Pharmacists claim 300 outlets could close

As many as 300 pharmacies could close as a result of plans by health employers to push through plans to reduce payments to pharmacists, according to the Irish Pharmacy Union (IPU).

A survey presented to the Joint Oireachtas Committee on Health and Children today by the IPU today predicts that 5,000 jobs could be lost if changes to reduce margins on drugs dispensed to medical card holders under the community drug scheme are implemented.

The IPU, which represents 1,600 pharmacists, has accused the Health Service Executive (HSE) of abusing its position as the dominant customer of independent pharmacies, to push through changes without agreement.

Speaking to the Joint Oireachtas Committee this afternoon, the IPU's president, Michael Gurkian said the survey highlighted the extent of the crisis now threatening the sector.

"If the HSE is allowed to force through these proposals, hundreds of pharmacies will close, thousands of jobs will be lost and patient care will suffer," said Mr Gurkian.

According to the study, 89 per cent of IPU members said that they would have to lay off staff if the proposals are implemented while 55 per cent claimed they would have to reduce opening hours.

Some 20 per cent of survey respondents warned that implementation of the HSE plan could result in the permanent closure of their pharmacy.

Fianna Fáil TDs have backed the IPU's demand for an independent arbitrator to review the current situation and make recommendations on appropriate payment for pharmacists.

Fine Gael has also called for an independent arbitrator to intervene in the dispute. The party warned that patients face threats to key services unless the dispute is resolved by March 1 ^st, when the contractual change is due to be implemented and today tabled an amendment to a motion to ensure patient services are not reduced.

"While I fully support the HSE in their endeavour to get value for money and cheaper medicines for patients I cannot support the unilateral approach they have taken to this issue, said Fine Gael health spokesperson, Dr James Reilly.

"There are far-reaching consequences of this issue which warrant the intervention of an independent arbitrator. In particular rural communities face the further denuding of local patient services if community pharmacies are forced to close for financial reasons," he added.

However, the HSE told the joint Oireachtas committee this afternoon that patients and taxpayers are paying over twice as much for drug deliveries as the retail pharmacy sector.

"The current situation, where patients and taxpayers are paying €100 million a year more than anyone else, is not sustainable," said Kamal Sabra, head of the HSE's Corporate Pharmaceutical Unit.

"That €100 million is equivalent to over a thousand nurses. It is a year's supply of medicines for 120,000 medical card patients.  It is a year's medicines for over 50,000 long term illness patients. It is a sizeable part of the cancer budget."

"The HSE and manufacturers have received explicit assurances from wholesalers that, under the new arrangements, the net monthly cost to pharmacies for reimbursable products will not be greater than the amount reimbursed by the HSE - therefore no pharmacist will be out of pocket." added Mr Sabra.