By 2024, 900 CVS Pharmacy locations will be closed.
Herald of Grand Forks reports that while 900 CVS Pharmacy locations will be closed nationwide by 2024, North Dakota probable you will not see any closures. Why? Well, there’s actually a big reason the North Dakota locations are probably safe from closure. It involves a unique North Dakota law that allows CVS Pharmacy to be the only major national pharmacy chain in the state.
A 1963 law requires pharmacies to be 51% owned by pharmacists.
Ever wonder why there are no pharmacies in North Dakota Walmarts and Targets? It is due to a 1963 law that requires pharmacies to be 51% owned by pharmacists. So how can CVS operate as a pharmacy in the state? This is because the company bought another pharmaceutical company that was established before the law went into effect.
It’s smart business for CVS Pharmacy to keep all North Dakota locations open.
According to Herald of Grand ForksCVS Pharmacy is able to operate in North Dakota because the former Osco Drug was established in the state before the Pharmacy Ownership Act was enacted. That means CVS Pharmacy definitely has an edge over major retailers who can’t open pharmacies in the state. It is actually a wise business move for CVS to keep all six North Dakota locations as they have no major retail competitors.
Should stores like Walmart and Target be allowed to have pharmacies?
Walmart has reportedly tried to fight the law, but North Dakotans want the pharmacy law to remain in effect. It could be argued that allowing major retailers to operate pharmacies would lower the cost of prescription drugs. However, North Dakota already ranks 13th out of the 25 states with the lowest pharmacy costs. But, you know, that great competition could reduce the costs of customers’ prescriptions.
Do you think North Dakota should keep or repeal its pharmacy law?
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