Senate approves bill letting nonprofit, government hospitals hold retail pharmacy permits with limits

The Arkansas State Senate on Feb. 3 approved Senate Bill 58, a measure to remove a statewide prohibition on tax-exempt, governmental and nonprofit hospitals holding retail pharmacy permits while adding limits intended to address stakeholder concerns.

Sponsor Senator Dismang, who presented an amended version of the bill, said the measure “will remove the current prohibition that we have for tax exempt governmental or nonprofit hospitals from being able to obtain a retail license” and added several restrictions meant to narrow where and when such permits may be used.

The bill allows a hospital that already holds a hospital pharmacy permit to obtain one retail permit. It also permits additional retail permits at a rate of one per 100 beds and restricts those retail outlets to within 250 yards of the hospital campus. The legislation separately allows nonprofit or governmental infusion centers operated by those hospitals to have adjacent retail pharmacy permits, and it authorizes hospitals to open a retail pharmacy in areas that lack pharmacy access according to the state’s network adequacy definition. The bill requires hospitals to allow “patient choice” of pharmacy, mirroring requirements currently in place for nursing homes, and requires the Arkansas State Board of Pharmacy (referred to in debate as the ALC) to report at each meeting on permits issued and closures.

Senator Boyd, who identified himself as a licensed pharmacist and disclosed pharmacy ownership interests before speaking, urged support after the sponsor amended the measure to address pharmacy association concerns. “Please join me today in voting for this bill,” Boyd said.

Senate roll call recorded 34 yeas, 0 nays and 1 present. By that tally, SB58 passed and will be transmitted to the House.

The bill was described on the floor as an effort to increase access, especially in rural areas and specialized treatment settings such as cancer infusion centers, while incorporating conditions suggested by the Arkansas Pharmacists Association. The sponsor said the state is currently the only one with a prohibition on such hospital retail permits and framed the measure as a compromise to expand access while safeguarding patient choice.

Next steps: With Senate passage, SB58 will be transmitted to the House for further consideration. The text adopted on the floor included amendments the sponsor described as responsive to industry concerns; proponents said the ALC will adopt implementing rules to enforce permit conditions.

Votes at the bill’s consideration and final passage are recorded in the legislative journal and on the Senate roll call for Feb. 3.