7 Ways Pharmacies Can Grow Amid Challenges in 2025

Pharmacies are pressured by drug shortages, rising costs, staffing issues and changing patient expectations and many independent and chain pharmacies are finding it harder to maintain margins and meet demands. Understanding how pharmacies can overcome challenges today means thinking beyond traditional retail models. From investing in clinical services to embracing pharmacy automation solutions, growth is possible.

Current Challenges in the Healthcare Industry

The healthcare industry is operating under intense pressure. Margins are tighter, staff is limited, workloads are growing and expectations are shifting rapidly. These aren’t minor obstacles but structural challenges that demand bold responses. To succeed, pharmacies must first understand exactly what they’re up against.

Shrinking Reimbursements

Unsustainable reimbursement models are pushing pharmacies to the brink. PBMs continue to apply downward pressure on margins through retroactive DIR fees and reduced payouts. In some cases, pharmacies lose money simply by filling prescriptions. Some pharmacies lose as much as $100 per brand-name prescription. 

This is no longer just a rural or independent pharmacy issue. Even larger chains are feeling the financial strain. Without serious reform or innovation, this model fails everyone — pharmacies, patients and the broader healthcare system.

Drug Shortages and Pricing Instability

The supply chain remains unreliable. Pharmacies grapple with unpredictable drug shortages that disrupt care and drive patients away. Critical medications are backordered or unavailable for weeks. 

At the same time, drug prices continue to climb. The average price of medication in the U.S. is almost three times higher than in 33 other high-income nations. Pharmacies must either absorb the cost or pass it on — neither sustainable. These shortages and price hikes make inventory management a high-stakes guessing game. 

The ongoing volatility in the pharmaceutical supply chain isn’t expected to stabilize anytime soon. Generic drug manufacturers continue to face quality control issues, factory shutdowns and geopolitical instability, all of which impact availability. Caught in the middle, pharmacies must manage frustrated patients and operational strain.

Labor Shortages

There aren’t enough pharmacy technicians or experienced staff to meet demand. Labor shortages affect pharmacies across the board, leading to reduced hours, longer wait times and overwhelmed teams. The rising cost of living makes it harder to attract and retain talent, especially for low-to-mid wage roles.

Burnout accelerates the problem. Many pharmacy professionals leave the profession entirely due to relentless workloads and emotional fatigue. Pharmacies that fail to address burnout already see higher turnover and lower service quality. A 2022 survey from the National Community Pharmacists Association revealed that 70% of pharmacies reported being unable to fill roles. This environment forces the remaining staff to work longer hours with fewer breaks, increasing the likelihood of dispensing errors. 

This is where pharmacy automation solutions offer immediate relief. Automating high-volume, repetitive tasks frees up the remaining staff to focus on care, reduces error rates and stabilizes daily operations.

Administrative Overload

Bureaucracy is becoming a full-time job. From insurance paperwork to compliance tracking to inventory reconciliation, administrative tasks are swallowing hours of productive time every week.

Rising Cost of Living

Financial pressure has a direct impact on medication adherence. Patients might skip doses, delay refills or abandon expensive prescriptions altogether. Pharmacies need to anticipate these behaviors and proactively intervene. Whether it’s promoting discount programs, sourcing lower-cost alternatives or offering flexible payment options, the key is staying empathetic while ensuring care doesn’t suffer due to cost.

Intensifying Competition from Non-Traditional Players

Retail giants benefit from data ecosystems that traditional pharmacies don’t have. With access to patient shopping habits, insurance details and health records, companies like CVS and Amazon can offer hyper-targeted services and loyalty rewards. Independent pharmacies must respond by doubling down on personalized care, face-to-face trust and a local presence.

Rising Patient Expectations

Today’s patients expect speed, convenience and a seamless care experience. They want real-time updates, mobile access and consults that feel personal. Pharmacies that can’t meet those expectations risk losing customers to more agile competitors or telehealth providers. The standard for service has changed and pharmacies must evolve or fall behind.

Regulatory and Reimbursement Complexity

Pharmacies are navigating an increasingly tangled web of reimbursement models, prior authorization requirements and fluctuating insurance contracts. Margins continue to shrink due to unpredictable clawbacks from PBMs and low dispensing fees. Staying compliant requires constant monitoring of state and federal policies — something most pharmacies simply don’t have the time or internal infrastructure to handle efficiently.

