CVS pulling out of Puerto Rico (22 stores)

[Romr123]

https://www.msn.com/en-us/money/compani ... 5e7&ei=142

[storewanderer]

Interesting. This was an Organic expansion market for them. They haven't been there very long. Walgreens has a much longer history there.

Many of these were in the CVS y Mas format.

I wonder if the pharmacy insurance etc. works differently in Puerto Rico than in the US.

[Alpha8472]

Puerto Rico has a large percentage of the population on Medicaid. So the reimbursement rates on prescriptions is pretty bad. CVS realized that these Puerto Rico pharmacies are more likely to lose money. They sold the pharmacies to another pharmacy chain.

Now CVS can do what it is most expert at. CVS Caremark will give terrible reimbursement rates and make a huge profit on the CVS Caremark insurance side. Meanwhile the pharmacies will suffer.

Insurance in Puerto Rico is very much like the rest of the U.S. except that a large number of people are on money losing government funded health plans.

Taking a look at the ads for Farmacia Caridad it looks like they sell appliances, beds, furniture, etc. It is more of a variety or department store than a drugstore.

CVS is still running a specialty pharmacy in Puerto Rico. CVS Caremark can give its own specialty pharmacy favorable rates and still make a profit. There is still money to be made on expensive drugs since no one else on the island will want to source such expensive drugs.

[storewanderer]

Looking at the photos of these PR CVS Stores it looks like they have all been remodeled fairly recently but the remodels are a bit different than the US. None of the recent remodels include the current carpet they put into US remodels. Also no self checkout. The stores appear to have few customers. The remodels either keep the old carpet from opening, or they have a cement floor. The cement floors look pretty good actually; maybe they do that in PR due to flooding risk.

I am wondering if there are other parties in PR who sell/source prescriptions from somewhere other than US supply chains that deliver lower prices.

PR McDonalds are connected to Mexico McDonalds rather than US McDonalds for menu, supply chain, etc. and pricing is dirt cheap compared to US. Guam is still a US McDonalds though.

[jamcool]

Being that PR is a U.S. commonwealth, not a state they have lower wages and can buy from sources not available to stores in the States. Also most of our pharmaceuticals were made in PR until the 90s, I don’t know if some of that is still in existence.

[mbz321]

Taking a look at the ads for Farmacia Caridad it looks like they sell appliances, beds, furniture, etc. It is more of a variety or department store than a drugstore.

Oh wow, such an odd variety of items! Also something that stuck out to me...they are selling 'Equate' hand soap, 'Great Value' light bulbs, and a 'Hart' tool set. And also, Dollar General steel wool pads?

Direct link to current ad: https://cdn.shopify.com/s/files/1/0371/ ... 1706274142

[veteran+]

Looking at the photos of these PR CVS Stores it looks like they have all been remodeled fairly recently but the remodels are a bit different than the US. None of the recent remodels include the current carpet they put into US remodels. Also no self checkout. The stores appear to have few customers. The remodels either keep the old carpet from opening, or they have a cement floor. The cement floors look pretty good actually; maybe they do that in PR due to flooding risk.

I am wondering if there are other parties in PR who sell/source prescriptions from somewhere other than US supply chains that deliver lower prices.

PR McDonalds are connected to Mexico McDonalds rather than US McDonalds for menu, supply chain, etc. and pricing is dirt cheap compared to US. Guam is still a US McDonalds though.

I find it odd that Puerto Rico McD's menu is connected to Mexico McD's menu.

The cuisines are very different. Caribbean is highly Afro influenced where Mexico (including Central & S. America) is strongly Indigenous influenced.

[veteran+]

Being that PR is a U.S. commonwealth, not a state they have lower wages and can buy from sources not available to stores in the States. Also most of our pharmaceuticals were made in PR until the 90s, I don’t know if some of that is still in existence.

Puerto Rico is extremely limited (by U.S. design) in whom they can buy from, what they can import and even what they can export and to whom. Prices are also highly regulated by the U.S.

The U.S. has a powerful stranglehold on Puerto Rico creating a scenario for failure.

[Romr123]

I find it odd that Puerto Rico McD's menu is connected to Mexico McD's menu.

The cuisines are very different. Caribbean is highly Afro influenced where Mexico (including Central & S. America) is strongly Indigenous influenced.
[/quote]

Puerto Rico gets weird stuff all the time---the offshore areas often are a little wonky (like KMart Guam!)
KFC Hawaii became an offshoot of KFC Japan in the 90s...and there were vehicles which are available in Puerto Rico that aren't sold in the states (a small Mazda is the most recent one...https://jalopnik.com/here-is-how-you-an ... 1827293464). For many years, OnStar was not available in Puerto Rico (the cellular network down there was tough to work with for a service like OnStar).

[storewanderer]

Being that PR is a U.S. commonwealth, not a state they have lower wages and can buy from sources not available to stores in the States. Also most of our pharmaceuticals were made in PR until the 90s, I don’t know if some of that is still in existence.

Puerto Rico is extremely limited (by U.S. design) in whom they can buy from, what they can import and even what they can export and to whom. Prices are also highly regulated by the U.S.

The U.S. has a powerful stranglehold on Puerto Rico creating a scenario for failure.

Do you have a link that better explains how that works pertaining to PR retailers buying prescription drugs and being forced to a limited number of options by the US?

Looking at the ad the buyer has posted, many of those items are not US items. They are from suppliers elsewhere in the world.

I read CVS is paying pharmacy techs $18-$19/hr in PR and the buyer only pays $11/hr... I am still wondering if the buyer has a way to source cheaper drugs...