New Myth/Fact: Most Ontario Pharmacies are Small Businesses

The Claim

In its public and media relations, the Ontario government is positioning community pharmacy funding cuts as part of a “battle” with “big drug chains”. Briefed by an Ontario government official, Adam Radwanski of the Globe and Mail wrote on December 13, 2009:

The government’s challenge will be to convince Ontarians that its quarrel isn’t with pharmacists, but the faceless corporations they work for.

The Facts

The “faceless corporations” pharmacists work for in Ontario are mostly individual entrepreneurs – pharmacists who own and operate their own stores.

• 51% of Ontario pharmacies are owner-operated small businesses.
• These are pure independents and independents that purchase together under a “banner.”
• 20% of Ontario pharmacies are owner-operated franchises – also small businesses responsible for their own profit and loss.
• Only 29% of Ontario pharmacies are owned by drug store chains.

The Bottom Line

The Ontario government would like the public to believe that funding cuts would only affect “big chains” and “faceless corporations”. But that’s not the truth.

Most Ontario pharmacies are owner-operated small businesses. Funding cuts to community pharmacies would have a direct and severe impact on these small businesses that deliver neighbourhood health care.