A difficult business environment for pharmacies and the new Oregon Gross Receipts Tax, passed last year and made effective Jan. 1 of this year, which taxes businesses on their gross receipts, whether or not they make a profit, has forced the decision to close McCann’s Pharmacy after doing business in King City for 46 years.
On October 29th & 30th, from 11:00 a.m. to 3:00 p.m., the Store will hold their final Holiday Open House, and the store will remain open to close out their front-of-store items.
The following is a letter from Mathew McCann, owner:
Thank you!
McCann’s Pharmacy and Medical are part of the community and we have enjoyed 46 years serving our family and friends. Our patients and customers are the reason we have stayed in King city. That is why it is the hardest decision of my professional life. We have decided to close our store and focus on the medical equipment going forward.
The last few years, including our challenging current year 2020, we have been impacted by several factors. One factor is the reduction in reimbursement from the insurance companies to fill your prescriptions. Hidden DIR fees and reduced reimbursement occasionally will end up losing money on a prescription. The final factor came this year when I was building out our new space to move into. We were hit with the new Oregon Gross Receipts Tax. This was passed by our legislature last year. This new tax is based on our total sales, not our profit. The cost of drugs is so expensive that it cost us over 20k of new tax without generating any profit. This is not a sustainable business any longer.
Your prescriptions will be available for pick up or delivery at the King City Safeway starting October 15th.
Wednesday, October 14th, at 7 pm, we will be closing our pharmacy operations for the last time. The store will stay open to serve our medical equipment customers and close out our front-end items. There will be a final holiday open house sale on October 29th and 30th from 11-3.
My family and staff are so grateful for the 46 years we were honored to serve you. I will miss the buzz and energy that was the center of King City. A meeting place for community and friends. I hope that if the need should arise, you will come see us at the new McCanns Medical in King City.
Sincerely,
Mathew McCann
