Pharmacy union to lobby new body over payment cuts

THE IRISH Pharmacy Union has decided that it will make a submission to the new independent body established by the Government…

THE IRISH Pharmacy Union has decided that it will make a submission to the new independent body established by the Government to assess how much pharmacists should be paid for dispensing medicines to patients under the community drug schemes.

The union, which represents pharmacists, had expressed concern that it had not been consulted on the membership or the terms of reference of the independent body, which was established by Minister for Health Mary Harney last month.

The union also maintained that the outcome of the body's deliberations had been pre-determined by the Minister as the terms of reference do not allow consideration of payment models other than that involving a flat fee.

However, in a statement yesterday, the union said that it would be making a submission to the new body on a range of issues including the controversial reduction by the Health Service Executive (HSE) of margins to pharmaceutical wholesalers, which pharmacists argue will see their earnings fall by €100 million.

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As the HSE has no direct financial relationship with wholesalers, it has unilaterally reduced the reimbursement price paid to pharmacists by almost half from the beginning of March.

The independent body looking at the future fee structure is chaired by Sean Dorgan, former head of IDA Ireland. It has been requested to report back by the end of May.

Ms Harney said the body would recommend a new community pharmacy dispensing fee after taking submissions from all sides and carrying out its own analysis.

The Government has argued that it cannot negotiate on fees with the union under competition law as pharmacists are independent contractors rather then employees.

It is understood that a number of pharmacists are considering whether they should seek High Court injunctions against the HSE to prevent it from changing the way they are paid for dispensing medicines under the community drug schemes.

Last Friday the High Court granted an injunction to a Co Limerick pharmacist, preventing the HSE from changing his payment arrangements pending the hearing of a full legal challenge.

The union said yesterday that it understood that "a number of pharmacists are considering their legal options in consultation with their legal advisers in the light of last Friday's judgment".

"The union will be proceeding as planned with its legal action in relation to breach of contract by the HSE," the union said in a statement.

"The case is up for further directions on April 14th and the union would hope that the earliest possible date for a full hearing would be given and a judgment delivered before the summer recess," it said.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent