Minister for Health Mary Harney has said pharmacists will continue to be "adequately rewarded" for dispensing medicines, despite their union's claims that a cut in their fees threatens jobs and the supply of medicines to patients.
Ms Harney was responding to claims by the Irish Pharmaceutical Union today that the Government’s move to cut fees paid under the community drug schemes would force “thousands of job losses and widespread closure of pharmacies”.
The union, which held an "emergency meeting" in Dublin, also claimed there would be a crisis in the supply of drugs within 10 days. Up to 1,100 pharmacists have threatened to withdraw from dispensing to medical card holders and those on other community drugs schemes from August 1st.
Speaking on RTÉ's News at OneMs Harney said the Government was trying to contain the rising cost of medication in Ireland, and in particular to reduce the cost to patients. She said that prior to June 1st, a drug that cost €85 million coming from the factory, cost over €150 million to get to the patient, when distribution and dispensing costs were taken into account.
Ms Harney said that even after the pharmacists' fees were cut, they would retain a margin of 25 per cent on the drugs dispensed.
She added that the Government wanted to move to a system of "reference pricing" from next yer where it would specify the price it would pay pharmacists for various types of drugs and "only pay that price".
"I believe that pharmacists will still continue to be adequately rewarded for the huge skill that they bring in dispensing medicines to our patients," she said.
More than 1,100 pharmacists, according to the IPU, have written to the Health Service Executive (HSE) indicating they will withdraw from dispensing medicines to medical card holders and those on other community drugs schemes from August 1st.
The cuts, which aim to save €55 million this year and €133 million in a full year, are provided for under the Financial Emergency Measures in the Public Interest Act 2009. Pharmacists were collectively paid €540 million last year to dispense drugs under community drugs schemes.
In a statement, the IPU said today the country was “10 days away from a crisis in the supply of medicines”.
IPU president Liz Hoctor said the crisis could be resolved and that Minister for Health Mary Harney could still secure the required savings if she sat down with the Irish Pharmacy Union to discuss the matter before that date.
“Does the Minister want to destroy the pharmacy network or does she want to make savings? Pharmacists want to help the Minister reduce the national medicines bill, but the way the Minister is doing this will simply not work. It will undermine patient services, force thousands of job losses and widespread closure of pharmacies. We can help the Minister make her savings but not on these terms.”
Stephen McMahon, of the Irish Patients' Association, said people with chronic illnesses and diseases would be seriously affected by the dispute.
“Immediate savings are required and these ideally must be negotiated between all parties,” said Mr McMahon.
“Health care costs increases are unsustainable. Negotiation is the only way out of this imminent health care crises.”
The HSE has drawn up an initial list of alternative dispensaries which patients can attend and has also invited pharmacies in the North to consider taking up HSE contracts to dispense to patients along the Border.
In a statement this evening, the HSE said 867 pharmacies will be open for Medical Card and other State drugs schemes from August 1st. It added that up to today, 776 pharmacies had given the HSE agreement-termination notices.
The IPU's counterpart organisation in the North, however, refused to back the HSE's request.
Chief executive of the Pharmaceutical Contractors Committee, Terry Hannawin, said: "This attempt to cobble together an arrangement involving pharmacies in the North raises all sorts of practical and technical problems, safety issues and possible legal barriers. But even if they could be overcome, this is frankly no solution.
"The right and proper solution is to get back to the negotiating table with representatives of community pharmacists in the Republic, find a fair way forward and resolve the dispute as quickly as possible. We urge the HSE to do that in the best interests of patients and the public.
"We cannot recommend that pharmacy contractors in Northern Ireland participate in the scheme proposed in these newspaper advertisements.”
The IPU said about 1,200 pharmacists from throughout the country were in attendance at the meeting in Ballsbridge, Dublin, and that many pharmacies would be closed today due to the meeting.
Further information on the HSE-operated pharmacies is available on the organisation's website.