After almost 100 years of operation, Lowe’s Drug closed its East Broadway location last month to consolidate with City Drugs on Lamar Alexander Parkway.
“There were a number of factors that came into play,” explained Mac’s Hometown Pharmacies CEO Morgan Hunnicutt. “One of the biggest factors was the battle against Pharmacy Benefit Managers (PBMs)” like Caremark, which owns CVS.
Hunnicutt described how independent pharmacies in Tennessee are required by insurance company contracts to dispense medications at less than cost, while large Pharmacy Benefit Manager-owned pharmacies were shown to reimburse themselves at rates as high as 16,500% above cost, according to a 2026 Tennessee Department of Commerce and Insurance investigation.
Tennessee legislators are considering HB1959/SB2040 that if passed would prohibit the licensure of a pharmacy in which a PBM has an ownership or beneficial interest, eliminating self‑dealing and preferential treatment.
To survive economic pressures, however, Hunnicutt said they were forced to look at ways to provide pharmacy services more efficiently.
While both Lowe’s and City Drugs are owned by Knoxville-based Mac’s Hometown Pharmacies, Hunnicutt said it made more sense to keep the location with a drive-thru window and close proximity to the hospital.
“We did not lay off any staff and increased delivery availability,” he added. Currently, there are two pharmacists, six technicians and several part-time employees.
“It hurt really bad to close Lowe’s Drug,” Hunnicutt admitted. “Our goal is now for City Drugs to be that trusted source of people’s day-to-day needs as far as pharmacy service goes, ease of access, and be able to really serve the Blount County area.”
Mac’s Pharmacies is a privately held company that has operated since 1989 and has five locations in Knoxville, Maryville, Oak Ridge and Townsend, as well as one location in Gulf Breeze, Florida.
