Mike Ross
Encyclopedia
Michael Avery “Mike” Ross (born August 2, 1961) is the U.S. Representative
for . He is a member of the Democratic Party
. Ross is currently the dean of the Arkansas congressional delegation, or its most senior member. Ross stated on July 25, 2011, that he would not seek re-election to the House in 2012.
, the son of two public school educators, and he graduated high school in Hope, Arkansas
. He was educated at the University of Arkansas at Little Rock
, working his way through college as a local radio announcer. Together with his wife, Ross owned and operated a small pharmacy in Prescott, Arkansas
, which they sold in May 2007. The Ross family has two children and attend the First United Methodist Church of Prescott.
Ross also served as Chief of Staff to then-Lieutenant Governor Winston Bryant
from 1985 to 1989.
Ross is a Co-Chair of the fiscally conservative, Democratic Blue Dog Coalition, Co-Chair of the Congressional Sportsmen's Caucus, President of the Mississippi Valley Flood Control Association and Vice President of the NATO Parliamentary Assembly
.
Ross is against gun control
and is one of the few Democratic members of Congress to consistently earn an A+ rating from the National Rife Association's Political Victory Fund.
Ross considered running for the position of Democratic Caucus Vice Chairman for the 110th Congress; however, he deferred to incumbent John Larson
after Rahm Emanuel
chose to run for caucus chair, which is the position for which Larson had been running.
Disclosure Report, which every candidate must file quarterly, eight percent (8%) of his total campaign contributions have come from the health care industry in the last election cycle (2007-8).
Ross was thrust into the national spotlight on July 21 when he and a group of seven Blue Dog Democrats on Energy & Commerce bucked their party's leaders and brought the committee mark up process of H.R. 3200, America’s Affordable Health Choices Act of 2009, to a halt. House Energy and Commerce Committee Chairman Henry Waxman postponed meeting publicly to discuss the health-care legislation to negotiate with the Blue Dogs, meeting privately with Ross and other members of the so-called Blue Dog Coalition, conservative Democrats who sit on the committee and could join Republicans and vote down a bill they don't like since the panel has 36 Democrats and 23 Republicans.
After days of back-to-back meetings and intense negotiations into the night, four of the seven Blue Dog Democrats on the House Energy and Commerce Committee, led by Ross, said they resolved their differences with Chairman Henry Waxman of California and were able to force House leadership to agree on several provisions, namely that the full House would not vote on the legislation until at least September so lawmakers would have time to read the bill and listen to constituents.
Other concessions won by Blue Dogs, which drew immediate opposition from liberals in the chamber, would shave about 10 percent from the health care overhaul's $1 trillion, 10-year price tag, in part by limiting subsidies to people who are not insured. The exemption for small businesses would be doubled so that only businesses with payrolls greater than $500,000 a year would be required to offer insurance or pay a tax equivalent to 8 percent of their payroll.
Because many Blue Dogs, especially Ross, had serious concerns about the bill's potential harmful affects on rural doctors and rural hospitals, the group forced House leadership to accept that the government would negotiate rates with health care providers instead of using Medicare rates in any so-called public option.
President Obama praised the efforts of the Blue Dog Coalition in a statement issued after the agreement was announced: “I'm especially grateful that so many members, including some Blue Dogs on the Energy and Commerce Committee, are working so hard to find common ground. Those efforts are extraordinarily constructive in strengthening this legislation and bringing down its cost,” the President said in a statement.
However, some of the concessions to Ross set off a revolt among members of the Congressional Progressive Caucus
, who said they feared that the public insurance plan was being weakened. “We do not support this,” said Representative Lynn Woolsey
, Democrat of California, co-chairwoman of the progressive caucus. "It’s a nonstarter."
