Community pharmacies warn of potential closures due to electricity price hikes
By THE STAR STAFF
The Community Pharmacies Association of Puerto Rico (AFCPR by its initials in Spanish) warned on Thursday that rising electricity costs could lead to reduced operating hours, limited clinical services, and even the closure of pharmacies.
Consequently, the association has requested that the Puerto Rico Energy Bureau (PREB) not authorize any further rate increases.
“Community pharmacies cannot pass on increased energy costs to patients, as these expenses cannot be added to the price patients pay for medications -- prices that are already negotiated by Pharmacy Benefit Managers (PBMs) or, in the case of government-sponsored coverage, the ‘Plan Vital’ program,” said Isaías Serrano, president of the AFCPR board of directors, in a written statement.
The pharmacist noted that the establishments rely on prescription medication sales for more than 80% of their revenue, which limits their ability to absorb rising operational expenses.
The organization pointed to a 5.28-cent-per-kilowatt-hour adjustment to fuel and power-purchase charges, which is in effect from Oct. 1, 2023, through Dec. 31 of this year.
According to figures cited by the AFCPR, the adjustment represents a 17.1% increase for small and midsize businesses, and up to a 19.7% increase for large industrial clients.
Serrano noted that pharmacies have specific electricity requirements, driven by the need for continuous refrigeration of medications -- such as insulin and vaccines -- as well as the operation of dispensing systems, electronic health records and medical insurance billing processes.
Those costs are compounded by the equipment required to provide immunization services, diagnostic testing and chronic disease management, as well as the investment in electrical generators and fuel to maintain operations during power outages.
“We call upon the director of the Energy Bureau not to approve yet another rate hike to cover the inefficiencies of the companies contracted to handle fuel production and generation on the island,” Serrano stated. “Small and midsize businesses on the island cannot withstand another increase.”
He noted that the association had already expressed its concerns regarding energy costs in a letter sent on Feb. 5 to PREB Chairman Edison Avilés Deliz.
The AFCPR joined other commercial sectors in opposing further electricity rate hikes, citing the potential impact they could have on the continued viability of their operations.
According to the organization -- which represents small and midsize pharmacies on the island -- there are some 850 community pharmacies operating in Puerto Rico.
