Cuts in pharmacy payments announced

Health Minister Mary Harney has announced reductions in payments to community pharmacists to reduce the rise in State expenditure on drugs and medicines

The cuts, under the Financial Emergency Measures in the Public Interest Act 2009, are aimed at reducing the cost to taxpayers of drugs and medicines dispensed under the GMS (medical card), the Drug Payment Scheme, the Long Term Illness Scheme and other community drugs schemes, a statement from the Department of Health and Children said.

"The cost of the drugs and medicines under these schemes - including ingredient costs, payment for wholesale delivery and pharmacy dispensing fees and retail mark-ups - has doubled since 2002 and totalled over €1.68bn in 2008," Minister Harney said.

‘The rapid escalation in cost must be curtailed. An average of a 12.5% increase each year over six years in costs is not sustainable. Dispensing fees alone have doubled since 2002.

‘The measures I am taking to reduce costs must be seen in the context of overall savings needed in public spending in order to use scarce resources for services, and to put our public finances on a sustainable footing, to help return the country to growth and job creation.

"Pharmacists’ income under these schemes, on a full year basis, can be estimated to be returning to the levels paid in 2006, approximately €418m," the Minister continued.

"With many people having lost their jobs, and wages and incomes being reduced throughout the economy, it is not unreasonable to bring income to pharmacies from State sources back to the level of three years ago."

The measures are expected to result in a saving of to the State of €55m this year. It is intended to implement them with effect from July 1.

Pharmacists have blasted the move, warning that it could put up to 5,000 jobs at risk.

"Front line health services will be seriously damaged," by the decision, according to the Irish Pharmacy Union [IPU], the representative body for 1,900 community pharmacists.

“These cuts announced today amount to a 36 per cent reduction in the current level of payments to pharmacists," said IPU President Liz Hoctor.

"These massive cuts are utterly disproportionate and totally unsustainable. These cuts compromise patient services and up to 5,000 jobs in pharmacies could be lost as a direct result of this Government decision. "

The Union will be communicating with its members on the matter and will also be seeking an urgent meeting with the Minister, according to a statement.