After Congress' August recess, Ross announced that he could not support a bill with a Public Option. In a letter to constituents, he claimed that "An overwhelming number of you oppose a government-run health insurance option, and it is your feedback that has led me to oppose the public option as well." However, a Research 2000 poll, commissioned by the left-leaning group Daily Kos, found that a majority of his district actually supported a Public Option. While a poll from the University of Arkansas only found support for the public option at 39 percent. Ross ultimately voted against the Health Care Reform bill that passed the House on November 7, 2009 In January 2011, Ross was one of 3 Democrats to vote with the unified Republican caucus for the repeal of the recent health care reform law.
In 2011, he co-sponsored HR 3, the No Taxpayer Funding for Abortion Act. The bill contained an exception for "forcible rape," which opponents criticized as potentially excluding drug-facilitated rape, date rape, and other forms of rape. The bill also allowed an exception for minors who are victims of incest.
in 2000 by portraying himself as a moderate, like the political tendencies of his district. In contrast, Dickey was seen as a controversial conservative because of his comments on stem cell research and homosexuality. Ross was the only Democrat outside of California
to defeat a Republican
incumbent.
Ross easily defeated Dickey in a 2002 rematch, then ran unopposed in 2004
. He picked up an easy victory in the 2006 election, defeating the similarly named Republican, real estate executive Joe Ross, 75 percent-25 percent.
During the 2008 presidential campaign, like most Arkansas Democrats, Ross endorsed former U.S. Senator and former First Lady of Arkansas Hillary Rodham Clinton
(D-New York
) for President.
On July 25, 2011, Ross announced that he would retire from Congress at the end of 2012. As for possibly running for Governor of Arkansas in 2014, he said "Whether I run for Governor in 2014 is a decision I have not yet made and won't make until sometime after my term in this Congress ends. But I do know if I was re-elected to the U.S. Congress next year, my term in the Congress would overlap with the Governor's race. I believe it would be impossible to successfully run for Governor here at home, while effectively carrying out my congressional duties in Washington.
and the The Politico
reported that in 2007, Ross was paid $420,000 for the building and lot of his family pharmacy in Prescott, Arkansas
by USA Drug
, a Pine Bluff, Arkansas
-based pharmacy chain. The property had been assessed in 2007 by the county at $263,000; an independent appraiser hired by ProPublica put the 2009 value of the property at $198,000, although it was well into an economic recession that began in 2008.
USA Drug also paid roughly $1.2 million for related assets of the property, such as stock, and paid roughly $100,000 for a non-compete agreement. As of the date of the report, Holly Ross remained the pharmacist at Holly's Health Mart under USA Drug.
Additionally, USA Drug owner Stephen L. LaFrance donated $2,300, the maximum contribution allowed, to Ross' campaign two weeks after the sale was made. In two previous elections, LaFrance had supported Ross' opponent Jay Dickey, a close friend of LaFrance.
Following up on the story, the Arkansas Democrat Gazette reported shortly thereafter on September 23 that, “Richard Jackson, a professor of pharmacy administration at Mercer University in Atlanta and an expert in evaluating the worth of pharmacies, said the price tag for the pharmacy’s assets was ‘well within the ballpark’ of what similar pharmacies in similar communities would bring.”
The same article continued saying that Jackson agreed that the keys for the buyer of a pharmacy are those assets — such as the inventory, the fixtures and the “good will” the business has established in the community, an intangible asset “with significant value especially in a rural area.”
It quoted Jackson as saying that the price the Rosses received for the pharmacy’s assets — between $500,000 and $1 million — is “very average” and that “there’s nothing unusual about that whatsoever. I value pharmacies every day, and most are going to fall within that range.” He also commented on the noncompete agreement – standard in pharmacy sales – saying that “people come to that pharmacy not because of the bricks and mortar, but because of the pharmacist. There is a distinct and significant value to that pharmacist being there.”
That same article continued saying, “Scott Pace of the Arkansas Pharmacists Association echoed Jackson, noting that the sale of any pharmacy’s assets would take into consideration a number of factors in addition to the value of the real estate. He provided data from the National Community Pharmacists Association showing that the average independent community pharmacy had $3.6 million in sales in calendar year 2007, with an average inventory of more than $298,000.”
