Court appeal bid over pharmacy drugs

A LIMERICK pharmacist is seeking a High Court injunction today preventing the Health Service Executive (HSE) from reducing payments made to him under the community drugs schemes.

Niall O’Sullivan, who has five pharmacies in Limerick city trading as O’Sullivan’s Pharmacies, believes the HSE’s decision will decimate his business.

Mr O’Sullivan, said he could not wait for the outcome of a separate legal action being taken against the health authority by the Irish Pharmacy Union (IPU) and a number of other pharmacists for an alleged breach of contract.

He opened his first pharmacy on O’Connell Avenue in 1998 and had borrowed heavily in recent years to purchase an additional four pharmacies.

“My borrowings are based on the continuity of the HSE contract that has been in place for the last 35 years,” he said.

He employs more than 40 people and all of them were now on protective notice.

“I am now facing insolvency,” he said. “What the HSE is proposing to do overnight is slash the return on my business by almost 10% in paying us less than we are paying our suppliers.”

The HSE has insisted that people are paying too much for drugs and has claimed that the 17% to 7% reduction in margins should be cost-neutral for pharmacists.

The IPU alleges the move by the HSE to cut wholesale margins will cut pharmacists’ incomes by up to 30% and could put many out of business.

Pharmacists have individual contracts with the HSE for the delivery of services under the medical card scheme and community drugs schemes.