ADAIR, Iowa — After nearly five decades of serving the community in Adair, Fay Pharmacy will close in one week when the owner retires.

Peter Fay opened the pharmacy in his hometown on January 1, 1978, after purchasing the former Gardiner Drug. He operates the pharmacy with the help of his wife, DeElta — a retired kindergarten teacher — and his daughter, Tiffany, who is also a pharmacist.

“We have so enjoyed serving the community and seeing our many customers, and generations of them actually. That part will be something of a change that’s for sure,” he said.

Their roughly 1,200 patients are being transferred to the Atlantic Hy-Vee Pharmacy, which is about 20 miles west of Adair. Fay originally tried to sell his pharmacy, but later decided to close it when he didn’t have any buyers.

Fay Pharmacy served as a one-stop shop for general shopping as well, for the community. As a result, there is now a closing sale on all of the inventory, as the Fays are hoping to sell as much of it as possible.

Throughout the 48 years as a pharmacy owner, but 51 years in total working in pharmacies, Fay said he has seen several changes to the industry.

He said when he first started, most of his customers paid for their own prescriptions, but he now estimates that roughly 90 percent of his business is paid for by a third party. This has been the cause for pharmacy closures throughout the state in recent years.

According to the Iowa Pharmacy Association, 2024 was a historic year for pharmacy closures, with more than 30. An estimated 955,000 Iowans have been affected by last year’s closures.

Pharmacists across the state have been voicing concern over corrupt practices by Pharmacy Benefit Managers (PBMs). These are the middlemen between pharmacies and insurance companies. They determine the total drug costs for insurers, shape patients’ access to medications, and determine how much pharmacies are paid.

Pharmacies have reported being reimbursed at unfair rates. PBMs often paid pharmacies less money than it costs for the pharmacy to purchase drugs and distribute prescriptions. This was the case for pharmacies in Oskaloosa, Minden, Colfax, and Eagle Grove.

A new law went into effect in July that the Iowa Pharmacy Association championed, saying it would help pharmacy owners.

Fay said he has seen the benefits of the new law, including more fair reimbursements that cover the cost to purchase drugs and even provide some profits for his pharmacy.

Despite the positive outcome of the new legislation, Fay said he ultimately made his decision because it was the best time to retire.

“I guess, age-wise, that was maybe the biggest decision and I’m also healthy enough that I decided at this point in life, it was good to finish up while I am still healthy, while things can be done and I can walk away very happy,” he said.

The store will close for good on September 24, 2025. Fay Pharmacy is located at 400 Audubon Street in Adair.