On September 25, the Arkansas Democrat Gazette reported that the only other pharmacy owner in Prescott — Ross’ former political and business rival — said the deal seemed fair. All Care pharmacy owner state Sen. Percy Malone was reported to say, “I would have bought it for that." In 1992, Malone and Ross ran a spirited Democratic primary campaign against each other for the state Senate, the Democrat Gazette reported. Malone said he “didn’t see anything out of line” in the price USA Drug paid and added that since there were only two drugstores in the town of 3,686 people, the price would likely be higher than the property’s assessed value.
The same article interviewed other pharmacy owners in Arkansas who have in recent years have had similar business transactions, such as David Smith who sold Central Pharmacy in Conway to Cardinal Health Care in 2006. Cardinal subsequently sold it to the Medicine Shoppe. Smith, who manages the pharmacy said that he received at least $50,000 in a noncompete agreement that stipulated that he couldn’t work for another pharmacy within five miles (8 km) for a threeyear period. Holly and Mike Ross received $110,000, but their noncompete agreement came with much more stringent terms. They agreed not to work for a competitor within 20 miles (32.2 km) for a period of 10 years. Smith said USA Drug “got an incredible deal." That’s because, Smith said, to a great extent a pharmacy’s value is tied up in the pharmacist himself. “The store revolves around the store owner or pharmacist,” he said. “That’s the face people trust.” To illustrate how important the noncompete agreement is, he said it was a “huge” deal that LaFrance hasn’t switched signs on the front of Holly’s Health Mart. “It’s a very shrewd move on his part to have retained that name,” he said.
The same article stated that it’s also common for a pharmacy chain to pay higher than assessed property values when acquiring land and buildings. Larger chains have paid premiums for land in smaller Arkansas towns in recent years it reported. For instance, Walgreen Co., the Illinois-based drug giant, purchased 2.8 acres (11,331.2 m²) and a building in Wynne in 2007 for $650,000. The current value of the land, according to the Cross County assessor’s office is $145,800. The same year, the chain bought an empty 1.3 acres (5,260.9 m²) plot in Newport for $560,000. In 2008, the Jackson County assessor pegged the land’s value at $35,900. And in 2008, according to Garland County records, Walgreen paid $990,000 for 1.8 acres (7,284.3 m²) and a building that was listed with a $282,650 value.
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
for . He is a member of the Democratic Party
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
. Ross is currently the dean of the Arkansas congressional delegation, or its most senior member. Ross stated on July 25, 2011, that he would not seek re-election to the House in 2012.
Early life, education and career
Ross was born in Texarkana, ArkansasTexarkana, Arkansas
As of the census of 2000, there were 26,448 people, 10,384 households, and 7,040 families residing in the city. The population density was 830.5 people per square mile . There were 11,721 housing units at an average density of 368.1 per square mile...
, the son of two public school educators, and he graduated high school in Hope, Arkansas
Hope, Arkansas
Hope is a small city in Hempstead County, Arkansas, United States. According to 2008 United States Census Bureau estimates, the population of the city was 10,378...
. He was educated at the University of Arkansas at Little Rock
University of Arkansas at Little Rock
University of Arkansas at Little Rock , is a public research university located in Little Rock, Arkansas, United States, and the second largest university by enrollment in the state of Arkansas....
, working his way through college as a local radio announcer. Together with his wife, Ross owned and operated a small pharmacy in Prescott, Arkansas
Prescott, Arkansas
Prescott is a city and the county seat of Nevada County, Arkansas. The community had a population of 3,868 at the 2000 census. Prescott is part of the Hope Micropolitan Statistical Area....
, which they sold in May 2007. The Ross family has two children and attend the First United Methodist Church of Prescott.
Ross also served as Chief of Staff to then-Lieutenant Governor Winston Bryant
Winston Bryant
Winston Bryant is a former Democratic Secretary of State , the tenth Lieutenant Governor and attorney general of the U.S. state of Arkansas.He was born in Malvern, the seat of Hot Spring County...
from 1985 to 1989.
