Published Oct 26, 2023 by Annie Berman In Valdez, frequent staffing challenges at the city’s sole pharmacy has led to a backlog of people waiting on prescription refills, according to Tom Wadsworth, dean of the University of Alaska Anchorage’s school of pharmacy.
Alaska’s pharmacist shortage worsened during the COVID-19 pandemic, when pharmacies faced an increased workload and difficult working conditions, causing many pharmacists to retire or leave the field early. But many of the conditions that led to the closures began years before COVID-19, pharmacists reached for this story said.
Nelson and Wadsworth attribute the problem to a relatively new and complicated reimbursement model involving pharmacy benefit managers, companies that act as middlemen between insurance companies and pharmacies to set prescription reimbursement prices, and often pocket large shares of the profits.
Wadsworth said staffing shortages now appear to be particularly noticeable at chain pharmacies, where working conditions are often more difficult, and pay is typically lower than at hospitals, clinics or tribal health organizations.
“Pharmacists don’t like those (retail) jobs as much because the working conditions are not ideal,” he said.
Nelson linked the new reimbursement model, and the resulting small profit margins for the pharmacies, to consistently low pay for pharmacy technicians and decisions by management to cut hours and reduce the number of staff at each store.
“One of the most expensive parts of running a pharmacy is staffing,” he said. “So they’ve cut their staffing in response to the low reimbursement rate.”
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