Retail pharmacies at Erlanger Health System are being sold to CVS for $10 million, officials said.
The retail drug stores at Erlanger North in Red Bank and Erlanger East on Gunbarrel Road will close. Erlanger President Kevin Spiegel noted that CVS has its own pharmacies nearby those facilities.
CVS will operate a pharmacy at the Medical Mall on the main Erlanger campus on Third Street. The pharmacy at the Dodson Avenue Clinic will remain open.
The sale is between CVS and Continucare, an Erlanger subsidiary, with Erlanger as a third party.
Britt Tabor, Erlanger finance director, said $8.5 million will go to Continucare, $500,000 to Erlanger and $1 million for inventory.
Mr. Tabor said one benefit is that the Erlanger employee discount will be honored at the CVS on Highway 153, at Fort Oglethorpe, on Gunbarrel Road, at the Medical Mall and at Dodson Avenue. The Highway 153 and Fort Oglethorpe stores are open 24/7.
He said Erlanger will realize up to $5.5 million each year in savings through the 340B federal program that requires drug manufacturers to provide outpatient drugs to eligible health care organizations and covered entities at significantly reduced prices.
Mr. Spiegel said, "An upside is the strategic alliance Erlanger will form with CVS."
Officials noted that CVS has significantly stronger buying power with drug manufacturers than does the hospital system.