SF Gate (01/12/12) Colliver, Victoria; Pender, Kathleen
A dispute between Walgreens and Express Scripts has been continuing for over a year, and the recent collapse of negotiations has prompted the ending of business relations since the beginning of January. Millions of patients nationwide are being affected, and the Bay Area of San Francisco in particular is struggling, as Walgreens makes up 40 percent of the market share of pharmacies in the area. Express Scripts serves as a pharmacy benefits manager, acting as middlemen between drug manufacturers and pharmacies/customers by negotiating prices for drugs and the rate the pharmacies will receive in reimbursement for filling the prescription. Express Scripts is claiming that Walgreens asked for substantially more in reimbursement than other pharmacies, while Walgreens insists that Express Scripts was offering less than industry average. Other pharmacies have seen increases in business since the breakdown of negotiations, and Express Scripts notes that most customers have alternative pharmacy choices within a half mile.

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