Source page: McKinsey & Company
March 31, 2026
Retail | Healthcare
Retail pharmacies are under mounting pressure that has led to bankruptcies and store closures.
Retail pharmacies—long a critical healthcare resource in the United States—are under mounting pressure that has led to bankruptcies and store closures. Since 2017, roughly 8,600 retail pharmacy locations have closed (13.5 percent), spanning chains, independents, and other types. One reason for that strain is that legacy drug-pricing models have failed to keep pace with rising costs and shifting drug mixes. However, a shift is is underway, note McKinsey’s Alec McLeod, Alok Ladsariya, BJ Tevelow, and Isabella Pesavento: Cost-based reimbursement models—designed to align payment more closely with actual drug and service costs—are gaining traction as an alternative.
To read the article, see “The revival of pharmacy: The rise of cost-based reimbursement,” January 29, 2026.
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