Latest news with #PeterHall
Yahoo
5 hours ago
- Business
- Yahoo
Community pharmacists in Pa. say they're struggling to absorb Rite Aid's customers
A Rite Aid pharmacy in West Chester, Pa. (Capital-Star photo by Peter Hall) Ron McDermott is a part-owner of six pharmacies in western Pennsylvania and any outsider might think his business has never seemed better. Since the Philadelphia-based retail pharmacy chain Rite Aid declared bankruptcy last month and announced plans to close hundreds of stores across the state, McDermott has seen a flood of new customers looking to transfer their prescriptions. 'A lot of people are walking into our pharmacies. A lot of people are calling,' McDermott said. 'You'd think that's great news, but there are problems.' For most businesses, a major competitor shutting their doors would be welcome. But for pharmacists, taking on new clients can actually pose a risk to their bottom line. McDermott's pharmacies have had to turn away some new customers whose medications would cost them more to stock and package than they could make selling them. 'It's the complete opposite of what we want to do as a caring, community-based pharmacy,' he said. 'We have to be careful when we take on new patients. That's a sad situation in health care. It's not the way it should be.' McDermott blames middlemen in the pharmaceutical supply chain called pharmacy benefit managers, or PBMs. They're companies that contract with insurance plans to handle their prescription services, and are responsible for reimbursing pharmacists for drugs that they cover. But McDermott and other pharmacists say those reimbursements have been getting smaller for years, to the point where pharmacies are actually losing money dispensing certain drugs. Prescription for trouble: Pennsylvania pharmacists say PBMs are driving pharmacy closures Along with handling administrative work for insurers and reimbursing pharmacies, they also create insurance plans' formularies — their list of approved or preferred drugs. In that role, they negotiate with pharmaceutical manufacturers, often receiving kickbacks in exchange for placing their products on a plan's formulary — their list of approved or preferred drugs. On the other end, they negotiate with pharmacies to determine how much they'll reimburse them when they dispense drugs to insured patients. The companies' power comes largely from their size. The three biggest PBMs, Caremark, Express Scripts and OptumRx, are part of healthcare conglomerates that rank among the biggest companies in the country, and have hands in the insurance and pharmacy businesses too. CVS Health, for example, owns CVS, the largest chain pharmacy in America, CVS Caremark, the largest PBM, and Aetna, one of the largest insurance companies. It's the sixth largest company in the U.S. by revenue. The 'big three,' as they're known in the industry, are responsible for processing about 80% of all prescriptions in America. That means pharmacists who refuse to accept the reimbursements that they offer are likely to lose customers whose insurance plans rely on them. Many of those customers only use generic drugs, which cost pennies or fractions of pennies to stock. Generally, generics make up a majority of a pharmacy's drug sales, and can be sold at a profit. But a disproportionate share of their revenue comes from the sale of name brand drugs, which can cost thousands of dollars per bottle and is often where reimbursements fall short of costs. Rob Frankil, the executive director of the Philadelphia Association of Retail Druggists, a trade group for pharmacists, said that McDermott is not alone. 'I'm already having a lot of my members tell me they're not willing to take in Rite Aid patients, because they're already losing money on prescriptions they fill,' he told the Capital-Star. 'It all stems from the same thing: the reimbursement is bad when you fill prescriptions.' Greg Lopes, a spokesperson for the Pharmaceutical Care Management Association, a national trade group whose members include CVS, Express Scripts and OptumRx, rejected the notion that PBMs contribute to pharmacy closures. 'PBMs put patients first by working to lower prescription drug costs,' Lopes said in a statement. 'It makes no sense to blame PBMs for pharmacy closures in Pennsylvania. Independent pharmacies often point the finger at PBMs, instead of acknowledging that there are many factors that influence closures, including customer preferences for online options and changing demographics. ' Lopes added that PBMs 'are supporting community pharmacies in Pennsylvania through programs that increase reimbursement and advocating to allow them to expand the additional clinical services they can offer.' 'Pharmacies as gold' Lucas Berenbrok, a researcher at the University of Pittsburgh's School of Pharmacy, has been tracking pharmacy closures around the country. Recently, he was part of a study that found around 200 have closed in Pennsylvania alone between January 2024 and March 2025. Berenbrok's research did not dive into the reasons for the closures, but, anecdotally, he said that it often comes back to unsustainable business models and low reimbursement rates. 