Area store closes pharmacy

Pharmacy Station to remain open as gift, specialty shop

By Jason Arndt

Staff Writer

The Pharmacy Station will continue offering custom embroidery, screen printing and sublimation as well as a large selection of other gifts at each of its stores.

But, effective Jan. 14, the locally owned business closed the pharmacy with Walgreen’s acquiring prescription files.

The Pharmacy Station, which has locations in Burlington, Elkhorn and Waterford, announced the plan last week in a letter to customers posted on its Facebook page.

“This is an extremely difficult day for us. We have enjoyed being a part of the community and helping you with your healthcare needs,” the letter states. “We wish you the best and hope this causes no delays in your healthcare.”

The letter further attributes the pharmacy department closure to pharmacy benefit managers and other market forces beyond the Pharmacy Station’s control.

Former owner Steven Spitzer, who relinquished control and daily operations to son, Jared, adamantly told this newspaper the store has no plans on closing and will serve as a gift shop.

“The gift department, the jewelry department, apparel department, all of the other good things in the store are staying open,” he said. “It is not closing. The only thing that is the prescriptions.”

Spitzer, meanwhile, said the decision hinged on pressure from pharmacy benefit managers.

WisBusiness.com, which is part of WisPolitics.com, reported in August 2019 the state’s independent pharmacies are being squeezed by intermediaries called pharmacy benefit managers through lower reimbursement rates, limited drug choices and preferred pharmacies.

Spitzer said some pills have cost the Pharmacy Station more than what insurance companies have reimbursed noting pharmacy benefits managers often reimburse pharmacies differently.

“The pharmacy has merged into Walgreens and it is due to the fact that insurance companies and the pharmacy benefit managers have made prescription drug dispensing extremely challenging,” he said.

“The pills cost us more than what the insurance companies are paying back.”

Spitzer indicated many other independent pharmacies in Wisconsin have either closed or felt the economic pinch.

“You will see a lot of the independent pharmacies have closed because of what the insurance companies and what the PBMs are doing,” Spitzer added.

Matt McGowan, a Mount Horeb pharmacist, told WisBusiness.com in the 2019 report there is a need for PBM reform.

“PBMs are by far the biggest reason you see so few truly independent pharmacies anymore,” he said. “PBM reform has to happen, and it has to happen soon, or the local pharmacies so many people in Wisconsin and throughout the nation trust for their front-line health information will soon be a thing of the past.”

McGowan noted “alarmingly low reimbursements” as more and more patients have prescription insurance.

The low reimbursement rates, according got WisBusiness.com, leaves independent pharmacies with low bargaining power because of size and patient populations.

Spitzer further states Walgreen’s, which sought to acquire the Pharmacy Station’s pharmacy clientele, has a better reimbursement rate from the insurance companies.

The WisBusiness.com report states the nation’s top PBMs hold relationships with the largest pharmacy chains in the country, including CVS, Walgreens, Walmart, among others.

Karen Roby, who owns the Mount Horeb pharmacy where McGowan works, said PBMs have boosted incentives for patients who order prescriptions through the mail and use large chain pharmacies.

When patients use mail order, according to Roby, they could get reduced copays, something independent pharmacies cannot provide.

Patients who use mail order prescription delivery often garner reduced copays and place pressure on independent pharmacies, Roby stated.

Pharmacy and pharmacy technicians employed at the Pharmacy Station will have an opportunity to seek employment at Walgreen’s, according to Spitzer, who said many employees are part-time.

“They all have the opportunity, if they want it, because Walgreens wants to hire all of them,” said Spitzer.

Still operating

The Pharmacy Station plans on selling the same gift merchandise as always at all three locations in Racine and Walworth counties.

Spitzer opened the Burlington store at 300 S. Pine Street in 1982, according to the website, and later expanded to include 3 E. Geneva St., Elkhorn in 1986, followed by Waterford in 1995 at 601 N. Milwaukee Street.

Spitzer, meanwhile, continued to reiterate Pharmacy Station does not plan on closing the gift shop.

“We are still going to be selling screen printing, embroidery, but we won’t be selling prescriptions,” he said.

“Everybody is thinking the whole store is closing, that is not the case,” Spitzer added.

On Monday, an announcement on Facebook stated the store’s name will change to PS gifts and more.