Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 94th General Assembly A Bill
3 Regular Session, 2023 HOUSE BILL 1300
4
5 By: Representative L. Johnson
6
7 For An Act To Be Entitled
8 AN ACT TO AMEND THE PROHIBITION ON NONPROFIT, TAX
9 EXEMPT, OR GOVERNMENTALLY-FUNDED HOSPITALS FROM
10 HOLDING A LICENSED PHARMACY PERMIT FOR THE SALE AT
11 RETAIL OF DRUGS; TO SET RESTRICTIONS ON PHARMACY
12 CONTRACTING AND CONFLICTS OF INTEREST; AND FOR OTHER
13 PURPOSES.
14
15
16 Subtitle
17 TO AMEND THE PROHIBITION ON NONPROFIT,
18 TAX EXEMPT, OR GOVERNMENTALLY-FUNDED
19 HOSPITALS FROM HOLDING A LICENSED
20 PHARMACY PERMIT FOR THE SALE AT RETAIL OF
21 DRUGS.
22
23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
25
26 SECTION 1. Arkansas Code § 17-92-607 is amended to read as follows:
27 17-92-607. Unlawful for hospital to hold licensed pharmacy permit —
28 Exceptions Hospital holding a retail pharmacy permit.
29 (a)(1) It shall be unlawful for any nonprofit, tax exempt, or
30 governmentally funded a hospital to acquire direct or indirect interest in or
31 otherwise hold directly or indirectly a more than one (1) licensed pharmacy
32 permit pursuant to the provisions of § 17-92-405, for the sale at retail of
33 drugs and medicines.
34 (2) A healthcare organization licensed as a hospital may hold
35 one (1) retail pharmacy permit at each location licensed as a hospital.
36 (b) However, nothing contained in this section shall be construed to
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1 prohibit any hospital having a direct or indirect interest in or otherwise
2 holding either directly or indirectly a permit before March 28, 1975, from
3 continuing to have an interest in or holding the permit. Nothing contained in
4 this section shall be construed to prohibit any hospital so holding a permit
5 before March 28, 1975, from receiving a renewal of the permit.
6 (b)(1) A hospital that only provides inpatient services and emergency
7 medical care that has a minimum average daily inpatient census of twenty-five
8 (25) patients is eligible under subsection (a) of this section for a retail
9 pharmacy permit.
10 (2) A hospital that does not meet the description in subdivision
11 (b)(1) of this section is not eligible for a retail pharmacy permit under
12 § 17-92-405 for the sale at retail of drugs and medicines.
13 (c) A retail pharmacy permit for a hospital shall be:
14 (1) On the campus of the hospital that offers emergency medical
15 care services; and
16 (2) Within two hundred fifty yards (250 yds.) of the facility
17 that is licensed as a hospital.
18 (d) The retail pharmacy permit may be at the physical location of the
19 current hospital pharmacy.
20 (e) A healthcare organization that has a retail pharmacy permit under
21 this section shall provide an option for access to emergency medications
22 twenty-four (24) hours per day and seven (7) days per week, according to
23 organizational policy.
24 (f) A hospital is not eligible to apply for a retail pharmacy permit
25 if an existing retail pharmacy:
26 (1) Is currently located on a hospital's physical campus or
27 within two hundred fifty (250) yards of the hospital's physical campus; and
28 (2) Provides an option for access to emergency
29 medications twenty-four (24) hours per day and seven (7) days per week,
30 according to the pharmacy’s organizational policy.
31
32 SECTION 2. Arkansas Code Title 17, Chapter 92, Subchapter 4, is
33 amended to add an additional section to read as follows:
34 17-92-414. Prohibition of pharmacy contracting - Conflicts of interest
35 – Pharmacy permit holder responsibilities.
36 (a) As used in this section, “parent entity” means a person, company,
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1 or other entity that has a direct or indirect interest or ownership in a
2 licensed pharmacy permit for the sale at retail of drugs and medicines.
3 (b) A holder of a pharmacy permit for the sale at retail of drugs and
4 medicines shall not enter into a contract with a parent entity that does any
5 of the following:
6 (1) Financially incentivizes a patient or plan beneficiaries to
7 obtain a pharmacist's services from the pharmacy with terms that are not
8 offered equally at other network pharmacies;
9 (2) Provides the pharmacy a reimbursement amount that is higher
10 than rates paid to other pharmacies in the state;
11 (3) Allows the pharmacy to be a limited provider of pharmacist's
12 services through the use of a network design that limits the number of
13 providers in said network;
14 (4) Limits a patient’s freedom of choice through financial
15 incentives; or
16 (5) Does any other activity that is deemed to create an
17 anticompetitive advantage or interferes with patient freedom of choice as
18 determined by the Arkansas State Board of Pharmacy.
19 (c)(1) Upon receiving a complaint involving a violation of subsection
20 (b) of this section, the board shall investigate the complaint and schedule a
21 hearing within thirty (30) business days.
22 (2) Upon a finding of fact by the board that a violation
23 of this section has occurred, the board shall immediately terminate the
24 pharmacy permit of the entity that perpetrated the violation.
25 (d) A violation of this section is also a violation of the Unfair
26 Practices Act, § 4-75-201 et seq.
27 (e) Market-based cash pricing of a drug or medication is not a
28 financial incentive under this section.
29 (f) An entity that owns pharmacies and offers prospective cash savings
30 plans through the 340B Drug Pricing Program shall allow other network
31 pharmacies to participate in the prospective cash savings plan.
32 (g) The board shall review for any violation of this section during
33 the inspections conducted by the board.
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Statutes affected: HB 1300: 17-92-607, 17-92-405