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Is there a principal-agent problem between large retail-chain pharmacy corporations and community pharmacists?
None:
Misalignment of incentives between large retail-chain pharmacy corporations and community pharmacists may explain inefficiencies in the community pharmacy retail market. I apply the principal-agent problem framework to explain how these misalignments of incentives can lead to unsafe working conditions, increase medication errors, burnout and retention issues with community pharmacists, and financial instability on firms. The first part of the article describes the misalignment of incentives between the large retail-chain pharmacy corporations and community pharmacists followed by a comparison of the market value of the three major retail-chain pharmacy corporations and their association with community pharmacists' salaries and concludes with recommendations to address this principal-agent problem.
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