A High Court challenge by a group of pharmacies to the Minister for Health’s decision to cut their fees for dispensing drugs and services under the Community Pharmacy Agreement will not be heard until late this year.
However, an application by the Haire group of pharmacies for an injunction restraining the Minister further implementing the new regulations, effective from July 1st, may be heard later this week if a judge is available.
In its action, the Haire group, also known as the Kissanes group, with registered offices at Amiens Street, Dublin, claims the cuts will put it into a loss making situation meaning it cannot repay its bank loans and it will become insolvent.
Today, Ms Justice Mary Laffoy agreed to fix a date in November for the full hearing of the action, which is expected to last two weeks. She said she would ask the president of the High Court to assign a judge to hear the case.
The judge said she would try to have heard this week an application for an interlocutory injunction restraining the Minister further implementing the new regulations but that was dependent on a judge being available to hear it.
The proceedings, brought against the Ministers for Health and Finance, the Government and the Attorney General, relate to the application of the Health Professional (Reduction of Payments to Community Pharmacy Contractors ) Regulations 2009 governing services provided by the plaintiffs under the Community Pharmacy Agreement.
Pharmacists were paid €421 million in fees and mark up last year under the CPA but Minister for Health Mary Harney had stated she planned to reduce payments by €133 million in a full year, equating to a 31 per cent cut, the group claimed.
It is claimed the Minister unilaterally reduced payment to pharmacy contractors by 20 to 50 per cent in relation to the retail mark up payable under the community drugs scheme and also reduced the reimbursable price of medicines by 6.5 per cent.
The pharmacies also want an injunction restraining the Minister applying the regulations. Among their claims, they allege failure to provide 30 days notice of the change in the payment regime was unlawful and breached their constitutional rights.