Community Pharmacies in the City Area: Evidence from an Italian Province

Pharmacy opening and pharmacy location are heavily regulated in Italy. This paper investigates how pharmacies are positioned in the city area and analyses the role of some factors relevant for gaining access to pharmacy services and competition. For this purpose, a probit regression model has been estimated. A main finding is that the spread of pharmacies all over the city area is unbalanced. The number of residents in the surroundings is not a main determinant of location. In spite of the availability of competing outlets nearby, pharmacies tend to be situated in areas attracting visitors as part of the working and travel circuits. This contributes to good access to the extent to which consumers can easily get to the pharmacy from the doctor's office as well as from work or shopping. However, while multiple outlets are available in the areas offering better business opportunities, the other parts of the municipal district are often unsupplied. As a result, accessibility within the city area is not the same for all residents. Several aspects of the overall pharmacy market regulation prove unsuited for opposing this pattern of location.