Community
Walgreens Exiting East Oakland Because Medicare and Medicaid Customers Don’t Generate Enough ‘Green’ for $140 Billion Corporation
The councilmembers of District 7 and District 6 joined with more than 2,500 neighborhood petitioners to condemn the less than one month notice.
Oakland City Councilmembers Treva Reid and Loren Taylor announced that they will press Walgreen’s to abandon their plans to close their pharmacy by July 29 at 8102 International Boulevard.
The councilmembers of District 7 and District 6 joined with more than 2,500 neighborhood petitioners to condemn the less than one month notice.
Taylor and Reid pointed out that Walgreens’ lease still has six month remaining before its expiration in January 2022.
They denounced the abandonment of seniors, especially those who reside at Allen Temple Arms across the street from the pharmacy.
“We are disheartened that in the midst of the pandemic, with many health disparities in diagnoses and with the next available pharmacy located miles away, they are furthering the health crisis,” said Reid. “With all the nurses and medical personnel that patronize this pharmacy they were disrespected to hear of the closing by way of second-hand social media postings. We will continue to pursue this issue at the local, regional and national levels to find other ways to solve this problem.”
Taylor said Walgreens exacerbated the pain of the closing by giving the reason that the high percentage of low-income Medicare and Medicaid patients who get their prescriptions filled results in a lower profit margin for the corporation worth $140 billion. He also pointed out how they were making a mockery of their mission statement which is to “Champion the health and well-being of every community in America.”
Taylor and Reid presented the following fact sheet that answers the questions asked of Walgreens:
So why is Walgreens closing?…
- The first reason they gave was the rent… After speaking with the property owner I learned that Walgreens asked for close to a 50% reduction of rent and to lock that in for double-digit years, something that the property owner couldn’t afford. In addition, I learned that Walgreens still has six months left on their lease during which they will continue paying their rent. If Walgreens is obligated to pay its lease through January (even if it chooses not to renew that lease) why close six months early?
- The second reason they gave was the ‘shrinkage’ – a portion of which is due to theft. We know this is a problem across the state. The representatives from Walgreens that we talked to this morning admitted that the shrinkage rates due to theft are not as high as in San Francisco where they are closing stores. This is a problem across the state – even to the point that Gov. (Gavin) Newsom just yesterday (July 22) signed into law a bill extending a program that allows the California Highway Patrol to operate regional task forces to fight organized retail theft with other law enforcement agencies.
- The third reason that they gave is that the high percentage of Medicaid/ Medicare patients leads to lower profit margins because the state reimbursement is not as high as private insurance. This reason squarely places low-income residents of California in the crosshairs of any corporate decision to close stores and reduce services. I reject this rationale for a store closure – especially from a healthcare company where we know in a managed care environment, we must balance the higher profit services with the lower-profit services so that in aggregate we support all residents/ patients.
- Taylor said, “I stand here today with my fellow Councilmember, Treva Reid, in whose district we stand and she and I represent districts and a population of residents who are often cast aside and marginalized. Districts that still suffer from the effects of institutionalized racism, redlining, white flight and the war on drugs. A true partnership to champion the health and well-being of every community does not occur when a unilateral decision is made to close a store without more than a few weeks’ notice through a sign being posted on a window alerting customers to the closure.
My office was not proactively engaged by Walgreens, and in fact I found out about this based on a Facebook post by a resident who took a picture of the sign. The communication that came to me through a Walgreens District Manager was that the property owner was being unreasonable.”