Arkansas State Senate
In 1990, Ross was elected to the Arkansas State Senate becoming the legislature's youngest member at that time; he served for ten years until his election to the U.S. House of Representatives in 2000.Committee assignments
- Committee on Energy and CommerceUnited States House Committee on Energy and CommerceThe Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more than 200 years...
- Subcommittee on Commerce, Manufacturing and Trade
- Subcommittee on Health
- Subcommittee on Oversight and InvestigationsUnited States House Energy Subcommittee on Oversight and InvestigationsThe U.S. House Energy Subcommittee on Oversight and Investigations is a subcommittee within the House Committee on Energy and Commerce.-Jurisdiction:...
- NATO Parliamentary AssemblyNATO Parliamentary AssemblyFounded in 1955, the NATO Parliamentary Assembly serves as the consultative interparliamentary organisation for the North Atlantic Alliance. Its current President is Karl A...
Caucus Memberships
- Congressional Delta Caucus (Co-Chair)
- Congressional Sportsmen's Caucus (Co-Chair)
- International Conservation CaucusUnited States Congressional International Conservation CaucusThe U.S. Congressional International Conservation Caucus is a bipartisan congressional organization that was founded in September 2003 with the conviction that “the United States of America has the opportunity, the obligation and the interests to advance the conservation of natural resources for...
Ross is a Co-Chair of the fiscally conservative, Democratic Blue Dog Coalition, Co-Chair of the Congressional Sportsmen's Caucus, President of the Mississippi Valley Flood Control Association and Vice President of the NATO Parliamentary Assembly
NATO Parliamentary Assembly
Founded in 1955, the NATO Parliamentary Assembly serves as the consultative interparliamentary organisation for the North Atlantic Alliance. Its current President is Karl A...
.
Ross is against gun control
Gun control
Gun control is any law, policy, practice, or proposal designed to restrict or limit the possession, production, importation, shipment, sale, and/or use of guns or other firearms by private citizens...
and is one of the few Democratic members of Congress to consistently earn an A+ rating from the National Rife Association's Political Victory Fund.
Ross considered running for the position of Democratic Caucus Vice Chairman for the 110th Congress; however, he deferred to incumbent John Larson
John Larson
John Barry Larson is the U.S. Representative for , serving since 1999. He is a member of the a Democratic Party. The district is based in the state capital, Hartford.Larson is the chairman of the House Democratic Caucus....
after Rahm Emanuel
Rahm Emanuel
Rahm Israel Emanuel is an American politician and the 55th and current Mayor of Chicago. He was formerly White House Chief of Staff to President Barack Obama...
chose to run for caucus chair, which is the position for which Larson had been running.
The Blue Dogs and health care
On June 19, 2009, Ross made clear that he and a group of other fiscally conservative, moderate Democrats, known as the Blue Dog Coalition, were increasingly unhappy with the direction that health-care legislation was taking in the House. They claimed the health care reform bill was being written behind closed doors without their input and that the proposals being consider fall short in reducing costs and increasing efficiency, outlining only a fraction of what will be required to achieve a product that does not add to the deficit. Ross cited, among other things, provisions that major health-care companies also strongly oppose. Ross was the guest of honor at a special "health-care industry reception," one of at least seven fundraisers for the Arkansas lawmaker held by health-care companies or their lobbyists this year, according to publicly available invitations. According to Ross's Federal Election CommissionFederal Election Commission
The Federal Election Commission is an independent regulatory agency that was founded in 1975 by the United States Congress to regulate the campaign finance legislation in the United States. It was created in a provision of the 1975 amendment to the Federal Election Campaign Act...
Disclosure Report, which every candidate must file quarterly, eight percent (8%) of his total campaign contributions have come from the health care industry in the last election cycle (2007-8).
