150 chemists take action against HSE

UP TO 150 pharmacists are planning legal action against the Health Service Executive over its plans to reduce the Government’s spend on various community drugs schemes.

These individual actions are separate to a case being taken by the Irish Pharmacy Union also challenging the HSE decision to revise downwards by more than 8% the price it pays wholesalers for drugs.

The HSE decision, taken unilaterally, is an attempt to save €100 million off the state’s drugs bill.

However pharmacists argue that under the arrangements, due to take effect from March 1, pharmacists will end up paying more for medicines than the amount reimbursed to them by the HSE under the State schemes. The HSE denies this.

Yesterday 150 members of the Independent Pharmacy Ownership Scheme (IPOS) said they were mounting their legal challenge on the grounds they believe the HSE’s attempt to reduce the reimbursable price is in breach of their individual contracts with the HSE — which provide for the current level of payments.

The organisation said the HSE move “was putting at risk the future of community pharmacy in Ireland as it will significantly decrease pharmacies’ profits and turnover”.

Director Tom Howard said: “The contract our members have with the HSE is clear and given the belligerent attitude of the HSE, which has consistently refused to engage with pharmacists on this matter, they have no choice but to instigate legal action to force the HSE to honour its contracts.”

Mr Howard said community pharmacy was “one of the few areas of the health sector that works”.

The IPOS called on Health Minister Mary Harney to intervene with the HSE “in order to protect the future of community pharmacy”.

The state has 1,600 community pharmacists who dispense drugs to medical -card holders under the GMS scheme as well as other state schemes including the Drugs Payment Scheme, the Long-term Illness Scheme and the Methadone Treatment Programme. Many have threatened to withdraw from these schemes from March 1 if the HSE presses ahead with its price reduction plan. However the HSE has warned pharmacists who do so will be in breach of contract unless they have given three months notice.

The HSE also points out profit margins enjoyed by wholesalers are the double the EU average.