NEW ALBANY, Ind. (WDRB) -- Westmoreland Pharmacy, based in New Albany, is making big changes after years of operating multiple pharmacy locations in southern Indiana.

Anthony Westmoreland, founder and president, said Thursday he was forced to close two locations and change his business model at another because he was taking losses on prescriptions. 

According to a Facebook post from Westmoreland Pharmacy + Compounding, effective Feb. 6, Westmoreland will become a compounding-only pharmacy, keeping the doors open at its New Albany location. However, the post explains that its Jeffersonville and Sellersburg stores must permanently close. The last day of business for Sellersburg was Jan. 30, and the last day of business for Jeffersonville was Jan. 31.

The last day for traditional prescriptions to be picked up at the New Albany store will be Monday, Feb. 6. After that, it will be compounded medications only, which Westmoreland describes as "anything that's not commercially available."

"The reason that drove that is the fact that insurance companies are reimbursing below our acquisition costs," Westmoreland said. "I just did a report: The last 90 days, we have 1,600 prescriptions at just (the New Albany store) alone, where we actually took a loss on the prescription. Sixteen-hundred over 90 days. And that's just this store. That amounted to about $14,000 in loss. So that's just not sustainable, or course, for any business."

Westmoreland said he has been in the pharmacy business for decades, including nearly 20 years at the location on State Street in New Albany.

Although it was a business decision, Westmoreland said he feels "really bad for the patients, because they really enjoy coming here, and I really enjoy seeing them. So there's a lot of relationships that are going to be disrupted by that."

With preparing to only fill compounded medications, that means traditional, retail prescriptions for things like blood pressure, cholesterol or diabetes medications will be sent to nearby Kroger locations.

"We think that that's probably the best partner for our customers," she said. "At the end of the day, someone can choose where they want to go. They have the choice to pick their pharmacy."

Ronna Hauser, senior vice president of policy and pharmacy affairs for the National Community Pharmacists Association said Westmoreland's situation is not unique.

"Unfortunately, we're seeing it across the country," Hauser said Thursday. "Pharmacies are having to make very hard decisions. They do not want to have to stop taking care of their patients, but, in some instances, again, they're forced to.

"Community pharmacies are in essence forced to contract with pharmacy benefit managers for patients to be able to use their insurance at a pharmacy, and the pharmacy benefit managers are a highly concentrated market."

Hauser said big box pharmacies across the country are also feeling the impacts.

"It is an unfortunate situation that it's starting to impact the chains," she said. 

"It is sad to stop a part of our business," Westmoreland said. "But we feel like we are re-tooling and setting the stage for growth in another area."

Westmoreland Pharmacy said the New Albany location was recently renovated to triple the compounding laboratories and clean room areas. Westmoreland's vision is to "grow compounding and expand our capacity."

Westmoreland said most staff members are staying with the company. 

"There are a few people that are not continuing," he said. "We just don't have enough positions for everyone. But over 80% are being retained. A few people are choosing to go and do other things."

The changes at New Albany location take effect next week.

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