NCPA releases 2024 Digest Report, names new president, bestows honors and awards
At its annual convention held from Oct. 26 to 29, The National Community Pharmacists Association released The 2024 NCPA Digest, sponsored by Cardinal Health.
The NCPA Digest, which provides an annual overview of independent community pharmacy, found that the industry represents 35% of all retail pharmacies in the United States. It continues to be true that no single pharmacy chain has more stores than all independents combined, the report said.
“The NCPA Digest serves as an annual barometer for independent pharmacy, and this year’s is showing an ominous amount of pressure in the industry,” said pharmacist NCPA CEO Douglas Hoey. “With independent pharmacies closing at a rate of more than one each day since last year, the report lays bare the ramifications of low and negative reimbursements for GLP-1s and other drugs, no longer countered by tax incentives and revenue earned from offerings related to COVID-19. Whether through other immunizations or services like long-term care, having a successful business increasingly relies on diversifying and bringing in different types of revenue. With the turbulence we’re seeing in independent and chain pharmacy alike, there’s a dire need to fix the broken pharmacy payment model. We’re continuing that fight, armed with NCPA Digest data and the goal of healthier pharmacies and patients.”
The 2024 NCPA Digest underscores the importance of pharmacy locations as healthcare destinations above and beyond providing accessible prescription medications: 91% of respondents provided flu immunizations; 91% provided non-flu immunizations; 81% offered medication therapy management; 64% performed blood pressure monitoring; 52% offered services for long-term care patients; and 47% offered compounding.
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Additional highlights from the NCPA Digest include the following:
- The estimated number of independent community pharmacies declined, falling to 18,984 locations in June of 2024 from 19,432 the year prior. This represents a loss of more than one independent pharmacy per day.
- Independent pharmacy represented a $94.9 billion market in 2023, with gross profit margin falling to 19.7%, its lowest point in the NCPA Digest report’s 10-year window. This reflects factors like low or below-cost third-party reimbursements and inflation (which showed up in wages and overhead costs).
- In 2023, the average prescription volume was 59,644 per store, a decrease from the 59,758 prescriptions dispensed in 2022.
- Eighty-three percent of prescriptions at independent pharmacies are filled with a generic drug. This number trended down, perhaps in part due to the exploding popularity of GLP-1 agonists, a category with no generics on the market.
- Government programs continued accounting for more than half of all prescriptions sold in independent community pharmacies, with 55% of total prescriptions covered by the Medicare Part D and Medicaid programs, combined.
- Ninety-three percent of independent community pharmacy respondents identified their primary pharmacy operation as retail pharmacy.
- More than 3,400 pharmacies are participating in the CPESN USA national network of clinically integrated pharmacies. It is the country’s fourth largest single-contract organization of pharmacy providers.
The NCPA Foundation presented awards and scholarships, including:
Amina Abubakar, president of Avant Institute and owner/manager of Avant Pharmacy & Wellness Center in North Carolina, received the Sharlea Leatherwood Memorial Trailblazer Award from the National Community Pharmacists Association Foundation.
The Trailblazer Award recognizes an outstanding pharmacy owner whose pharmacy practice blazes a trail for other independent pharmacy owners and future generations of independent pharmacy owners. The award is in recognition of Sharlea Leatherwood, former NCPA and NCPA Foundation president.
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Abubakar grew up in Kenya, where her interest in pharmacy and healing began. She came to the United States to pursue her dream and study pharmacy, receiving her degree in 2005 from the Philadelphia College of Pharmacy University of the Sciences. She is an internationally recognized award-winning clinical pharmacist, a certified HIV specialty pharmacist and a preceptor to University of North Carolina at Chapel Hill residents and students from several schools of pharmacy.
The NCPA Foundation also announced the recipients of this year’s NCPA Foundation scholarships. The NCPA Foundation awards scholarships each year to college students pursuing community pharmacy ownership, recognizing those with demonstrated leadership qualities, academic achievement and an interest in independent pharmacy. Scholarship awardees receive funds to be put toward tuition as well as a complimentary registration to this year’s NCPA Annual Convention and a travel stipend.