Technology Gaps and Cybersecurity Threats

While pharmacy tech advances, many independent and rural pharmacies still lack digital infrastructure. Outdated POS systems, unintegrated software and manual inventory processes create inefficiencies and open the door to human error. Even more concerning is the rising risk of cyberattacks targeting healthcare providers for sensitive patient data. In 2023, there were 775 data breaches, exposing over 133 million records.

Limited Access to Capital for Independent Pharmacies

Unlike national chains with deep corporate backing, independent pharmacies often operate on razor-thin margins. When it comes time to invest in upgrades — whether that’s pharmacy automation solutions or telehealth platforms — they face real challenges securing funding. Traditional lenders may view pharmacies as high-risk, especially in volatile or underserved areas.

How Pharmacies Can Overcome These Challenges in 2025

Despite the pressures facing the industry, there are paths forward. The pharmacies that will thrive in 2025 are the ones willing to innovate, invest in efficiency and evolve their role in the healthcare ecosystem. Growth in this environment is about doing things smarter, faster and more strategically.

1.    Embrace Pharmacy Automation Solutions to Improve Efficiency

Staffing shortages, rising costs and burnout demand automation. Pharmacy automation solutions can handle the operational burdens that drain human resources. For example, automated dispensing systems speed up prescription fulfillment and reduce the risk of error. Smart inventory systems reorder stock in real time based on usage and demand, preventing overstock and critical shortages.

This can also streamline administrative tasks like claims processing, patient notifications, insurance verification and even compliant tracking. These processes can be automated or semi-automated to save hours every week. This leaves pharmacists with more bandwidth to engage in clinical care, fewer mistakes and a more reliable business model.

The cost savings from automation are significant — not just in labor but also in reducing shrinkage, waste and inventory loss. In high-volume pharmacies, automated dispensing systems can increase throughput, allowing staff to reallocate time toward patient counseling and high-value services. In 2025, as operating costs continue to rise, adopting pharmacy automation solutions is a necessity.

2.    Expand Clinical Services to Diversify Revenue

Dispensing alone won’t sustain a modern pharmacy. Pharmacies need to become community healthcare destinations. That means offering immunizations beyond the flu shot — travel vaccines, shingles and HPV. It also includes testing services for strep and influenza, especially as patients seek care without visiting urgent care or primary care providers.

Medication Therapy Management (MTM) services and chronic disease support — especially for diabetes, hypertension and asthma — can drive patient outcomes and reimbursement. Pharmacies can also explore offering wellness consultations, health screenings and even lifestyle coaching. These clinical services build trust and loyalty with patients, and they open up new, sustainable revenue streams that aren’t tied to volatile drug prices or third-party payers.

Importantly, insurance can reimburse many of these services, offering a real opportunity to recoup training, equipment and staffing investment. Pharmacies already invested in private consultation rooms or added nurse practitioners are ahead of the curve. Others can start small with low-barrier offerings like flu shots and grow incrementally.

3.    Build Stronger Patient Engagement Through Technology

Patient expectations have shifted. They want the same seamless digital experience from their pharmacy that they get from their bank or favorite retailer. Pharmacies that invest in this area can gain a competitive edge. 

Start with the basics, like online refill requests, text reminders and mobile apps for real-time prescription tracking. Then build on that with medication adherence tools, two-way messaging, digital consultations and automated follow-ups. Tech-powered engagement drives satisfaction and improves outcomes. When patients stay on top of their meds and feel supported between visits, they’re more likely to stay loyal to your pharmacy. 

Going digital also improves continuity of care. When patients have access to their medication history and communication channels with their pharmacy, they’re more likely to stay on therapy and avoid costly treatment gaps. In competitive markets, the pharmacies that offer the smoothest, most user-friendly digital experiences will retain more patients and win market share from less tech-savvy competitors.

4.    Strengthen Supplier and Wholesaler Relationships

With persistent drug shortages and unpredictable pricing, supply chain agility is now a core growth strategy. Pharmacies must move beyond transactional vendor relationships and toward strategic partnerships with wholesalers and manufacturers. 

