As Walgreens shutters more locations this month, the city is exploring the idea of a pharmacy co-op model to prevent “pharmacy deserts" in low-income areas, via bulk purchasing and independent pharmacy partnerships.

According to Mission Local, Supervisor Jackie Fielder has tasked the Budget and Legislative Analyst with investigating how the city could support a pharmacy co-op network, allowing independent and city-run pharmacies to work together, potentially bypassing pharmacy benefit managers (PBMs) who control drug pricing and reimbursements.

PBMs, which oversee 95% of U.S. prescriptions, have been criticized for squeezing independent pharmacies with opaque pricing and low reimbursements—issues that a Federal Trade Commission report confirmed are driving closures nationwide.

The analyst's investigation will also assess the feasibility of bulk medication purchasing by the Department of Public Health, which could help struggling local pharmacies avoid months-long waits for reimbursement from insurers. While city-run pharmacy co-ops are rare, KQED notes that the idea echoes Mark Cuban’s Cost Plus drug venture, which has apparently received mixed reviews.

With input from local pharmacy owners, the upcoming report will outline potential funding sources, operational needs, and legal hurdles for a co-op model. The results are expected in five to six months.

FYI: The 1524 Polk Street Walgreens location didn't end up closing!

Image: Joe's Pharmacy; Eskil O./Yelp

Previously: Walgreens Closing 12 SF Stores In Late February, Here’s a Map Showing Which Ones are Closing