Drug firm hits out over HSE margin cuts

THE chief executive of United Drug has claimed the Health Service Executive (HSE) is trying to make up for its own budget shortfall by cutting the profit margins for drug distributors.

Liam FitzGerald told the Irish Examiner yesterday that his company and other distributors were “sitting ducks” for the HSE, which last month announced plans to cut the margin paid to distributors from 17.6% to 8% from the beginning of 2008. Additional cuts are proposed for 2009.

He said the cuts threatened many pharmacies, particularly those in rural locations, and that his company would mainly focus its future investment outside of Ireland. He called on the HSE to publish the recommendations of a report drawn up by Indecon on the cost of distributing drugs.