KHN Morning Briefing

Summaries of health policy coverage from major news organizations

Pharmacy Franchises Sue Cardinal Health

The Associated Press/The Seattle Times: "Medicine Shoppe and Medicap pharmacists in seven states sued Cardinal Health in federal court Tuesday, alleging the health care products distributor failed to make good on promises it made when it asked them to switch to a new franchise agreement. The lawsuit filed in U.S. District Court says franchise holders who agreed to the change offered in March 2009 are paying lower fees than others, while all are getting fewer supports and services from the Cardinal-owned Medicine Shoppe International Inc. and Medicap Pharmacies Inc. It says many who have the lower fees were charged 'grossly unfair' penalties to switch from their old agreements. Pharmacists want a return of penalties paid and for all franchisees to be charged the lower fees or be allowed to cancel their franchise agreements, said St. Louis attorney David Harris, who represents the pharmacists" (Viviano, 3/9). This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.