Latest news with #JohnHoeschen
Yahoo
17 hours ago
- Business
- Yahoo
Independent pharmacies welcome legislation targeting drug middlemen
The Brief The legislation would create a single state-run pharmacy benefit manager to negotiate drug prices for Medicaid plans. Independent pharmacies often lose money on prescriptions because drug middlemen do not always reimburse them. The changes would take effect in 2027. (FOX 9) - Independent pharmacies applauded legislation that is awaiting the governor's signature, saying it would help them stay afloat as many of them struggle to survive. What we know Legislation awaiting Governor Tim Walz' signature would create a state-run pharmacy benefit manager, which would negotiate drug prices for Medicaid plans. The goal is to simplify the process, which now involves multiple pharmacy benefit managers, and increase transparency. The legislation would also require the state-run group to report prices, rebates and discounts to a state commissioner. Under the legislation, a single pharmacy benefit manager overseen by the state would be required to pay independent pharmacies for each prescription they fill. That requirement would take effect in 2027. In the meantime, the state would pay pharmacies a flat fee of $4.50 per prescription to keep them afloat. The backstory Pharmacy benefit managers, or PBMs, negotiate drug prices for insurance plans. Many of them are owned by insurance companies. Within the last year, the Federal Trade Commission has investigated pharmacy benefit managers. It released two scathing reports, accusing them of unfair business practices. What they're saying "You're paying the pharmacies better, pharmacies stay open, patients have choice where they get their care..." said pharmacist John Hoeschen, owner of St. Paul Corner Drug. "If you're losing $35, $40, $50, $55, $60, $70 dollars a prescription, what else can you sell to make that up? You can't. That's an unsustainable model. That is not a recipe for longevity in this business." Dig deeper Mark Cuban, the billionaire investor who has criticized pharmacy benefit managers and who started his own company to sell prescriptions at affordable rates, said the legislation in Minnesota does not do enough. In a post on X on Sunday, Cuban said "all it is doing is saying you want more details but keep doing business the way your PBMs always have.... They will just move things around to different places." What's next The legislation is awaiting the governor's signature.
Yahoo
4 days ago
- Business
- Yahoo
St. Paul Corner Drug says farewell to its vintage soda fountain, warns of 'sobering trend' for pharmacies
St. Paul Corner Drug says farewell to its vintage soda fountain, warns of 'sobering trend' for pharmacies originally appeared on Bring Me The News. St. Paul Corner Drug, an independent pharmacy in St. Paul, is bidding farewell to its old-fashioned soda machine. The pharmacy at 240 Snelling Ave. S is calling Saturday's event a "retirement party" for the soda fountain that's happening because the store is reconfiguring itself "to better serve patients in today's evolving healthcare environment." The event celebrates a kitschy relic of a different era, but St. Paul Corner Drug says it underscores a "sobering trend" for independent pharmacies in the U.S.'s tumultuous healthcare system. "Minnesota's independent pharmacies are being squeezed by rising costs, unfair pharmacy benefit manager (PBM) practices, and shrinking reimbursements, forcing many to make difficult decisions just to stay open," the store says in a statement. Just last month, West Seventh Pharmacy in St. Paul announced it will close in June after 110 years in business, in what is starting to feel like a familiar story. "Independent pharmacies across Minnesota are being forced to adapt, downsize, or close their doors altogether because of an unsustainable business environment," says John Hoeschen, pharmacist and owner of St. Paul Corner Drug. "This soda fountain farewell is bittersweet — it represents the tough choices many of us are having to make to keep our pharmacies focused on patient care, while fighting for the ability to just stay in business." The farewell party is taking place on Saturday, June 7 from 11 a.m. to 3 p.m. with free ice cream and a little community. This story was originally reported by Bring Me The News on Jun 7, 2025, where it first appeared.
