Tuesday, September 18, 2007
Killing off small business
Pharmacist Dave Redden stands for a photo outside his closed store in Sweet Home, Ore., Friday, Sept. 14, 2007.
Redden joined a growing trend among small-town pharmacists this past summer and closed down Home Town Drugs and Gifts after 25 years--he largely credits the Medicare drug benefit program for the demise of his business. (Credit AP Photo/Don Ryan)
Dave Redden as the proud owner of Home Town Drugs and Gifts in Sweet Home, Oregon, United States, closed down due to competition from mail-order pharmacies and larger retailers played a role in his decision.
Redden, 62, said before the Medicare drug benefit started on Jan. 1, 2006 many customers paid cash.
Now the insurance companies who pay him demand bigger discounts and often payments came after months. Hence it was better for him to give up ownership of his store and go behind the counter as an employee.