CVS warned it would shut all 134 of its Tennessee retail pharmacies and 25 in-store Minute Clinics if the proposed law mandating separation of PBM and pharmacy ownership takes effect. These closures would impact more than 2,000 colleagues and the 1.5 million patients served by its Tennessee locations.

State Sen. Bobby Harshbarger’s bill bars companies from owning both a pharmacy benefit manager and retail pharmacies, aiming to eliminate what he calls a structural conflict in the pharmacy market. The measure has cleared the Senate health committee and the House insurance subcommittee and must still advance through both full legislative chambers.

Over 2,000 jobs are at risk if CVS shutters its Tennessee network, and communities could lose primary care access previously provided through its Minute Clinics. The closures would disrupt prescription distribution and routine health services across urban and rural areas.

CVS said it remains open to divesting either its PBM or its pharmacies to comply with the law but criticized the bill for not addressing issues like spread pricing or reimbursement. The company warned that forced closures would undermine healthcare access and economic stability for Tennessee patients and employees.