Sunday, July 30, 2023
Alexander Papp, MD
After more than 3 decades of serving the local community, Point Loma Shelter Island Drug, and its sister store up on the top of the hill, Point Loma Cabrillo Drug, closed their doors.
The pharmacies, owned and ran by Michael Saad, provided personal and friendly service. It was very different that what customers get at the large chain pharmacies.
Alas, during the last 5 – 8 years, the pharmacy was plagued by a number of steadily worsening problems.
One source of the problems was crime: stealing, breaking and entering, an on one occasion, armed robbery, required resources to be spent on protection.
Another source was the greed of the insurance companies, specifically the so-called Pharmacy Benefit Managers (PBMs), that employ the poignantly named practice of “clawback”.
A clawback occurs when a PBM retroactively reduces the amount it pays to a pharmacy for a prescription medication that has already been dispensed to a patient. This reduction can happen days or even months after the prescription has been filled, leaving the independent pharmacy financially responsible for the difference between the initial reimbursement and the clawback amount.
Clawbacks are as painful as the name implies.
When a PBM claws back funds, it effectively takes back money that the pharmacy had initially received as reimbursement for the medication. Independent pharmacies often operate on slim profit margins, so unexpected clawbacks can disrupt their cash flow, making it challenging to cover operating costs, purchase inventory, and pay staff.
After years of working 12 hours days, trying to keep the business afloat, for Michael it was time to move on and slow down. He sold the stores to one of the smaller chain pharmacies.
The longtime patrons cherished a pharmacist like Michael who knew them by name rather than date of birth. He and his friendly staff will be sorely missed.