Ross was thrust into the national spotlight on July 21 when he and a group of seven Blue Dog Democrats on Energy & Commerce bucked their party's leaders and brought the committee mark up process of H.R. 3200, America’s Affordable Health Choices Act of 2009, to a halt. House Energy and Commerce Committee Chairman Henry Waxman postponed meeting publicly to discuss the health-care legislation to negotiate with the Blue Dogs, meeting privately with Ross and other members of the so-called Blue Dog Coalition, conservative Democrats who sit on the committee and could join Republicans and vote down a bill they don't like since the panel has 36 Democrats and 23 Republicans.
After days of back-to-back meetings and intense negotiations into the night, four of the seven Blue Dog Democrats on the House Energy and Commerce Committee, led by Ross, said they resolved their differences with Chairman Henry Waxman of California and were able to force House leadership to agree on several provisions, namely that the full House would not vote on the legislation until at least September so lawmakers would have time to read the bill and listen to constituents.
Other concessions won by Blue Dogs, which drew immediate opposition from liberals in the chamber, would shave about 10 percent from the health care overhaul's $1 trillion, 10-year price tag, in part by limiting subsidies to people who are not insured. The exemption for small businesses would be doubled so that only businesses with payrolls greater than $500,000 a year would be required to offer insurance or pay a tax equivalent to 8 percent of their payroll.
Because many Blue Dogs, especially Ross, had serious concerns about the bill's potential harmful affects on rural doctors and rural hospitals, the group forced House leadership to accept that the government would negotiate rates with health care providers instead of using Medicare rates in any so-called public option.
President Obama praised the efforts of the Blue Dog Coalition in a statement issued after the agreement was announced: “I'm especially grateful that so many members, including some Blue Dogs on the Energy and Commerce Committee, are working so hard to find common ground. Those efforts are extraordinarily constructive in strengthening this legislation and bringing down its cost,” the President said in a statement.
However, some of the concessions to Ross set off a revolt among members of the Congressional Progressive Caucus
Congressional Progressive Caucus
The Congressional Progressive Caucus is the largest caucus within the Democratic caucus in the United States Congress with 83 declared members, and works to advance progressive issues and positions....
, who said they feared that the public insurance plan was being weakened. “We do not support this,” said Representative Lynn Woolsey
Lynn Woolsey
Lynn C. Woolsey is the U.S. Representative for , serving since 1993. She is a member of the Democratic Party. The district includes all of Marin County and most of Sonoma County. She is a member of the Congressional Progressive Caucus, and its co-chair...
, Democrat of California, co-chairwoman of the progressive caucus. "It’s a nonstarter."
After Congress' August recess, Ross announced that he could not support a bill with a Public Option. In a letter to constituents, he claimed that "An overwhelming number of you oppose a government-run health insurance option, and it is your feedback that has led me to oppose the public option as well." However, a Research 2000 poll, commissioned by the left-leaning group Daily Kos, found that a majority of his district actually supported a Public Option. While a poll from the University of Arkansas only found support for the public option at 39 percent. Ross ultimately voted against the Health Care Reform bill that passed the House on November 7, 2009 In January 2011, Ross was one of 3 Democrats to vote with the unified Republican caucus for the repeal of the recent health care reform law.
In 2011, he co-sponsored HR 3, the No Taxpayer Funding for Abortion Act. The bill contained an exception for "forcible rape," which opponents criticized as potentially excluding drug-facilitated rape, date rape, and other forms of rape. The bill also allowed an exception for minors who are victims of incest.
Political campaigns
Ross won a narrow victory against incumbent Jay DickeyJay Dickey
Jay W. Dickey, Jr. is a former U.S. Representative from the Fourth Congressional District of Arkansas. He served in Congress from 1993 to 2000...
in 2000 by portraying himself as a moderate, like the political tendencies of his district. In contrast, Dickey was seen as a controversial conservative because of his comments on stem cell research and homosexuality. Ross was the only Democrat outside of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
to defeat a Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
incumbent.
Ross easily defeated Dickey in a 2002 rematch, then ran unopposed in 2004
United States House elections, 2004
Elections to the United States House of Representatives for the 109th Congress were held on November 2, 2004. The House of Representatives has 435 seats. It coincided with the reelection of President George W. Bush. In the 108th Congress, Republicans held 227 seats, Democrats held 205, with two...
