Pharmacies win injunction over HSE payments cut

FOUR LINKED pharmacies have secured a High Court injunction restraining the HSE from making lower discount payments to them for medicines and services supplied under the Community Pharmacy Contractor Agreement (CPC).

The injunction applies pending the outcome of court-supervised mediation and/or legal proceedings.

Mr Justice Peter Kelly granted the injunction yesterday after hearing evidence that the four pharmacies – trading as Kissanes pharmacies in Thomastown, Co Kilkenny; Upper and Lower Main Street, Graiguenamanagh, Co Kilkenny; and Borris, Co Carlow – were at risk of insolvency if the payments were not maintained.

The injunction applies pending the outcome of court-supervised mediation between the HSE and the Irish Pharmacy Union (IPU) aimed at resolving the long-running dispute over the HSE’s decision to reduce payments for services supplied under community medical schemes.

If the mediation, due to begin on June 5th next, is successful, it will bring to an end actions initiated by hundreds of pharmacies against the HSE.

If the mediation does not produce agreement, then the first of those actions, known as the Hickey action, will proceed on July 22nd next.

The Hickey case will effectively decide the issues in the other actions and Gerard Hogan SC, for the four plaintiff pharmacies in yesterday’s proceedings, said they would abide by the outcome of the Hickey action.

Mr Justice Kelly described the overall dispute between the HSE and pharmacies as a “running sore” that required to be speedily resolved. The row was of great concern and was causing great distress to members of the public who were in receipt of medicines under community schemes either at no cost or at reduced cost, he noted.

Yesterday’s injunction application was brought by the four pharmacies, all trading as Kissanes pharmacies. The companies had claimed they were at serious financial risk if the HSE proceeded with its intention to pay reduced discounts for medicines and services supplied by pharmacists under the CPC.

In his decision, Mr Justice Kelly rejected arguments by the HSE that the injunction should not be granted because the plaintiffs had not initiated their legal action until April 21st last.

The Irish Pharmacy Union welcomed the ruling.