CVS Sues Tennessee to Block Law Threatening Closure of 136 Pharmacies
CVS•CVS filed a federal lawsuit May 22 in Nashville contesting Tennessee’s law that bars companies from owning both pharmacy benefit managers and retail pharmacies and would force closure of its 136 Tennessee pharmacy locations. The law, effective July 1, 2028, imperils services to 1.5 million local patients.
1. Legal Challenge Filed
On May 22, CVS initiated a lawsuit in U.S. District Court in Nashville seeking to block Tennessee’s new statute. The complaint names the Tennessee Board of Pharmacy, the state attorney general and ten board officials as defendants and asks the court to halt implementation of the law.
2. Law Provisions and Timeline
The legislation prohibits any entity from owning both a pharmacy benefit manager and a retail pharmacy, a provision set to take effect on July 1, 2028. Companies found in violation would be required to divest or close affected pharmacy locations within the state.
3. Potential Impact on CVS Operations
CVS operates 134 retail and 2 specialty pharmacy locations in Tennessee, employing over 2,000 staff and serving 1.5 million patients. The company warns that enforcement would force closure of all 136 sites, disrupting care for patients with chronic and complex conditions.
4. Broader Regulatory Context
The Tennessee measure mirrors a bipartisan federal bill reintroduced this month that would bar PBM owners from also owning pharmacies. Heightened scrutiny of PBMs nationwide is driving similar proposals in other states and at the federal level.
