The Institutional Pharmacies industry is relatively immune to fluctuations in the macroeconomic climate due to its nondiscretionary nature. However, the industry experienced some declines in recent years due to receding Medicare and insurance reimbursement rates. Generic drugs have accounted for an increasingly large portion of prescriptions filled over the past five years, so this reimbursement limit has slowed growth and reduced industry revenue. Moreover, the industry's high dependency on Medicare reimbursements has raised concerns about operators' long-term profitability and stability. Over the next five years, the aging population is forecast to expand as a percentage of the total population. Consequently, IBISWorld expects revenue to increase during the five-year period to 2022.
This industry comprises pharmacies that provide a range of services to residents of nursing homes, hospitals or hospice environments that do not have an on-site pharmacy. In addition to providing pharmaceuticals, institutional pharmacies also provide consulting services, which include monitoring the control, distribution and administration of drugs and assisting with regulation compliance.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.