MINISTER FOR Health Mary Harney has written to Fianna Fáil backbenchers urging them to hold the line in support of her proposals to reduce margins paid to pharmacists and wholesalers on drugs and medicines.
In her letter she said the move would save €55 million this year and €133 million in a full year and while acknowledging this would pose a challenge for the pharmacy sector she warned not making these savings would be even more challenging for health services and “would mean significant, immediate cuts in hospital and home-based services for patients”.
Her letter to TDs and Senators was dispatched two weeks ago in anticipation of a backlash from pharmacists over the changes, but was released last night.
The backlash came yesterday when the Irish Pharmacy Union (IPU) confirmed that more than 700 pharmacists – half of all pharmacists in the State – would stop dispensing drugs to medical card patients from the beginning of next month unless the cut to their fees was reconsidered.
Individual pharmacists as well as larger chains are among those who have given the HSE 30 days notice of their intention to discontinue providing services on the community drugs schemes.
While the move has the potential to cause chaos the HSE insists it is committed to implementing the changes which are provided for from July 1st under the Financial Emergency Measures in the Public Interest Act 2009.
Under it the Government 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 say this will result in an average loss in income of 34 per cent and will result in the closure of some pharmacies. President of the IPU Liz Hoctor said the cut was excessive and unsustainable. “These cuts will damage pharmacy services, patient care and lead to up to 5,000 job losses,” she said.
A spokesman for Ms Harney said the cost cutting was necessary as fees paid to pharmacists had doubled since 2002 and the €640 million cost of delivering €1 billion worth of drugs from the factory to patients in the community was unsustainable.
These figures were also included in Ms Harney’s letters to TDs and senators, which said the effect of the changes in full-year terms would be a reduction in the average income per pharmacy of €82,000, bringing their income levels back to 2006 or 2007.
A similar dispute occurred last year when the HSE began reducing pharmacists’ fees in a bid to save €100 million. The move was challenged by pharmacists and the High Court ruled last September that the HSE was in breach of contract. The deductions made had to be repaid.
Pharmacists accept gravity of economic plight but proposed cuts will undo years of hard work: page 14