One of the biggest causes of pharmacy cash flow issues is inventory. Cash flow is all about cash in, cash out, and having cash on hand when you need to cover costs. As a cash flow problem, inventory cuts both ways.
One of the biggest controversies in the pharmaceutical industry is around PBMs. PBMs (short for Pharmacy Benefits Managers) are purchasing organizations that act as middlemen between pharmacies and drug companies. They purchase the drugs in large quantities and supply them to individual pharmacies, similar to wholesalers in most industries.