THE HSE and the Irish Pharmacy Union (IPU) have agreed to strong urging by a High Court judge to enter court-supervised mediation aimed at resolving the long- running dispute over the HSE's decision to reduce payments for services supplied under community medical schemes.
Mr Justice Peter Kelly said it made no legal or financial sense to drag the HSE and hundreds of pharmacies through the courts, that it was time for "sensible discussions" between the HSE and IPU, and he was exercising his power, under Commercial Court rules, requiring them to consider mediation.
He noted both sides had been able to resolve one aspect of their dispute arising from warnings by hundreds of pharmacies of an intention to prematurely terminate from yesterday their CPC - Community Pharmacy Contractor - contracts and said they should be able to resolve all matters through court-supervised mediation.
The HSE had applied for an injunction to restrain what it alleged was the unlawful termination but the judge was told the matter had been resolved after talks under way since Monday.
Under the settlement, the defendant pharmacies will continue to provide CPC services until contracts are terminated in line with the requirement to give three months notice of termination.
More than 500 pharmacies wrote to the HSE in March and said either they would terminate their contracts on or before May 1st or else that they would reserve their position on terminating that day or generally.
Urging mediation yesterday, Mr Justice Kelly said the court was "inundated" with applications involving pharmacies and the HSE and it made no sense to drag the matters through the courts.
After counsel for both sides indicated willingness to enter mediation, the judge adjourned the matter to May 26th when he said he wanted to be told of developments and the identity of the mediator. He also said that if either party was behaving unreasonably, there would be substantial costs consequences.
He said that, after the termination of contracts issue had been resolved through talks, impetus should be maintained. However, talks should be under the supervision of the court as the talks between the sides seemed to have been going on interminably.
When counsel asked whether the mediation referred to all the various actions presently before the court arising from the CPC dispute, the judge said the reality was that the IPU was representing the pharmacies on this issue and the discussions would be between the IPU and HSE, which he hoped would give rise to an overall settlement of the dispute.
Brian O'Moore SC, for several pharmacies, said his side couldn't agree more that there should be mediation and they would write to the HSE suggesting who should conduct it.
Paul Sreenan SC, for the HSE, said his side would also be favourably disposed to mediation.
The judge also stressed that, should mediation fail, the fixed hearing on July 22nd of an action by a large number of pharmacists against the HSE and the Minister for Health challenging the "unilateral" alteration of the terms of the CPC would not be affected.