The Health Service Executive (HSE) has said it will restore the full margin it pays to pharmacists for wholesale services following a successful High Court challenge by the Hickey's pharmacy chain.
Last month the High Court ruled that the HSE was in breach of contract over a reduction in payments made to pharmacists for dispensing drugs under various medical card schemes.
The HSE had reduced the margin paid to pharmaceutical wholesalers from 17 per cent to 8 per cent in a bid to save €100 million. However, as it had no direct relationship with wholesalers, it reduced the reimbursement it paid to pharmacists for dispensing medicines instead.
The HSE said today that in compliance with the High Court judgement, the wholesale mark-up the HSE pays pharmacies for medicine supplied through the various medical card schemes will rise by 9 per cent to 17.66 per cent from November 1st.
The Executive said the move will add approximately €8 million per month to the cost of the various medical card schemes it provides and will also lead to a 9 per cent increase in the price paid by patients for medicines.
Pharmacists have welcomed the HSE's decision to reinstate agreed payment arrangements. However, the Irish Pharmacy Union (IPU), which represents over 1,800 pharmacists, today took issue with the HSE over its claim that the move would lead to increased costs for patients.
"The illegal HSE move last March didn't reduce medicine costs for patients and its reversal will not increase
them. It's a pity that even as they climb-down from this mistaken initiative, they continue to mislead patients," said the IPU's president, Liz Hoctor.
She called for the HSE to engage in talks with the IPU to try to agree a way forward and said that once pharmacists had been repaid what was outstanding to them the IPU would be keen to hold discussions with the HSE on how savings could be made as part of talks on a new pharmacy contract.
