The Oregon Health Authority will hold a virtual public hearing this month on a proposed merger between Kroger and Albertsons, part of a review into how it will affect Oregonians’ access to pharmacy services.
State health officials have assembled a community review board to help assess how the proposed sale of Albertsons and Safeway to the supermarket giant Kroger, which owns Fred Meyer and QFC, could impact more than 150 pharmacies across the state. The two grocers announced their plans to merge in October 2022.
The hearing, scheduled for 1 p.m. on April 24, will include representatives from both Kroger and Albertsons, according to the health authority, as well as time for public comment on the deal.
The Oregon Health Authority’s regulatory review is part of the state’s new Health Care Market Oversight program, which the Oregon Legislature created in 2021 to review business deals involving health care operations like pharmacies. The agency can either approve the transaction as proposed, approve Kroger and Albertsons’ proposed deal with specific conditions, or disapprove it entirely.
The health authority says it has the power to block the transaction, at least as it regards pharmacies in Oregon.
Kroger’s Fred Meyer banner operates 53 retail pharmacies in the state, while Albertsons and its Safeway stores operate 106. Combined, they represent about 11% of the state’s retail pharmacies and, according to a state analysis, approximately 34% of retail prescriptions.
Kroger has said that no pharmacies will be closed, including those that would be sold as part of a divestiture plan.
The proposed merger comes as many Oregonians are already losing access to neighborhood pharmacies. In November, Rite Aid filed for bankruptcy and has already closed more than a dozen stores in Oregon. CVS and Walgreens are closing stores, too, as they cope with their own financial issues. And in 2021, Bi-Mart stopped its pharmacy services.
Oregon joined the Federal Trade Commission and several other states in a lawsuit on Feb. 21 to block Kroger’s bid to buy out its next biggest rival Albertsons, arguing that it would hurt competition and workers.
Those who would like to attend the virtual hearing can register here. Public comments about the Kroger-Albertsons proposed merger can also be submitted by email to hcmo.info@oha.oregon.gov with the word “Kroger” on the subject line.
--Kristine de Leon covers the retail industry, small business and data stories. Reach her at kdeleon@oregonian.com
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