HSE to hold talks with pharmacy union over row on pricing structure

THE HEALTH Service Executive (HSE) is to hold talks with the Irish Pharmacy Union (IPU) today in an attempt to find a resolution…

THE HEALTH Service Executive (HSE) is to hold talks with the Irish Pharmacy Union (IPU) today in an attempt to find a resolution to the row over the introduction of a controversial new pricing arrangement for community pharmacists.

Several hundred pharmacies have indicated that they are either planning to withdraw or are considering withdrawing from dis-pensing medicines under the various community drug schemes as a result of the dispute.

The IPU, which met the Minister for Health Mary Harney on Thursday, said yesterday that it was seeking to find a process to address the current issues.

The IPU said it was looking for a comprehensive review of payments to pharmacists.

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The HSE unilaterally reduced payments to pharmacists for dispensing drugs and medicines as part of a new pricing structure introduced in March.

The HSE has sought to cut the margin paid to pharmaceutical wholesalers from 17 per cent to 8 per cent in an attempt to save €100 million.

However, as it has no direct relationship with wholesalers, to achieve its aim, the HSE has reduced the reimbursement it pays to pharmacists.

The HSE argued that the 17 per cent margin was shared between the wholesalers and the pharmacists in the form of discounts. The IPU has claimed that the HSE, through its actions, has breached pharmacists' contracts.

It has said more than 800 pharmacies have indicated that they are either planning to withdraw or are considering withdrawing from the various community drug schemes as a result of the HSE move from the beginning of May.

The HSE, meanwhile is also expected to seek High Court injunctions against nine pharmacies which are planning to withdraw from the community drug schemes as part of the row.

Three of the pharmacies concerned are in Mayo, while the others are in Donegal, Roscommon and Kerry.

Martin Wall

Martin Wall

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