When an Independent Pharmacy Closes, a Community Loses More Than a Business

When an independent pharmacy closes, a community doesn’t just lose a business—it loses healthcare access.

Across the country, independent pharmacies are facing unprecedented challenges, and rural communities are feeling the impact. Vermont is a clear example of the growing pharmacy access crisis. A national study published in the Journal of the American Medical Association found that significant portions of Vermont lack convenient access to a pharmacy, creating barriers for patients who rely on local pharmacists for medications, health advice, and essential services.

Over the past 20 years, Vermont has lost approximately one-third of its pharmacies, leaving only 126 pharmacies statewide as of early 2025. Recent closures indicate that number continues to decline.

The impact was felt immediately when three independently owned Smilin’ Steve pharmacies abruptly closed, with a fourth expected to follow, according to company director Jeff Hochberg. These closures represent more than the loss of storefronts—they represent the loss of trusted healthcare providers who know their patients, their communities, and their needs.

One of the major challenges facing independent pharmacies is the current prescription pricing system, which is heavily influenced by pharmacy benefit managers (PBMs). PBMs negotiate pricing between pharmacies, drug manufacturers, and insurance companies, but many independent pharmacy owners argue that the current system places significant financial pressure on community pharmacies.

In response, Vermont enacted legislation in 2024 requiring PBMs to register with the state, increasing transparency and giving the Department of Financial Regulation authority to oversee their practices. The law requires PBMs to disclose retained funds and provides a process for pharmacies to file complaints.

While these reforms represent progress, many pharmacy owners believe additional action is needed. Kyle Maxwell, owner of three Vermont pharmacies in Burlington, Stowe, and Northfield, noted that while Vermont’s legislation is a positive step, meaningful relief will likely require continued action at the federal level.

The challenges facing independent pharmacies are not just a business issue—they are a public health issue.

Independent pharmacies serve as healthcare anchors in their communities. They provide personalized medication counseling, immunizations, chronic disease support, and a level of accessibility that large chains often cannot replicate.

Protecting independent pharmacies means protecting patient access. The future of community healthcare depends on ensuring these pharmacies have the resources, purchasing power, and support they need to remain strong.

At United Pharmacy Network, we believe independent pharmacies are essential to the communities they serve. By helping pharmacies compete, reduce costs, and access valuable resources, we can work together to preserve the future of community pharmacy.