'This is a big deal because one of the things that pharmacy has prided itself on for a long time is how accessible we are,' he said. 'That's why I got started in this research.' Lately, Berenbrok's work has been focused on identifying what he and his colleagues are calling 'keystone pharmacies.' These are businesses that, if they closed, would create pharmacy deserts in the communities they serve. Berenbrok said his team identified over 200 keystone pharmacies in Pennsylvania, though the list has not yet been made public. 'It's more of a preventative approach to say, 'Hey, let's look at these pharmacies as gold and try to do things to help them stay in business,'' he said. The recent spate of closures has not just affected local, independent pharmacies, but large chains as well. In 2021, CVS announced it would close 900 pharmacies. In 2024, Walgreens announced it would close over 1,200 in the coming years. Last month, Rite Aid declared bankruptcy. In bankruptcy filings, it announced plans to shutter about 150 of pharmacies in Pennsylvania alone, but all of its roughly 350 stores in the state may ultimately close. In a press release, Rite Aid announced that more than 1,000 of its stores nationally will be sold to other businesses, including CVS and Walgreens, with many remaining open through the transition. A spokesperson for Rite Aid did not respond to multiple requests for comment about how many of those are in Pennsylvania, and how many locations in the state may ultimately shutter. 'A pharmacist is one of very few health care providers where you can walk in and talk to a highly educated, highly trained professional, and sometimes you don't even have to have an appointment or copay,' Berenbrok said. 'It's a really great thing, I think, for everyone to understand and recognize how important it is to have a pharmacy around.'
Yahoo
5 days ago
- Business
- Yahoo
Effort to explore passenger train to Bangor derailed after senators leave bill in limbo
Passengers board an Amtrak train at the Harrisburg, Pennsylvania station. (Photo b y Peter Hall/Capital-Star) Despite the impassioned pleas of a handful of lawmakers, the Maine Legislature essentially killed a proposal to further explore extending passenger rail to Bangor. After multiple failed votes, the Senate decided Thursday to indefinitely postpone LD 487, which rail advocates rallied behind this session as a means to bring passenger trains beyond southern Maine. The House of Representatives rejected the proposal Tuesday with a 93-52 vote, but the upper chamber has been at an impasse since senators were divided over the measure. 'This has been indefinitely postponed for 20-plus years,' said Sen. Joe Baldacci (D-Penobscot) on the Senate floor Thursday, referring to the years-long effort to expand passenger rail in the state. This bill sought to have the Northern New England Passenger Rail Authority apply for federal funding to identify a potential passenger rail corridor from Portland through Auburn, Lewiston, Waterville, Bangor and ending in Orono. Among the members of the Legislature's Transportation Committee, only one supported it with the other 12 in opposition. During the House debate, Rep. Lydia Crafts (D-Newcastle), who co-chairs the Transportation Committee, admitted there is public interest in expanding mass transit in the state, but said LD 487 doesn't align with the state's rail plan. She argued it wouldn't make financial sense for the state to invest in the line and eventually subsidize the cost of tickets because a propensity study indicated that the particular route would have low ridership. Rather, she said that study recommended the state invest in flexible, accessible bus service such as the two-year pilot project currently underway, which runs between Lewison and Portland. Sen. Brad Farrin (R-Somerset) made similar points on the Senate floor, saying that the state will continue to grow rail at a 'reasonable and responsible' rate if it follows the plan it has in place. However, Rep. Tavis Hasenfus (D-Readfield), the bill's sponsor, said the propensity study is a couple years old and doesn't account for improvements that have since been made to those tracks, which could reduce costs for the state. He also said it didn't account for all potential riders, only those who would have taken a car. But talking about what the state would have to spend is getting ahead of what LD 487 sought to do, Hasenfus argued. As he explained on the House floor, his proposal simply asked the Department of Transportation to apply for the federal funding to investigate whether a passenger rail line to northern Maine is feasible. The proposal specifically asks for the state to apply to the Federal Railroad Administration's corridor identification and development program, which is part of the Bipartisan Infrastructure Law. Meeting the deadline for this application cycle is vital because the $1.2 trillion law isn't guaranteed to be renewed, especially since President Donald Trump issued an executive order on his first day in office pausing the disbursement of funds under the law. 