Patient Letter: Gatti Closing
Dear Gatti Patients and Customers:
It is with great sadness that after nearly 90 years in business in downtown Indiana, Gatti Pharmacy will be closing our doors forever on June 29th, 2020. Our prescription files will be transferred to Rite Aid at 375 Philadelphia Street, effective June 30th, 2020. Unfortunately the practices of pharmacy benefit managers, or PBMs (the companies that process prescription benefits on behalf of insurance companies), are making it impossible to stay in business.
I am so grateful for the support of our patients and customers as well as the Indiana Community at large. We have enjoyed taking care of you. It has been a great privilege to be your pharmacy. I am also proud of the Know You By Name Pharmacy team. They have gone above and beyond to care for you.
We are NOT going out of business because of a lack of support, innovation, caring, or any of the normal things that sustain and help a business thrive. Because of your support we have had growing sales and volume. In most lines of business this leads to success. But we continue to lose money on a majority of prescriptions because of middleman PBMs. We have no control over the rates they reimburse us at or the fees they charge. As a result, about 80% of the prescriptions we dispensed in 2019 and 2020 were reimbursed at less than our cost to dispense them. In other words, we lose money on 80% of prescriptions.
We’ve been providing increasingly higher levels of service at lower rates for years, hoping and advocating for change to our payment model. Despite my optimism and hope that change would come, it hasn’t arrived in time to save Gatti Pharmacy or our other fellow independent pharmacies that have also been forced to close recently. We are proud though that Gatti Pharmacy served as a model for how to do community pharmacy right. We offered medication synchronization to nearly three-quarters of our patients, services like free delivery, special medication packaging, vaccinations, as well as a variety of other innovative services and products.
It is heartbreaking to me that the patients that we have cared so deeply for and who have supported us for so long will no longer be able to receive our care. Fortunately Rite Aid has committed to continue several of the services that we know our patients have come to value and appreciate. They can be reached at 724-465-2243.
I thank you, from the bottom of my heart, for your support, whether it’s been for a few months or for over 50 years! You have given us a reason to care deeply about what we do every day. Thank you! I wish you all the best.
With sadness but deep gratitude,
Stephanie Smith Cooney, Pharm.D., Gatti Pharmacy President