The City Council on Tuesday night unanimously approved setting up a pharmacy for city employees, though two council members said they had concerns about competing with private firms.
Dan Johnson, the mayor's chief of staff, said the in-house pharmacy is projected to save the city $8.6 million over five years.
And he said two private firms are involved in the operation.
The city pharmacy, hailed as one of the first for a city government in the country, will be operated by Benefit Advocate, of Gainesville, Ga.
The pharmacy will be stationed with the Care Here health clinic for city workers on 10th Street near City Hall.
Mr. Johnson said it will only be an apothecary and not have other items carried by drug stores.
He said city employees will be free to continue to use regular drug stores, though they will save with the in-house pharmacy.
Donna Kelley, city personnel director, pushed for the arrangement, saying it is the coming thing for cash-strapped governments. She said, "We can lead or we can follow on this idea."
Council members Jack Benson and Sally Robinson expressed concerns about competing with private drugstores. Mr. Johnson said there are hardly any locally-owned drugstores left.
Councilwoman Carol Berz said, "I'm sold on this. I think it's a great idea. It's a way to spend less money for drugs than we are already spending, deliver quality service, and make our people healthier."
She said the Gainesville, Ga., firm has been getting inquiries from around the country from other cities wanting to get in on the idea.
The pharmacy would be open to city employees, retirees and dependents.
It is to carry brand name drugs as well as generics. Officials said it will not be imported drugs, but "the same kind sold in other pharmacies."
It is hoped to have the pharmacy open prior to the holidays.