faster prescription fulfillment	Potential reduction in pharmacy choices and personalized care
Enhanced coordination between pharmacies and healthcare providers	Reduced patient-pharmacist interaction and greater reliance on mail-order pharmacies
Enhanced technology and data integration to reduce medication errors and improve safety	Downward wage pressure, increased staff workload and reduced job satisfaction.

Consolidation and vertical integration are reshaping the profession in significant ways and defining the industry. For pharmacists, these changes present both challenges and opportunities.

Wage changes due to consolidation can be a double-edged sword. Consolidation may mean better employment stability at larger organizations with established financial resources. Yet, increased competition for roles within consolidated entities may place downward pressure on wages resulting in:

• Standardization of pay scales: Larger organizations may implement uniform pay structures, potentially reducing earning disparities but capping incomes at a certain level.
• Consolidated bargaining power: Without small business employers setting competitive salaries, pharmacists may have less leverage to negotiate.
• Reduced job markets in specific regions: If independent pharmacies close, pharmacists may face fewer local opportunities, leading to suppressed salary growth.

There’s a concerning lack of licensed pharmacists in the United States—in fact, the U.S. Health Resources & Services Administration projects a shortage of nearly 5,000 pharmacists through 2036. Demand for pharmacists is poised to increase about as fast as the average occupation. That said, those specializing in high-demand roles – such as clinical pharmacy, research, or executive-level management – might still see competitive compensation as these positions remain critical to the industry’s growth and evolution.

Opening the Door to Career Growth

If you’re willing to adapt and explore new opportunities, pharmacists can position themselves for success in a consolidated marketplace by:

• Upskill for Upward Mobility. Large employers often prioritize professionals with diverse skill sets. Consider pursuing certifications in areas like pharmacogenomics, chronic disease management, or telehealth services to stand out in a competitive job market.
• Explore Leadership Roles. Consolidated entities often offer career paths beyond patient care. Pharmacists with managerial and leadership aspirations can explore roles in operations, corporate strategy, or pharmacy benefit management.
• Join Integrated Healthcare Teams. Consolidation often brings pharmacists closer to interdisciplinary healthcare teams. Seizing this opportunity can allow pharmacists to work collaboratively with physicians, nurses, and other specialists, delivering more holistic patient care.
• Build a Niche. Though consolidated companies aim for efficiency, there’s always demand for niche expertise. Whether it’s specializing in pediatrics, oncology, or rare diseases, focusing on a niche area can make your skills invaluable within large organizations.
• Be Open to Relocation. Consolidated networks often span multiple locations. While rural communities may face challenges, those open to relocating might find opportunities in fast-growing urban or suburban markets.
  

Expanded or Narrowed Scope of Practice?

One of the key debates surrounding consolidation revolves around its impact on the scope of pharmacists' duties. Larger organizations often have greater resources and are better equipped to adopt technological solutions, such as advanced medication management systems and telehealth platforms. These tools could allow pharmacists to shift their focus from administrative tasks toward more clinical roles.
Consolidation also creates opportunities for pharmacists to engage in patient care initiatives that may have been less feasible in smaller or independent pharmacies. For instance:

• Offering comprehensive medication reviews through centralized support systems
• Participating in chronic disease management programs
• Collaborating with healthcare teams within integrated networks

Some worry that consolidated entities may prioritize standardization and efficiency over personalized care, potentially limiting pharmacists’ autonomy in patient interactions. Whether consolidation leads to expanded or restricted scope of practice will largely depend on the corporate culture and priorities of the larger organizations.

Moving Forward in a Consolidated Pharmacy World

Pharmacy consolidation is undoubtedly reshaping the profession, bringing both opportunities and challenges. For pharmacists, adapting to this change involves understanding how to leverage new career paths, using data and technology to enhance patient care, and demonstrating resilience in a shifting industry.

To thrive, pharmacists must stay informed, continually expand their skills, and maintain a focus on what matters most – delivering high-quality care to patients. By doing so, they can help ensure that consolidation serves not just corporate interests but also the well-being of communities and the advancement of the pharmacy profession.

Advance Your Pharmacy Career with Ridgemont Resources

At Ridgemont Resources, we empower pharmacists to reach their full potential by providing top-tier career opportunities and expert guidance. Our solutions are driven by data and analytics, helping our clients achieve their commercial goals while promoting excellence in healthcare. Explore our available positions today and take the first step towards enhancing your pharmacy career.