Pharmacy Buying Groups Today

: By pooling resources, smaller community pharmacies can achieve economies of scale similar to large chains like CVS . A high-performing buying group can improve a pharmacy's profit margins by 2% to 6% , potentially resulting in hundreds of thousands of dollars in annual savings.

: Many groups are structured as cooperatives, collecting administrative fees from suppliers and distributing a portion back to member pharmacies as monthly or quarterly rebates. Types of Buying Group Structures pharmacy buying groups

: Modern groups offer services beyond procurement, such as assistance with PBM audit preparation , business development, and implementing clinical programs (e.g., vaccine kits or health screenings) to diversify revenue streams. : By pooling resources, smaller community pharmacies can

: Buying groups employ dedicated specialists who review and negotiate complex wholesaler contracts, ensuring independent owners receive the most favorable terms without needing to be experts themselves. Types of Buying Group Structures : Modern groups

: Profits generated by the group's activities are returned to the organization's owners rather than the member pharmacies.

: These typically generate income through administrative fees from contracted suppliers to support the association's broader mission and services.

Pharmacy buying groups, often referred to as Group Purchasing Organizations (GPOs), are alliances formed by independent pharmacies to aggregate their purchasing power and negotiate better pricing and terms with drug wholesalers. As of 2026, these groups have evolved into full-service organizations that provide operational tools, clinical program support, and advocacy to help independent pharmacies compete in a market dominated by large retail chains and Pharmacy Benefit Managers (PBMs). Core Functions and Benefits