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MIKE SCHWAB: Pharmacy-ownership law serves North Dakota well

BISMARCK -- Has your mom ever told you that when something sounds too good to be true, it often is? Looking deeper into the possible change of the pharmacy ownership law in North Dakota, I believe that is exactly the case: It is too good to be true.

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Mike Schwab

 

 

BISMARCK - Has your mom ever told you that when something sounds too good to be true, it often is? Looking deeper into the possible change of the pharmacy ownership law in North Dakota, I believe that is exactly the case: It is too good to be true.

To sum up the North Dakota pharmacy ownership law, it simply states that “a pharmacy must be majority owned (51 percent) by a licensed pharmacist.” So, to say that Wal-Mart Stores cannot have a pharmacy in North Dakota is not the truth. Wal-Mart could own up to 49 percent of as many pharmacies as it would like. A pharmacist would carry the majority of the liability, lease the space from Wal-Mart, buy from Wal-Mart (if the company would let them) - and Wal-Mart would get 49 percent of the revenue for basically doing nothing.

Sounds like a pretty good deal, once again, for Wal-Mart.

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The problem is that Wal-Mart is unwilling to work within the current model that exists because they want 100 percent control of all pharmacy operations. Costco, hospitals, Dan’s Super Values and many others all have worked successfully within the current law. So, why can’t the larger players?

The law has been challenged by opposition legally and legislatively multiple times. The North Dakota Supreme Court ruled unanimously that the pharmacy ownership law meets the laws of reasonableness, as a pharmacist should never be subordinated to someone who is not a pharmacist.

Due to the role a pharmacist plays as a health care provider, not just anyone should be allowed to own a pharmacy. Also, please keep in mind that by changing the current law, anyone could own and operate a pharmacy in North Dakota.

Why does North Dakota have similar laws for other professions such as dentists, lawyers, chiropractors and farmers, but pharmacy is being singled out?

In 2008, the Interim Industry, Business and Labor Committee conducted a study of the law and provided no recommendation to change the law. The opposition challenged the law legislatively in 2009 and 2011 by introducing legislation to overturn the law. Both attempts failed by large margins, with Republican and Democratic support to keep the law.

Facts and data were presented showing why the law treats North Dakota and its residents quite well. We were able to dispel the myths and correct the untrue statements made by the opposition relative to price and competition. We were able to show repeatedly that prices in North Dakota consistently are below national and regional averages.

The opposition tried a petition effort back in 2010 only to have it thrown out by the secretary of state’s office because they didn’t follow the state constitution while collecting signatures. They even spent taxpayer money challenging that decision all the way to the North Dakota Supreme Court. That attempt failed miserably.

Again in 2012, the opposition started to collect signatures for another petition effort. They ended up quitting before the deadline because they didn’t have close to enough signatures.

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At hand in 2014, another corporate attack on a law that is more relevant in today’s market than in was when it was passed. It is different this time because the opposition is buying their petition signatures. They have hired out-of-state firms and petition collectors on a massive scale throughout North Dakota.

We do not have the resources or the money to wage an ongoing media and marketing campaign like the opposition will undertake. But we will make sure that we provide North Dakotans with factual information and research that will prove keeping the law in place is in the best interests of the state and its residents.

Stay tuned, as we will be sharing a lot of information with Herald readers and others so you can make an informed decision regarding this very important issue.

We thank the more than 22,000 North Dakotans who have clearly stated, “Keep it local, keep the pharmacist in charge of pharmacy, and do not change the current law.” Those 22,000 signatures supporting the law were gathered in six weeks.

We wish Herald readers many blessings and good health.

Schwab is executive vice president of the North Dakota Pharmacists Association.

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