Pharmacies bring case against HSE

More than 20 pharmacies have claimed they will suffer annual losses of more than €2m if the HSE proceeds with plans to reduce amounts paid to them for dispensing medicines to some members of the public for free.

The group of pharmacies, which includes Patrick Hickey, Hickey's Pharmacy, Drishlawn Ltd, Wheaton Pharmacy Ltd, Gleesons Pharmacy Ltd, Philip Dillon Ltd, Estherfield Ltd, DGM Pharmacies T/a Hickey's Pharmacies, and represents more than 20 pharmacies have brought an action against the HSE over alleged breach of the Community Pharmacy Agreement (CPC).

The proceedings were admitted by Mr Justice Peter Kelly today to the Commercial Court list.

The judge was told the HSE had planned to introduce the new reduced payments scheme on December 1 but had deferred doing so to a date yet unspecified.

A mediation process involving the Irish Pharmaceutical Union and the HSE was also underway, the judge was told.

The judge made directions for the exchange of legal documents between the sides and adjourned the case to next year.

The pharmacies claim that, under the CPC, the HSE pays the pharmacies a reimbursement price for medicines dispensed without charge to members of the public in accordance with provisions of the 1970 Health Act.

The group claims the HSE breached the CPC agreement by unilaterally reducing the price paid to them in September 2006 and September 2007.

It also claims that the HSE had intended, from December 1st last, to set the price paid at a lower rate.

In an affidavit to the court, community pharmacist David Hickey, Garville Avenue, Rathgar, Dublin 6 said that if the HSE reduce the price he will sustain significant loss and damage.

His financial advisor's projections suggest a loss of just more than €2m for the plaintiffs for the year ended 2009.

He said that he cannot sustain the level of loss in the long term, and that if the proceedings are not resolved within a period of two or three months, he would have to apply for injunctive relief in order to ensure that individual pharmacies do not go out of business.