. He picked up an easy victory in the 2006 election, defeating the similarly named Republican, real estate executive Joe Ross, 75 percent-25 percent.
2008
Ross had no Republican opponent but did face Hot Springs lawyer and Green Party candidate Joshua Drake, who he beat with a decisive 87% of the vote.During the 2008 presidential campaign, like most Arkansas Democrats, Ross endorsed former U.S. Senator and former First Lady of Arkansas Hillary Rodham Clinton
Hillary Rodham Clinton
Hillary Diane Rodham Clinton is the 67th United States Secretary of State, serving in the administration of President Barack Obama. She was a United States Senator for New York from 2001 to 2009. As the wife of the 42nd President of the United States, Bill Clinton, she was the First Lady of the...
(D-New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
) for President.
2010
Winning 58% of the vote, Ross handily defeated Republican nominee Beth Anne Rankin (40%) and Green Party nominee Josh Drake (2%). Ross was the only congressional representative of Arkansas's delegation seeking reelection in 2010 and now is the only House Democrat in the Arkansas Congressional Delegation.2014 gubernatorial campaign
Ross is considered a potential gubernatorial nominee for the Democrats in 2014. Ross says his interests lie in Arkansas, not in national party politics, and that "it's no secret" that he'd want to help lead the state "at some point in the future." He says he does not know if that will be in 2014.On July 25, 2011, Ross announced that he would retire from Congress at the end of 2012. As for possibly running for Governor of Arkansas in 2014, he said "Whether I run for Governor in 2014 is a decision I have not yet made and won't make until sometime after my term in this Congress ends. But I do know if I was re-elected to the U.S. Congress next year, my term in the Congress would overlap with the Governor's race. I believe it would be impossible to successfully run for Governor here at home, while effectively carrying out my congressional duties in Washington.
Electoral history
ProPublica investigation
On September 22, 2009, an investigative report co-published by a New York City-based group ProPublicaProPublica
ProPublica is a non-profit corporation based in New York City. It describes itself as an independent non-profit newsroom that produces investigative journalism in the public interest. In 2010 it became the first online news source to win a Pulitzer Prize, for a piece written by one of its...
and the The Politico
The Politico
The Politico is an American political journalism organization based in Arlington, Virginia, that distributes its content via television, the Internet, newspaper, and radio. Its coverage of Washington, D.C., includes the U.S. Congress, lobbying, media and the Presidency...
reported that in 2007, Ross was paid $420,000 for the building and lot of his family pharmacy in Prescott, Arkansas
Prescott, Arkansas
Prescott is a city and the county seat of Nevada County, Arkansas. The community had a population of 3,868 at the 2000 census. Prescott is part of the Hope Micropolitan Statistical Area....
by USA Drug
USA Drug
USA Drug is a convenience store and pharmacy chain in the United States that operates more than 160 stores in Arkansas, Oklahoma, Mississippi, Missouri, and Tennessee. It was founded in Pine Bluff, Arkansas in 1986. Its headquarters are still located in Pine Bluff with additional offices in Little...
, a Pine Bluff, Arkansas
Pine Bluff, Arkansas
Pine Bluff is the largest city and county seat of Jefferson County, Arkansas, United States. It is also the principal city of the Pine Bluff Metropolitan Statistical Area and part of the Little Rock-North Little Rock-Pine Bluff, Arkansas Combined Statistical Area...
-based pharmacy chain. The property had been assessed in 2007 by the county at $263,000; an independent appraiser hired by ProPublica put the 2009 value of the property at $198,000, although it was well into an economic recession that began in 2008.
USA Drug also paid roughly $1.2 million for related assets of the property, such as stock, and paid roughly $100,000 for a non-compete agreement. As of the date of the report, Holly Ross remained the pharmacist at Holly's Health Mart under USA Drug.
Additionally, USA Drug owner Stephen L. LaFrance donated $2,300, the maximum contribution allowed, to Ross' campaign two weeks after the sale was made. In two previous elections, LaFrance had supported Ross' opponent Jay Dickey, a close friend of LaFrance.
