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Local businessman concerned over state cuts

By Vinde Wells


A local business is feeling the pinch of the state’s budget woes.

Marc Mongan, owner of Oregon Healthcare Pharmacy, voiced his concerns to State Sen. Tim Bivins (R-Dixon) during a tour of his business at 1100 Pines Rd., Oregon.

“Current reimbursement [from the state] is lower than our costs. And there’s talk of cutting it further,” Mongan said. 

He explained that his business mainly depends on reimbursements from Medicare and Medicaid.

Mongan’s business is a long term care pharmacy which differs from a retail pharmacy.

He supplies prescription drugs to skilled and intermediate care facilities, assisted living facilities, group home, hospices, and other institutional settings.

Forty people are employed at his business to package and deliver prescriptions to facilities all over northwest Illinois.

He serves 2,000 beds and has contracts with places like the Ogle County Jail, Pinecrest Community, and Serenity Hospice & Home, to list just a few.

His services include specialized packaging, delivery, custom compounding, and billing.

Mongan explained that his costs are higher than a retail pharmacy’s because of the services he provides.

Melissa Schakowsky, a representative of the Illinois Association of Long Term Care Pharmacies, told Bivins that the cost to dispense is approximately 25 percent higher for a business like Mongan’s than for a retail pharmacy.

“Our reimbursements have been reduced three times in the last five years,” Mongan said.

Bivins agreed that the state’s situation is dire.

“It’s a time we’ve been warning about for years,” he said. “You can’t keep spending more than you take in.”

Bivins said the state is currently $6 billion behind on its bills. 

He recommended that Mongan and Schakowsky voice their concerns to other state legislators, including State Rep. Tom Demmer (R-Dixon) and State Rep. Brian Stewart (R-Freeport).

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