GranCare, a Culver City, Calif.-based nursing home chain, is protesting a decision by the New Jersey Treasury Department to award a $21 million, three-year pharmacy contract to rival pharmaceutical company HPI Healthcare Services.
State officials said HPI-a subsidiary of Albuquerque, N.M.-based Diagnostek-underbid GranCare's pharmaceutical company, CompuPharm, by $4 million. However, GranCare executives questioned whether HPI can provide adequate pharmacy services to New Jersey's state-run institutions.
The state contract had been CompuPharm's largest, accounting for roughly 30% of its $70 million in 1993 revenues. GranCare bought Whippany, N.J.-based CompuPharm last December for an undisclosed amount.
Officials said the issue may not be resolved until September, when Compu-Pharm's contract expires. GranCare executives said the parent company's earnings would not be significantly altered, no matter how the protest is resolved.