Pharmacy is more than dispensing medicine. The front and public face of healthcare, the sector faces several challenges in the coming years.
When you or your child becomes ill, you will often find that the pharmacist is the first port of call. They often give advice on common ailments and can recommend over-the-counter solutions. This makes their job extremely important, becoming a bridge between the patient and further medical professionals. Pharmacy is changing in the digital realm, blending this timeless approach with modern methods. While it faces several challenges, with them come opportunities.
Staff Shortages
Pharmacists are in short supply across the US. Around 13,323 new pharmacists graduate and register with the American Association of Colleges of Pharmacy per year. What is most worrying is that for many years, applications through the Pharmacy College application service have been diminishing, showing that fewer pharmacists are going to be available in the near future.
This is not just an inconvenience, but a serious healthcare crisis resulting in a lack of frontline workers. Around 60,882 job applications were filed for pharmacists in 2023. Most were for retail pharmacists, followed by clinical and hospital pharmacists.
Understandably, there is no shortcut to being a pharmacist. It requires a lot of knowledge and four years of hard study. However, there are ways to make this easier, mainly through pharmacy school online accredited courses. The best ones will divide the four years into increasing levels of independence and responsibility. They will mix campus visits with real work placements and study in one go, making the process more manageable.
Changes in Technology
Pharmacies tend to follow a rigid structure that has not changed for some time. They have operated like shops, where people come up to a counter, place an order, and the pharmacist responds. However, this is already changing, and one of the biggest challenges will be responding to these technological changes, both in terms of business processes and investment.
Take retail pharmacies, for instance. They could benefit from technologies like 3D printing, for example, making small items that assist health and wellbeing, like hearing devices. Many have also begun to integrate self-service models, which may be able to provide same-day delivery and other retail requests.
Lastly, AI and the information provided by a patient may be able to spot issues before they occur. They may be able to see if a customer is at risk of certain ailments by cross-referencing with medical records. This would change pharmacy from a station that cures ailments to one that begins to prevent them from occurring in the first place.
This has already been seen in some Walgreens retail pharmacies. Their recently expanded stores are served by micro fulfilment centres, which fill prescriptions for those who need medication for diabetes, high blood pressure, or other conditions. These robots are now doing around 16 million prescriptions each month, mainly at underperforming stores. By doing so, the pharmacy can increase profits, reduce the workload on staff, and keep the much-needed chemist open.
Rising Operational Costs
Rising operational costs are another major factor challenging pharmacies. Rent, utilities, and wages are up, as is inflation. The impact of tariffs and the weakening dollar is not helping US pharmacies either. There are also now online options, which are reducing footfall in most physical locations.
The problem is vast, so solutions are not a one-size-fits-all approach. Pharmacies must implement cost control measures, constantly reviewing contracts and suppliers for the best deals. Robust inventory management at different locations can prevent waste, and transfer helps increase profit.
Another risk is investing in energy-efficient equipment. This may bring down bills and costs. However, even this itself requires investment, which many independent pharmacies may not have.
Supply Chain Disruptions
The US has undergone a policy of reducing its reliance on foreign imports. This has resulted in a 25% duty on China and a 20% duty on India. Most of these have been on APIs, the active component of a drug that treats or prevents a specific symptom or disease. The uncertain nature of the tariffs, in the short term, has disrupted supply chains.
Reports have noted that this has increased costs by 12%-20%. These have been widely used drug components such as amoxicillin, acetaminophen, and metformin. These generic drugs make up around 90% of prescriptions in the United States. This could increase costs across the sector by $451 billion over the next few years.
Add to this the increased costs of ocean freight. This year, containers to the West Coast have gone from $3,500 to $6,500. This does not even include specialist containers that require temperature control and humidity levels, which will be higher.
Thus, the sector faces a lot of tough challenges. From finding frontline staff, training them, to overhauling pharmacies for the modern era. On top of this, costs are rising, both for drugs and running costs. The next few years will be challenging, but it will be an exciting time to work in the industry.
