The U.S. pharmacy industry is crumbling. Here’s how to fix it.

Canby Drug & Gifts, a pharmacy in rural Minnesota, is a paradox. It does good business, yet it is always on the verge of shutting down. “I’m one bad contract from closing,” says owner Mark Whittier. His drugstore, one of a few in his county of more than 9,000 people, exemplifies the struggle many independent pharmacies face. The store is a lifeline for customers, most of whom are either on Medicaid or the state’s health-insurance program. Yet profitability is now near-impossible because of the preposterous way the United States distributes pharmaceutical drugs.