THE COMPETITION Authority has started an inquiry into whether some pharmacists who recently signalled their intention to stop dispensing drugs to medical card holders are breaking the law.
Under competition law, the organised boycotting of schemes is regarded as being in breach of the Competition Act.
Hundreds of pharmacists began writing to the Health Service Executive (HSE) earlier this month giving it 30 days notice of their intention to stop dispensing drugs to medical card patients and those on other community drugs schemes from August 1st as a result of a decision to reduce their fees.
The reduction in their fees, which came into effect on July 1st, was a Government decision provided for under the Financial Emergency Measures in the Public Interest Act 2009 and it is being implemented by the HSE.
The move aims to save €55 million this year and €133 million in a full year.
Under the changes the HSE will reduce the “wholesale mark-up” reimbursement price paid for delivery of drugs to community pharmacies from 17.66 per cent to 10 per cent. The dispensing fees paid to pharmacists will also change and a €33 million payment made collectively to pharmacists for dispensing to patients over the age of 70, which was introduced following the deal to give everyone over that age a medical card, is being abolished.
Pharmacists have said this will result in an average loss in income of 34 per cent and will result in the closure of some pharmacies and the possible loss of up to 5,000 jobs.
The Irish Times understands that pharmacists who are members of the IPOS (Independent Pharmacy Ownership Scheme) network and whose letters to the HSE withdrawing from the scheme were worded in a similar fashion received letters from the authority in recent days informing them it had opened an investigation into whether their actions were in breach of competition law.
One pharmacist, who did not wish to be named, confirmed the letters had been received.
There are more than 100 pharmacists in the IPOS but it is not clear if all of them have yet given the HSE notice they will withdraw from the medical card scheme.
When contacted the authority said it does not comment on its investigations.
The Irish Pharmacy Union was not commenting on the authority investigation either last night.
The union said earlier this month that at least 700 pharmacists – half of all pharmacists in the State – would stop dispensing drugs to medical card patients from the beginning of August unless cuts in fees were reconsidered.
A similar inquiry was initiated by the authority in 2007 after some pharmacists withdrew from providing methadone to about 3,000 recovering drug addicts, again in a row over fees. However, no prosecutions followed.