Summary:Ā Decreased pay for hard-working pharmacists, and growing support for unions. Maybe thereās a connection.
U.S. Approval of Labor Unions at Highest Point Since 1965, Gallup, August 30, 2022, byĀ Justin McCarthy
Seventy-one percent of Americans now approve of labor unions. Although statistically similar to last yearās 68%, it is up from 64% before the pandemic and is the highest Gallup has recorded on this measure since 1965. [The nadir was 48% in 2010.]
How Pharmacy Work Stopped Being So Great, New York Times, August 20, 2022, by Noam Scheiber
If any group of workers might have expected their pay to rise last year, it would arguably have been pharmacists. With many drugstores dispensing coronavirus tests and vaccines while filling hundreds of prescriptions each day, working as a pharmacist became a sleep-deprived, lunch-skipping frenzy ā one in which ornery customers did not hesitate to vent their frustrations over the inevitable backups and bottlenecks.
āI was stressed all day long about giving immunizations,ā said Amanda Poole, who left her job as a pharmacist at a CVS in Tuscaloosa, Ala., in June. āIād look at patients and say to them, āIād love to fill your prescriptions today, but thereās no way I can.āā
Yet pay for pharmacists, who typically spend six or seven years after high school working toward their professional degree, fell nearly 5 percent last year after adjusting for inflation. Dr. Poole said her pay, about $65 per hour, did not increase in more than four years ā first at an independent pharmacy, then at CVS. ā¦
[Pharmacy] consolidation generated large fees for workers at the top of the income ladder ā financiers and corporate lawyers ā but slowed the growth of retail outlets where pharmacists could find employment. After striking a deal in 2017 to acquire roughly 2,000 Rite Aid stores, Walgreens shut down more than 500 locations. It closed a few hundred more over the next three years.
Automation has further reduced demand for workers ā many pharmacists now spend far less time processing insurance claims because software does it for them.
Pharmacies also faced external challenges. To hold down the cost of prescription drugs, insurance companies and employers rely on so-called pharmacy benefit managers to negotiate discounts with drugmakers and pharmacies. Consolidation among benefit managers gave them more leverage over pharmacies to drive prices lower. (CVS merged with a large benefits manager in 2007.)
Big drugstore chains often responded by trying to rein in labor costs, according to William Doucette, a professor of pharmacy practice at the University of Iowa. Several pharmacists who worked at Walgreens and CVS said the formulas their companies used to allocate labor resulted in low levels of staffing that were extremely difficult to increase.
Comment:
By Jim Kahn, M.D., M.P.H.
On this Labor Day, we see two conflicting trends. For labor advocates, the good news is that support for labor unions is at a 50-year high. The bad news is that corporations are lowering pay for pharmacists, despite the work burdens of COVID, a robust economy, and generally rising wages.
Corporate machinations that led to pharmacist pay cuts include buyouts and mergers, retail outlet reductions, and the invention of a new corporate intermediary, the pharmacy benefit manager. Corporate executives and shareholders gain; over-burdened front line providers lose.
Maybe these trends arenāt conflicting! Maybe growing support for unions reflects a rising awareness of vulnerability to the cost-cutting profit-maximizing actions of private equity and corporations more generally.
Single payer would incorporate collective bargaining for payment rates to professionals.
Single payer would remove the financial burdens of health care from workers (and everyone). Wages would rise with the end to employer premium payments.
Letās keep up the struggle for better health care, better wages, and delinking of the two!
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