Three Traverse City pharmacies have closed their doors, per an announcement this week from HomeTown Pharmacy. The affected locations include Sixth Street Drugs, at 1020 Sixth Street, as well as the pharmacies at Copper Ridge and Munson’s Foster Family Community Health Center. Two of those pharmacies were just acquired from Munson Healthcare last year.

“We recognize the hardship these closures create for patients and healthcare providers, and we are committed to minimizing disruptions in care,” HomeTown Pharmacy said in a press release, which announced the three Traverse City closures alongside a fourth in Muskegon. “We also recognize the impact these closures have on our employees. To support those affected, eligible employees were provided severance packages and were given the opportunity to apply for positions with the new pharmacy operators. Where possible, employees were also offered available positions within our organization.”

HomeTown Pharmacy blamed the closures on “the continuing financial strain caused by pharmacy benefit manager (PBM) reimbursement practices.”

“For years, pharmacies across the country have been asked to dispense medications at reimbursement rates that often fail to cover the actual cost of acquiring and providing those medications,” the press release noted. “At the same time, pharmacies face escalating operating expenses, workforce costs, regulatory requirements, and administrative burdens. Independent and regional pharmacies are increasingly being forced to compete in a marketplace where PBMs wield enormous influence over drug pricing, reimbursement, network participation, and patient access. This imbalance has made it extraordinarily difficult for community pharmacies to remain financially viable, particularly in markets where large national chains and mail order can leverage scale and resources unavailable to smaller operators.”

The company said the trend is leading to an “alarming rate” of pharmacy closures across the United States, “reducing patient choice and limiting access to essential healthcare services.”

Last February, Munson Healthcare announced that HomeTown Pharmacy would be taking over ownership of five of its pharmacy locations in northern Michigan. Those included Sixth Street Drugs and the Foster Family location, as well as the Munson Medical Center Discharge Pharmacy at Munson Medical Center. Pharmacies in Suttons Bay and Empire were also included in the deal.

“Our core strength as a health system is on the inpatient side of pharmacy but we entered the retail pharmacy space to help stabilize these locations and ensure continued access to our community – this is truly Hometown’s expertise,” Kathy LaRaia, Munson’s VP of oncology and professional services said at the time. “HomeTown’s reputation as a Michigan-based, trusted local pharmacy, committed to the people they serve will make this a successful and seamless transition.”

Despite the closures, HomeTown Pharmacy’s press release insists the company’s partnership with Munson remains “strong,” and notes it will “continue to collaborate with Munson Medical Center to operate the ambulatory pharmacy within the hospital, ensuring patients, caregivers, and the health system continue to have access to pharmacy services that support their care.”