That means negotiating better terms, increasing visibility into supply trends and diversifying sources to avoid single points of failure. It also means having inventory tools that can forecast usage patterns, flag slow-moving stock and track expiration dates before they become a loss. 

Some pharmacies are even forming regional purchasing cooperatives or joining group purchasing organizations (GPOs) to improve buying power and reduce per-unit costs. The pharmacies that master their supply chain in 2025 will outmaneuver those that don’t.

Relationships matter even more during a crisis. When drug shortages hit, suppliers prioritize pharmacies that have built trust, communicated proactively and maintained consistent ordering patterns. Pharmacies that regularly analyze usage trends and work collaboratively with wholesalers to forecast needs will better position themselves to receive allocation during constrained periods.

5.    Focus on Staff Retention and Culture

The labor shortage isn’t going away, but you can mitigate the impact. Pharmacies that create a workplace culture of support, growth and recognition will attract and keep talent, even in a competitive market. 

Start by offering competitive pay and benefits. Then invest in career development — certifications for pharmacy technicians, leadership training for managers and continuing education for pharmacists. Flexibility matters too. With burnout at record highs, even small gestures like predictable schedules, mental health support or cross-training staff for variety can improve morale and reduce attrition. Employees want to feel like they’re more than cogs in a machine. Pharmacists that show they value their teams will see stronger performance, lower turnover and better patient service. 

Pharmacies can also explore incentive programs tied to team performance, customer satisfaction or clinical service growth. Simple changes, like celebrating small wins, investing in ergonomic workstations or offering stipends for professional development, can go a long way toward showing staff that they’re valuable.

6.    Explore Niche Markets and Community-Specific Services

Not every pharmacy needs to serve everyone, but every pharmacy must serve someone exceptionally well. Specializing can be a powerful way to drive growth. 

Consider compounding services for dermatology, pediatrics or hormone therapy. Provide fertility medication support or collaborate with local OB/GYNs. Some pharmacies thrive by offering full-service support for senior patients, including compliance packaging, delivery and Medicare consulting. Understanding your unique community needs and responding with tailored, expert-level care can transform your pharmacy from just another drugstore into an indispensable resource. 

These niches often bring loyal, high-value customers who seek expertise over convenience. Word-of-mouth and targeted local marketing can quickly establish your pharmacy as the go-to for that niche. Once patients trust you in one area, they’re more likely to shift all their pharmacy needs to your business.

7.    Advocate for Policy Reform and Industry Transparency

Pharmacies must step into advocacy roles to grow in 2025. This means supporting policy changes to reform DIR fees, regulate PBMs and ensure transparent, fair reimbursement structures. 

Pharmacies should engage with local lawmakers, participate in national pharmacy organizations and educate patients about the industry pressures affecting their care. Advocacy builds awareness — and long term, it drives the systemic changes needed to make growth sustainable. 

The pharmacy landscape is changing fast, but the challenges aren’t insurmountable. With the right strategy, the right tools and a willingness to innovate, growth is possible. By adopting pharmacy automation solutions, expanding services, leveraging technology, and investing in staff and community, pharmacy leaders can redefine their value.

Streamline Your Pharmacy’s Future With Capsa Healthcare

Capsa Healthcare’s central fill pharmacy automation solutions offer a powerful answer to the most pressing challenges facing modern pharmacies. Designed to streamline high-volume dispensing, reduce labor strain and minimize errors, our systems are customizable, efficient and built to scale as your business grows. 

Whether you’re battling workforce shortages, rising operational costs or increasing patient demand, our automation technology enables your pharmacy to operate smarter. With Capsa, you gain a reliable partner committed to helping you improve accuracy, increase throughput and free up staff to focus on delivering exceptional patient care. 

Gaurav Agarwal is CEO of Capsa Healthcare and brings over 25 years of leadership experience in driving innovation and commercial success across the medical devices, diagnostics, and healthcare IT sectors. Most recently, he served as President and CEO of Vyaire Medical, the global leader in respiratory medical devices. Before Vyaire, Agarwal was President and Chief Commercial Officer at Acelity, Inc., the largest wound care company in the world. He has also held senior leadership positions at Smith & Nephew and GE.