Of the 11 pharmacies in Auburn, only two are independents, a figure that mirrors a national trend - but don't blame their chain competitors for the demise.

While independent drug stores comprised 47 percent of the total community retail pharmacy outlets in 1994, they made up just 32 percent in 2004, according to figures from the National Association for Chain Drug Stores.

Laura Miller, senior economist with the NACDS, said thousands of independent pharmacies have closed over the years, which can largely be attributed to the growth of managed care and reduced reimbursement rates on prescription drugs.

One local pharmacist, in fact, John Platt, of the Medicine Shoppe, stopped taking insurance in 2004 as a way to continue to survive in today's pharmaceutical market.

Platt also survives by zeroing in on the niche market of compound prescriptions, which the chain pharmacies cannot provide.

“It's a whole different type of pharmacy business,” Platt said. “Anything the doctor needs, I can figure out.”

In addition to the niche compounding market, Platt said he also stays afloat by catering to customers who don't have insurance, since Platt stopped accepting insurance claims. The Medicine Shoppe focuses on providing cheap generic brands, which are more affordable to uninsured customers.

Area doctors are good about working with him to find generic prescriptions that would work for their patients, Platt said.

“It's worked out very well,” he said.

When he stopped taking insurance, his customer volume decreased, which meant he could spend more energy focusing on his compound prescription business.

Sometimes, in fact, the chain drug stores will send customers to Platt if there is a prescription they are unable to fill. The chains, he said, don't have the time to focus on compounding considering the larger number of customers they serve.

“They would have to stop what their doing,” Platt said. “Over the years, (compounding) has become a major part of what we do.”

For that reason, Platt said he doesn't expect the new Walgreens to have any sort of impact on his business.

Richard Pinckney, pharmacist at Rx City, the other independent pharmacy in the city, wasn't too concerned about the new addition either.

The reason for independent pharmacy closures over the past several years, Pinckney said, is not a result of competition from the chains - it's strictly the insurance reimbursement reductions.

“The only way that an (independent) pharmacist can make it is to do more volume,” he said. “Why we're getting pushed out is because of third-party reimbursement rates.”

Unlike Platt, Pinckney accepts insurance from customers - the way he stays afloat is by servicing more customers.

Pinckney said he makes on average about $2 above the cost of a sale, which doesn't include the cost of the bottles, the labels, staff salaries or utilities.

He has carved out his own niche market by catering to customers in nursing homes and by offering more personalized service by counseling each customer about how to take the drugs beforehand.

While he said the opening of the new Walgreens may initially impact his business, since customers will be enticed by grand opening sales and curiosity involving the new pharmacy, Pinckney said he would expect all his customers to return after the opening day excitement dies down.

“I know you, I know your mom, I know you're sister. In a chain, they don't know you, you're a number,” he said, though he noted that chain pharmacists were only abiding by guidelines set by the company in the service they provide. “They're doing exactly what they're told to do. ... It's just a different service.”

Staff writer Anne Gleason can be reached at 253-5311 ext. 248 or at anne.gleason@lee.net