Northeast Ohio Health Systems Expand Pharmacy Services

Interior of a community pharmacy with staff helping customers

News Summary

As retail pharmacy closures increase in Northeast Ohio, local health systems are investing in pharmacy services to ensure community access to medications. The area has seen a net loss of hundreds of pharmacies, creating significant pharmacy deserts. In response, MetroHealth and Cleveland Clinic are opening new locations and expanding their networks to meet community needs. This trend highlights the challenges faced by major chains and the need for local solutions to enhance healthcare access.

Cleveland, Ohio – In response to a wave of retail pharmacy closures, health systems in Northeast Ohio are ramping up investments in their pharmacy services to enhance community access to medications. In the last year, Ohio saw the closure of 219 pharmacy locations, while only 51 opened, yielding a net decrease of 168 pharmacies. This trend has led to almost 1,800 operational pharmacies across the state.

The significant reduction in pharmacies has created more “pharmacy deserts,” which are areas where individuals must travel more than one mile in urban settings and over ten miles in rural regions to find the nearest pharmacy. This closure trend reflects a broader national issue, as approximately 30% of U.S. drugstores that operated between 2010 and 2020 were closed by 2021.

Despite the decline in retail pharmacies, the global pharmacy market is projected to experience substantial growth, anticipated to rise from nearly $1.4 trillion in 2024 to almost $2.1 trillion by 2030. In response to local market changes, major health systems in Northeast Ohio are seizing the opportunity to fill gaps left by competitors exiting the market.

Health System Actions

MetroHealth recently opened a new pharmacy at the Brooklyn Health Center in February 2024, underlining its commitment to retail and home delivery pharmacy services. This initiative is part of a larger strategy to ensure patients have access to medications close to home.

Cleveland Clinic has also expanded its pharmacy network, opening its 23rd retail pharmacy in September 2023 at the South Point Medical Office. The health system is capitalizing on the decreased competition in the region, with approximately 350 caregivers currently employed across its pharmacy network. In 2024, Cleveland Clinic filled nearly 2.4 million prescriptions, with projections indicating an increase to between 2.7 and 2.8 million prescriptions by 2025. Plans are underway for a 24th pharmacy to open within a new $1.1 billion neurological institute, expected to be completed in late 2026.

Similarly, MetroHealth is emphasizing initial prescriptions captured within its clinics, with their recently opened pharmacy being established with a $500,000 investment. MetroHealth services currently include 430 employees across their pharmacy network, which fulfills over 2.3 million prescriptions annually.

Open Pharmacy Networks

University Hospitals (UH) operates 15 retail pharmacies and maintains an “open pharmacy network,” allowing all patients to access their services, regardless of their affiliation with the health system. This inclusive approach has significantly contributed to UH’s growth, with the specialty pharmacy division accounting for 42% of progress in their Home Care sector, also reporting year-over-year revenue increases.

Neighborhood Family Practice (NFP) is also taking proactive measures by planning to add two new pharmacy locations. Pharmacy services currently account for 18% of NFP’s overall revenue, illustrating the importance of retail pharmacies in the continuum of patient care.

Regulatory Responses and Community Needs

The closures have prompted the Ohio Board of Pharmacy to launch a Pharmacy Tracking Dashboard, which provides insight into the trends of pharmacy openings and closings. Access to pharmacies remains critical for managing prescriptions and chronic health conditions, particularly for populations that are often underserved.

The ongoing financial struggles faced by major chains like Rite Aid, CVS, and Walgreens have further contributed to the decrease in retail pharmacies. Rite Aid has filed for bankruptcy for the second time, reflecting widespread challenges that many pharmacy chains currently face, resulting in further store closures.

As these health systems invest in community pharmacies, they aim to address growing healthcare access issues that have been exacerbated by recent pharmacy closures. By strategically enhancing their pharmacy services, they hope to improve health outcomes for residents across Northeast Ohio and beyond.

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Additional Resources

STAFF HERE CLEVELAND WRITER
Author: STAFF HERE CLEVELAND WRITER

The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton

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