Arkansas Proposes Amendments to Restrict Corporate Ownership of Pharmacies
The Arkansas House of Representatives proposed a bill that would amend the Pharmacy Practice Act to restrict pharmacy ownership to certain individuals and entities. The bill would require an applicant for a pharmacy permit to provide proof that the owner is one of the following:
- An Arkansas licensed pharmacist
- A partnership in which each active member is an Arkansas licensed pharmacist
- A corporation or association in which the majority stock is owned by Arkansas licensed pharmacists
- A limited liability company in which the majority membership interests are owned by Arkansas licensed pharmacists who are employed in and responsible for the management, supervision, and operation of the pharmacy
The bill includes certain exemptions including pharmacies that currently hold a permit, institutional pharmacies, and pharmacy chains headquartered in Arkansas. If enacted, this bill will create significant market entry barriers for all nonresident pharmacies and entities and pharmacists not licensed by the Arkansas board.
On March 8, 2023, the bill was referred to the Public Health, Welfare and Labor Committee. The full text of the bill can be found here.
For more information regarding Arkansas's proposed bill and its impact on your business, please contact your Quarles attorney or:
- Brenda Maloney Shafer: (602) 229-5774 / brenda.shafer@quarles.com
- Alex Cooper: (312) 715-2764 / alex.cooper@quarles.com