Chemists warn of HSE plan to cut payments

One More Thing:There was barely a dry eye in Leinster House on Tuesday as leading pharmacists told a joint Oireachtas committee about how cuts in drug payments proposed by the Health Service Executive would affect their businesses.

Cork-based Dermot Twomey told the committee how his company, Cloyne Pharmacy, would see €75,000 shaved off its top line as a result of the HSE's plan to cut the wholesale price of drugs by 8.2 per cent from March 1st. He said a €38,000 net profit would turn into a €40,000 loss.

Lucan-based Aisling Reast, who owns Kiniron's Pharmacy, said she would lose €16,000 a year if the HSE pushed through its plan.

She warned that she would probably have to lay off staff and reduce opening hours.

The HSE is seeking to cut €100 million from its annual drugs payment scheme, which is good news for the exchequer.

The move has raised a cheer from those who believed pharmacy owners were creaming it for years before liberalisation. Many also pocketed big cheques by selling to overseas buyers.

The pharmacy lobby says the HSE is trying to ram through this proposal and has warned that 337 chemists shops could shut and that 4,500 jobs could be lost as a result of these payment cuts.

While such claims from an industry group should always be taken with a pinch of salt, you can't help wondering if the HSE is being a bit overzealous in its cost-cutting approach.