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Ingham County approves purchase of select Cardinal Health pharmacy assets to bring two clinics’ pharmacies in-house
Summary
The Board authorized acquiring certain assets of Forest Community and Allen Neighborhood Pharmacies from Cardinal Health and a companion management agreement to transition the pharmacies to County-owned operations, with an estimated cost up to $1,000,000 funded from Ryan White restricted funds.
The Ingham County Board of Commissioners authorized the purchase of select assets from Cardinal Health Pharmacy Services, LLC related to the Forest Community and Allen Neighborhood Pharmacies and approved a companion Pharmacy Agreement for transitional management services.
Under the approved structure, the County will purchase prescription files, inventory at acquisition cost, supply items and specified fixtures and equipment. The County will not assume Cardinal Health’s pre-closing liabilities (accounts receivable, DIR fees, payroll, tax liabilities, or pre-closing regulatory liabilities). Cardinal Health will provide transition support and ongoing management services under a companion Pharmacy Agreement while the County assumes ownership and responsibility for pharmacy licensure and 340B eligibility oversight.
Estimated acquisition costs outlined in the resolution include an estimated inventory valuation (~$833,500, final to be determined by third-party valuation), fixtures/equipment for Allen (~$106,500), and a transition fee (~$60,000), with a total not to exceed $1,000,000, to be funded from the Ryan White restricted fund balance. The Board also delegated authority to the Medical Health Officer or designee to sign documents necessary to operate the pharmacies under a temporary power of attorney during the transition period.
The resolution requires County Attorney approval of closing documents and sets the effective management term for the companion pharmacy agreement through May 31, 2029.
