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Pharmacy deserts are appearing across U.S. as Rite Aid, Walgreens, CVS drug store closures spread

"As long as the big three PBMs go unchecked, more pharmacy deserts will appear," Rochol said.

In June, the FTC issued a scathing report about PBMs and the "squeezing" of Main Street pharmacies caused by decades of mergers and acquisitions. According to the FTC, the three largest PBMs control nearly 80% of all prescriptions filled in the United States, negotiating the terms and conditions for access to prescription drugs for hundreds of millions of Americans. The report blames falling reimbursement rates from PBMs for many of the financial troubles of smaller pharmacies.

Miranda Rochol, senior vice president of provider solutions at healthcare technology company Prescryptive Health — who worked her way up in the business, starting as a pharmacy technician before moving to Walgreens health technology team — says the PBMs are largely to blame for the current problems in the industry. "PBMs can steer patients into their own pharmacies, drive profit to their pharmacies, and under-pay community pharmacies," she said.

At a time when the federal government is suing the primary drug market's middlemen , the pharmacy benefit managers — with the Federal Trade Commission alleging inflated prices on drugs like insulin — some are pointing the finger at the PBMs for the pharmacy deserts.

New Lebanon, though, is hardly alone in its struggle to hold on to a pharmacy. Experts say the retail pharmacy model has been squeezed by complicated and sometimes lower reimbursement rates for medication while competition for sales of candy and paper towels, items that used to pad profits, has grown more fierce.

"Nearly all our stores in Ohio will be closing by the end of September as part of our recent Chapter 11 process to create a stronger, healthier company," the spokesman said, adding that there would only be four Rite Aids remaining in Ohio. There were over 140 before the latest round of closures.

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