Yahoo
5 days ago
- Business
- Yahoo
St. Paul Corner Drug closing historic soda fountain
St. Paul Corner Drug will be hosting a 'retirement party' for its old-fashioned soda fountain from 11 a.m. to 3 p.m. Saturday. The fountain's final ice cream scoops will be served at the event. Owner John Hoeschen said the fountain is closing due to financial pressure in the pharmacy industry and a lack of physical space in the building at the corner of Snelling and St. Clair avenues. The fountain has been out of service since October 2020, when the independent pharmacy needed room to provide vaccinations during the COVID-19 pandemic. After removing the fountain, the drug store will rearrange to maximize its 1,200-square-foot space for vaccination services. 'It (the fountain) wasn't a profit center, it was more of a community builder,' Hoeschen said. 'We had to ask, 'If we reopen the fountain, can we generate enough revenue to justify its space being there? And the math just didn't add up.' Hoeschen said the soda fountain's closure represents the tough decisions community pharmacies must make to stay in business amid rising costs and low reimbursement rates. According to the Minnesota Pharmacists Association, 61% of independently owned and 39% of chain pharmacies have closed since 2013. In St. Paul, the West Seventh Pharmacy will be closing June 30 as the owners retire without finding a buyer for their business. At the farewell party, community members will share memories and stories of the soda fountain, which has been a community gathering place since the pharmacy opened in 1922. Hoeschen said his neighbors met at the fountain, got married and raised their children two blocks away from the pharmacy. 'It's touched million of lives. It was a great thing, I loved it,' Hoeschen said. 'But unfortunately, the times are changing, and we have to retool and focus on trying to keep this pharmacy open.' Officers in Minneapolis raid wore distinct patches. One was authorized, another wasn't, feds say. Longtime Grand Avenue fabric shop Treadle Yard Goods has closed amid owner's cancer battle 'We feel relief': Derrick Thompson found guilty in Minneapolis crash that killed five young women Minneapolis man sentenced for stabbing, hanging St. Paul woman's dog after argument Snelling and St. Clair intersection fully reopens after construction
Yahoo
5 days ago
- Business
- Yahoo
St. Paul Corner Drug closing historic soda fountain
St. Paul Corner Drug will be hosting a 'retirement party' for its old-fashioned soda fountain from 11 a.m. to 3 p.m. Saturday. The fountain's final ice cream scoops will be served at the event. Owner John Hoeschen said the fountain is closing due to financial pressure in the pharmacy industry and a lack of physical space in the building at the corner of Snelling and St. Clair avenues. The fountain has been out of service since October 2020, when the independent pharmacy needed room to provide vaccinations during the COVID-19 pandemic. After removing the fountain, the drug store will rearrange to maximize its 1,200-square-foot space for vaccination services. 'It (the fountain) wasn't a profit center, it was more of a community builder,' Hoeschen said. 'We had to ask, 'If we reopen the fountain, can we generate enough revenue to justify its space being there? And the math just didn't add up.' Hoeschen said the soda fountain's closure represents the tough decisions community pharmacies must make to stay in business amid rising costs and low reimbursement rates. According to the Minnesota Pharmacists Association, 61% of independently owned and 39% of chain pharmacies have closed since 2013. In St. Paul, the West Seventh Pharmacy will be closing June 30 as the owners retire without finding a buyer for their business. At the farewell party, community members will share memories and stories of the soda fountain, which has been a community gathering place since the pharmacy opened in 1922. Hoeschen said his neighbors met at the fountain, got married and raised their children two blocks away from the pharmacy. 'It's touched million of lives. It was a great thing, I loved it,' Hoeschen said. 'But unfortunately, the times are changing, and we have to retool and focus on trying to keep this pharmacy open.' Officers in Minneapolis raid wore distinct patches. One was authorized, another wasn't, feds say. Longtime Grand Avenue fabric shop Treadle Yard Goods has closed amid owner's cancer battle 'We feel relief': Derrick Thompson found guilty in Minneapolis crash that killed five young women Minneapolis man sentenced for stabbing, hanging St. Paul woman's dog after argument Snelling and St. Clair intersection fully reopens after construction