'The train is literally about to leave the station and if we don't get on board now, we may never have the opportunity in the future,' Hasenfus said Tuesday. Cost shouldn't be the barrier that some see it as, Baldacci said during Senate floor discussions earlier this week, because the state should have been making passenger rail investments gradually over time. He said the whole state deserves to be connected and has a right to transportation options that already exist in southern Maine. LD 487 doesn't call for a significant financial investment by the state at this point, he said, it just asks lawmakers to utilize the options available to move the process forward. Rep. Karen Montell (D-Gardiner) spoke in support of the bill, arguing that increased train options could reduce greenhouse gas emissions and road maintenance costs. She said that passenger rail could help build a Maine that is more 'future ready.' Rep. Laura Supica (D-Bangor) agreed, saying that central and northern Maine could use passenger rail infrastructure so people can have easier access to jobs and education. She said this is especially true for her community of Bangor, which can feel like 'a bit of a vortex' and disconnected from the rest of the state. Hasenfus also cited a study the Rail Passengers Association published earlier this month that found extending the Amtrak Downeaster service to Bangor could generate more than $60 million in annual economic benefits for all 16 counties and draw more than 260,000 in the first year of service. Having ridden it multiple times himself, Sen. James Libby (R-Cumberland) called the Downeaster a 'tremendous service.' Though he acknowledged it could ultimately cost money, he said he supported the measure as expanded rail service would be an asset for towns like Waterville, where he works as a professor at Thomas College. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
20-05-2025
- Business
- Yahoo
Heinz will now 'verify' restaurants that use their ketchup, including in Pittsburgh
Uber Eats will now show if a restaurant serves Heinz Ketchup in some markets as part of a broader 'Heinz Verified' campaign. Included in those markets is the ketchup's hometown Pittsburgh. 'By introducing Heinz Verified, we want to help restaurants succeed so communities can thrive, delivering quality and value for both restaurants and individuals through meaningful, best-in-class products and experiences,' Kraft Heinz North America President of Elevation Peter Hall said in a prepared statement. 'Our ambition is to help restaurant operators excel while also providing elevated dining experiences for people wherever they eat away from home.' Heinz cited a customer survey conducted in December of last year that found that '84% of people say they would like a restaurant more if it served Heinz ketchup,' a statistic that ultimately inspired the initiative. Beyond Pittsburgh, Uber Eats will roll the verification out in Chicago, Dallas, Denver, Los Angeles and Miami. Accompanying this program, Kraft Heinz has produced a new series called 'Daytrippin' that will be packaged for streaming platforms andYouTube. Actor and social media star Steven He will host, and the series will feature Pittsburgh's food scene. Click here to read more from our partners at the Pittsburgh Business Times. Download the FREE WPXI News app for breaking news alerts. Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW
CBS News
18-05-2025
- Business
- CBS News
Kraft Heinz, Uber Eats team up for program designed to show consumers which restaurants serve Heinz products
Kraft Heinz and Uber Eats have announced a collaboration and the introduction of Heinz Verified, a new program that allows consumers to find restaurants that serve Heinz products. In addition to Pittsburgh, consumers can find Heinz Verified restaurants on the Uber Eats app in Chicago, Dallas, Denver, Los Angeles, and Miami. "By introducing Heinz Verified, we want to help restaurants succeed so communities can thrive – delivering quality and value for both restaurants and individuals through meaningful, best-in-class products and experiences," said Peter Hall, President of Elevation, North America at Kraft Heinz. "Our ambition is to help restaurant operators excel while also providing elevated dining experiences for people wherever they eat away from home." "This exciting new partnership with Heinz spotlights restaurants on the Uber Eats platform across the country serving the products people know and crave," said Alex DiValerio, Head of Restaurant Operations, North America at Uber. "This collaboration makes it easier than ever for consumers to discover local favorites featuring Heinz products – and helps drive even more value to our restaurant partners." The program aims to support local restaurant operators while further elevating the dining experience for customers, an accompanying press release said.
