Can a non pharmacist own a pharmacy? In the US, with the exception of North Dakota, anybody including non pharmacists can own a pharmacy. This is what makes pharmacy ownership possible for the big
Owning a pharmacy, as challenging as it may sound, can be a very profitable and rewarding venture depending on your location and several other factors.
Can a non pharmacist own a pharmacy? In the US, with the exception of North Dakota, anybody including non pharmacists can own a pharmacy. This is what makes pharmacy ownership possible for the big corporations like CVS and Walgreens in those other states.
How Is North Dakota Pharmacy Ownership Different?
According to North Dakota’s pharmacy ownership laws Every store, dispensary, pharmacy, laboratory, or office, selling, dispensing, or compounding drugs, medicines, or chemicals, or compounding or dispensing prescriptions of medical practitioners in the state, and every business carried on under a name which contains the words “drugs”, “drugstore”, or “pharmacy”, or which is described or referred to in such terms by advertisements, circulars, posters, signs, or otherwise, must be in charge of a registered pharmacist.
For corporations to own a pharmacy in North Dakota, the majority of the stock holders must be pharmacists. While I happen to be a pharmacist and own a minuscule amount of stock in CVS, I can safely bet that pharmacists do not constitute the majority stock holders in CVS and the other big chains.
Yes, as hard to believe as it sounds, with the exception of about 20 or so chains which were grandfathered when the law was passed in 1963, North Dakota has no other chain drug stores within its borders.
The chains happen to only operate their front stores in North Dakota.
Challenges To North Dakota Pharmacy Ownership Law
Several unsuccessful attempts have been made over the years to repeal this law including a 1974 Supreme Court ruling. In that case, Snyder’s Drug was denied a permit to operate a pharmacy in 1971 as it did not meet the requirement of majority shareholders being pharmacists.
The case went through the court systems, finally landing in the Supreme Court. The Supreme Court ruled to uphold the existing law which required majority share holders of corporations seeking to own a pharmacy to be registered pharmacists. Details of the ruling can be found here.
More recently, in a 2014 election, Measure 7 as it was called, was on the ballot. Measure 7, if it had passed would have allowed chain pharmacies to start doing regular business in North Dakota. Measure 7, which was widely believed to be sponsored by Walmart, was handily defeated by about 60% of the vote.
Pharmacy Ownership Requirements For The Other States
As is evident from the presence of several chain pharmacies in the other states, pharmacy ownership is not restricted to only pharmacists. For example, according to California Law, a pharmacy licence may be issued to an individual, a firm, association, partnership, corporation, limited liability company, state government agency, trust, or political subdivision.
Of course, granted these individuals can raise the capital or more importantly, meet all the stringent requirements required to be approved for a pharmacy license. These requirements may also vary from state to state.
How Non Pharmacist Owned Pharmacies Work
Owning the pharmacy is one thing, while operating it is another. All the states have laws that require a pharmacist to be present anytime a pharmacy is open for business.
The actual day to day activities for the most part will be determined by a pharmacist-in-charge or pharmacy manager. In the eyes of the state or jurisdiction granting the pharmacy license, the pharmacist-in-charge is the point person and responsible for ensuring adherence to all state laws and regulations.
As a matter of fact, a non pharmacist owner of a pharmacy is not permitted to access the pharmacy in the absence of a pharmacist.
Most states, if not all, have laws that stipulate that the pharmacy should be locked and alarmed if the pharmacist on duty leaves the premises.
Conclusion
In conclusion, pharmacy ownership is a huge investment, albeit potentially very profitable, and I highly recommend doing your homework very well before taking the plunge.