J.C. and Rheba Cobb Memorial Scholarship in Government Affairs
- Roswell Cole, the University of Georgia College of Pharmacy
Neil Pruitt Sr. Memorial Scholarship for Entrepreneurism
- Alexandria Coleman, the University of South Carolina College of Pharmacy
William B. Simmons Memorial Scholarship in Pharmacy Management
- William Elizondo, the University of Texas at Austin College of Pharmacy
Partners in Pharmacy Scholarship
- Sara Kate Horn, Auburn University Harrison College of Pharmacy
- Quinn Mosgrove, the University of Texas at Austin College of Pharmacy
- Haley Mullinax, Mercer University College of Pharmacy
- Faith Oliver, St. Louis College of Pharmacy, University of Health Sciences and Pharmacy
- Andrea Tucker, Auburn University Harrison College of Pharmacy
Partners in Pharmacy Scholarship, sponsored by Salvatori-Scott, in memory of Steve Salvatori
- Jarred Jones, Samford University McWhorter School of Pharmacy
- Kennedy Page, Auburn University Harrison College of Pharmacy
Presidential Scholarship, sponsored by McKesson RxOwnership
- Bailey Deas, Auburn University Harrison College of Pharmacy
- Jacqueline Estes, the University of Missouri-Kansas City School of Pharmacy
- Ashleigh Ewens, Mercer University College of Pharmacy
- Corey McLemore, Union University College of Pharmacy
- Hailey Murphy, Regis University School of Pharmacy
- Bruno Onwukwe, the University of Texas at Austin College of Pharmacy
- Haley Shaffer, the University of Arizona R. Ken Coit College of Pharmacy
- Sam Smith, Mercer University College of Pharmacy
- Akshaya Sudhakar, the University of Pittsburgh School of Pharmacy
NCPA also announced that a team of student pharmacists from the University of Texas at Austin was named the winner of the 21st annual Good Neighbor Pharmacy NCPA Pruitt-Schutte Student Business Plan Competition. A team from the University of South Carolina was the runner-up, and a team representing the University of North Carolina at Chapel Hill finished as the second runner-up.
“Congratulations to University of Texas at Austin for winning this year’s competition, and to all of this year’s finalists and participants for their hard work,” said NCPA president Lea Wolsoncroft. “As we’ve seen in recent years, owning a business means rolling with the punches, whether that’s confronting a global pandemic, industry pressures, staffing challenges, or any other obstacle. Having a solid business plan in place helps you stay focused on caring for patients and ensuring the pharmacy is heading in the right direction, regardless of turmoil around you. There were many great plans this year, but the University of Texas at Austin’s efforts and presentation secured the win!”
The business plan competition is the first national competition of its kind in the pharmacy profession. The contest is named in honor of two great champions of independent community pharmacy, the late Neil Pruitt, Sr. and the late H. Joseph Schutte. Its goal is to motivate student pharmacists to create a business model for buying an existing independent community pharmacy or developing a new one. Through this competition, NCPA is helping to prepare tomorrow’s pharmacy entrepreneurs. The competition is supported by Good Neighbor Pharmacy, Pharmacists Mutual Insurance Company and the NCPA Foundation.
The winning team from the University of Texas at Austin is comprised of team captain Quinn Mosgrove and team members William Elizondo, Jennifer Lines and Bruno Onwukwe. The team adviser is Terry Weaver, and the dean is Samuel Poloyac. Their chapter received $3,000, and an additional $3,000 was contributed to the school in the dean’s name to promote independent community pharmacy at the college of pharmacy. The team members, team advisers and dean also will receive complimentary registration, travel and lodging to NCPA’s 2025 Multiple Locations Conference this February in Florida.
NCPA's House of Delegates installed Jeff Harrel of Ilwaco, Wash., as 2024-2025 president.
Harrell, who has been an NCPA member since 2002, is a graduate of Washington State University. With partners in Washington state, Oregon and Idaho, he co-owns more than 35 pharmacies as CEO of Cascadia Pharmacy Group, an alliance of independent community pharmacies. He is on the board of directors of American Associated Pharmacies and AlignRx, and is a leading authority on technology and innovations in pharmacy practice. Harrell received the Bowl of Hygeia award in 2023.
“The landscape of pharmacy has changed,” Harrell said in his inaugural speech. “Cash flow in the last year was as tough as it has ever been. The casualties have been countless, and the closures and consolidation of pharmacies have been catastrophic in some areas, leaving many pharmacy deserts. However, the pharmacy economist in me is looking forward to our future, and I could not be more excited for our profession.”
His mission as NCPA president will be to help change the pharmacy payment model and ensure independent pharmacies are recognized for their work, Harrell said. “Independent pharmacy is a premium product. We deserve to be paid like that premium product.”