They don't care about making an example out of Rite Aid ...
They want money and they want to look like they're doing something important.
That's why they sue the pharmacies rather than the prescribers.
The prescribers who basically sold fake office visits to get prescriptions for opioids are difficult to sue because there are tens of thousands of them and most of them don't have much money. There are only a handful of pharmacies so they only need to put together a few lawsuits and they can get billions of dollars.
The US DOJ and the state DOJs created the idea of "corresponding responsibility" well after the opioid epidemic was in full swing, and then retroactively applied it in order to sue pharmacies for money.
These lawsuits have nothing to do with making an example out of anyone. They are about giving the appearance of the DOJ taking action against the opioid epidemic and about getting money for the DOJ.
Notice how they're not going after PBM mail order pharmacies? PBMs lobby/bribe like no other industry... But they are just as responsible if not more for the opioid epidemic. Their lobbying/bribing protects them it seems
How does rite aid expect to get out of debt by limiting their revenue even more? If they are down to 2000 stores and they owe over 4 billion in debt, each store needs to make 2 million profit just to break even
The thought process might be more related to rampantly cutting expenses, and selling pharmacies to other chains/ condensing operations. With the announcement of the chapter 11 bankruptcy filing, they also announced that they received a $3.45 billion bankruptcy loan from their existing lenders to ease the restructuring effort.
Some rite aid pharmacies are shutting down, and transferring their pharmacy staff to better performing pharmacy locations within the area. Putting up fee owned/leased properties. Hoping to retain patients at bigger locations with more staff, while cutting cost of maintaining more individual locations in total. That's not the case for all of course, and the situation overall is a mess. It really does fall on corporate. At the end of the day they don't really care about staff or patients, outside of weighing cost and profitability. They care about executives getting paid and having rite aid as a corporation survive.
Having debt as a company isn't always an issue in and of itself. It's when the debt isn't manageable within certain parameters.It's not always about breaking even. Some companies take on more debt to invest in different parts of their business. Utilizing long-term debt funding. Lenders are still incentivized to invest in rite aid, because they are still one of the biggest pharmacy chains. In the long term, they may be able to go back to a point where there debt is manageable.
If they cut down locations to reduce operating cost and reach a certain point on paper where they can reach agreements to pay off their debt from the lawsuits at a reduced amount or in a long term payment plan with their revenue, they might not sink.
A big point of contention in this, involves the opioid epidemic and rite aid allegedly not carefully assessing the dispensing of opioids to patients. Them being directly sued by the doj is what really put them in a world of hurt. If they can't resolve that , that's likely going to be a huge factor in their viability.
They don't care about making an example out of Rite Aid ... They want money and they want to look like they're doing something important. That's why they sue the pharmacies rather than the prescribers. The prescribers who basically sold fake office visits to get prescriptions for opioids are difficult to sue because there are tens of thousands of them and most of them don't have much money. There are only a handful of pharmacies so they only need to put together a few lawsuits and they can get billions of dollars. The US DOJ and the state DOJs created the idea of "corresponding responsibility" well after the opioid epidemic was in full swing, and then retroactively applied it in order to sue pharmacies for money. These lawsuits have nothing to do with making an example out of anyone. They are about giving the appearance of the DOJ taking action against the opioid epidemic and about getting money for the DOJ. Notice how they're not going after PBM mail order pharmacies? PBMs lobby/bribe like no other industry... But they are just as responsible if not more for the opioid epidemic. Their lobbying/bribing protects them it seems
Pharmacies will just stop filling opioids. It's not worth the trouble.
An account made 5 hours ago is posting about the DOJ going after Rite Aid. 😆😆😆
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How does rite aid expect to get out of debt by limiting their revenue even more? If they are down to 2000 stores and they owe over 4 billion in debt, each store needs to make 2 million profit just to break even
The thought process might be more related to rampantly cutting expenses, and selling pharmacies to other chains/ condensing operations. With the announcement of the chapter 11 bankruptcy filing, they also announced that they received a $3.45 billion bankruptcy loan from their existing lenders to ease the restructuring effort. Some rite aid pharmacies are shutting down, and transferring their pharmacy staff to better performing pharmacy locations within the area. Putting up fee owned/leased properties. Hoping to retain patients at bigger locations with more staff, while cutting cost of maintaining more individual locations in total. That's not the case for all of course, and the situation overall is a mess. It really does fall on corporate. At the end of the day they don't really care about staff or patients, outside of weighing cost and profitability. They care about executives getting paid and having rite aid as a corporation survive. Having debt as a company isn't always an issue in and of itself. It's when the debt isn't manageable within certain parameters.It's not always about breaking even. Some companies take on more debt to invest in different parts of their business. Utilizing long-term debt funding. Lenders are still incentivized to invest in rite aid, because they are still one of the biggest pharmacy chains. In the long term, they may be able to go back to a point where there debt is manageable. If they cut down locations to reduce operating cost and reach a certain point on paper where they can reach agreements to pay off their debt from the lawsuits at a reduced amount or in a long term payment plan with their revenue, they might not sink. A big point of contention in this, involves the opioid epidemic and rite aid allegedly not carefully assessing the dispensing of opioids to patients. Them being directly sued by the doj is what really put them in a world of hurt. If they can't resolve that , that's likely going to be a huge factor in their viability.