Yahoo
15-05-2025
- Business
- Yahoo
Kraft Heinz and Uber Eats Team Up to Launch HEINZ Verified: A New Program That Shows Consumers Which Restaurants Serve HEINZ
The program will support local restaurants nationwide and launch to consumers in the Uber Eats app in six major U.S. markets PITTSBURGH & CHICAGO, May 15, 2025--(BUSINESS WIRE)--Eighty-four percent of people say they would like a restaurant more if it served HEINZ Ketchup.1 To address this desire, today, The Kraft Heinz Company (Nasdaq: KHC) ("Kraft Heinz" or the "Company") announced the launch of HEINZ Verified, a program designed to single out restaurants that serve HEINZ, signaling a commitment to quality and excellence. HEINZ Verified is the latest program from the Company's Away From Home business, which is a key growth pillar for Kraft Heinz. In today's landscape, it is harder than ever for restaurants to succeed, and Kraft Heinz aims to help enable their success. The Company is collaborating with Uber Eats as its inaugural platform partner for the program, and people in Chicago, Dallas, Denver, Los Angeles, Miami, and Pittsburgh can now find HEINZ Verified restaurants on the Uber Eats app. For a limited time, users can also enjoy $5 off Uber Eats orders of $30 or more when ordered from HEINZ Verified restaurants (Taxes and fees apply. See Uber Eats app for details). Kraft Heinz will provide restaurants that are HEINZ Verified with access to insights and consumer trends, free product samples, promotions, branded merchandise, digital resources and free marketing support designed to drive customer traffic. "By introducing HEINZ Verified, we want to help restaurants succeed so communities can thrive – delivering quality and value for both restaurants and individuals through meaningful, best-in-class products and experiences," said Peter Hall, President of Elevation, North America at Kraft Heinz. "Our ambition is to help restaurant operators excel while also providing elevated dining experiences for people wherever they eat away from home." HEINZ Verified is the latest program underscoring HEINZ's longstanding commitment to delivering unparalleled quality for its fans. For over 150 years, Kraft Heinz's largest brand has gone all-in to ensure its unmistakable taste is delivered every time. The global brand celebrates and prides itself on the irrational love it inspires – from real fans' personal love affairs with the brand to the undeniable love and care its products are made with. And it's clear fans recognize the brand's commitment to excellence, with a majority agreeing that when eating out, it has to be HEINZ.1 "This exciting new partnership with HEINZ spotlights restaurants on the Uber Eats platform across the country serving the products people know and crave," said Alex DiValerio, Head of Restaurant Operations, North America at Uber. "This collaboration makes it easier than ever for consumers to discover local favorites featuring HEINZ products – and helps drive even more value to our restaurant partners." Kraft Heinz will showcase HEINZ Verified at the National Restaurant Association Show in Chicago (May 17-20, 2025). Those attending can learn more about and sign up for HEINZ Verified, among other Away From Home innovations, while onsite. As part of the HEINZ Verified program, Kraft Heinz will also debut a new content series called "Daytrippin'" to be distributed on YouTube and packaged for streaming platforms. The series will follow actor, comedian and social media personality Steven He as he takes viewers on a road trip from Pittsburgh to Cleveland to Chicago, showcasing each city's local food culture and iconic dishes and the passionate people behind them. Restaurant operators across the U.S. who are interested in getting HEINZ Verified can sign-up now at People can nominate their favorite restaurants that serve HEINZ for the program at 1 Dec '24 KHC Custom Condiment Survey, Dig Insight. ABOUT THE KRAFT HEINZ COMPANY We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let's Make Life Delicious. Consumers are at the center of everything we do. With 2024 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of eight consumer-driven product platforms. As global citizens, we're dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting or following us on LinkedIn. ABOUT UBER Uber's mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 61 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities. View source version on Contacts Media Contacts The Kraft Heinz CompanyMedia@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