Following up on the story, the Arkansas Democrat Gazette reported shortly thereafter on September 23 that, “Richard Jackson, a professor of pharmacy administration at Mercer University in Atlanta and an expert in evaluating the worth of pharmacies, said the price tag for the pharmacy’s assets was ‘well within the ballpark’ of what similar pharmacies in similar communities would bring.”
The same article continued saying that Jackson agreed that the keys for the buyer of a pharmacy are those assets — such as the inventory, the fixtures and the “good will” the business has established in the community, an intangible asset “with significant value especially in a rural area.”
It quoted Jackson as saying that the price the Rosses received for the pharmacy’s assets — between $500,000 and $1 million — is “very average” and that “there’s nothing unusual about that whatsoever. I value pharmacies every day, and most are going to fall within that range.” He also commented on the noncompete agreement – standard in pharmacy sales – saying that “people come to that pharmacy not because of the bricks and mortar, but because of the pharmacist. There is a distinct and significant value to that pharmacist being there.”
That same article continued saying, “Scott Pace of the Arkansas Pharmacists Association echoed Jackson, noting that the sale of any pharmacy’s assets would take into consideration a number of factors in addition to the value of the real estate. He provided data from the National Community Pharmacists Association showing that the average independent community pharmacy had $3.6 million in sales in calendar year 2007, with an average inventory of more than $298,000.”
On September 25, the Arkansas Democrat Gazette reported that the only other pharmacy owner in Prescott — Ross’ former political and business rival — said the deal seemed fair. All Care pharmacy owner state Sen. Percy Malone was reported to say, “I would have bought it for that." In 1992, Malone and Ross ran a spirited Democratic primary campaign against each other for the state Senate, the Democrat Gazette reported. Malone said he “didn’t see anything out of line” in the price USA Drug paid and added that since there were only two drugstores in the town of 3,686 people, the price would likely be higher than the property’s assessed value.
The same article interviewed other pharmacy owners in Arkansas who have in recent years have had similar business transactions, such as David Smith who sold Central Pharmacy in Conway to Cardinal Health Care in 2006. Cardinal subsequently sold it to the Medicine Shoppe. Smith, who manages the pharmacy said that he received at least $50,000 in a noncompete agreement that stipulated that he couldn’t work for another pharmacy within five miles (8 km) for a threeyear period. Holly and Mike Ross received $110,000, but their noncompete agreement came with much more stringent terms. They agreed not to work for a competitor within 20 miles (32.2 km) for a period of 10 years. Smith said USA Drug “got an incredible deal." That’s because, Smith said, to a great extent a pharmacy’s value is tied up in the pharmacist himself. “The store revolves around the store owner or pharmacist,” he said. “That’s the face people trust.” To illustrate how important the noncompete agreement is, he said it was a “huge” deal that LaFrance hasn’t switched signs on the front of Holly’s Health Mart. “It’s a very shrewd move on his part to have retained that name,” he said.
The same article stated that it’s also common for a pharmacy chain to pay higher than assessed property values when acquiring land and buildings. Larger chains have paid premiums for land in smaller Arkansas towns in recent years it reported. For instance, Walgreen Co., the Illinois-based drug giant, purchased 2.8 acres (11,331.2 m²) and a building in Wynne in 2007 for $650,000. The current value of the land, according to the Cross County assessor’s office is $145,800. The same year, the chain bought an empty 1.3 acres (5,260.9 m²) plot in Newport for $560,000. In 2008, the Jackson County assessor pegged the land’s value at $35,900. And in 2008, according to Garland County records, Walgreen paid $990,000 for 1.8 acres (7,284.3 m²) and a building that was listed with a $282,650 value.
External links
- Congressman Mike Ross official U.S. House site
- Congressman Mike Ross official campaign site
- Profile at SourceWatchSourceWatchSourceWatch is an internet wiki site that is a collaborative project of the liberal Center for Media and Democracy...