Irish pharmacy regime ‘most liberal’
Mr Finlay seems to be unaware that Ireland has the most liberal pharmacy regime in the entire European market and that, since 2002, anyone can open a pharmacy anywhere they wish.
This is in marked contrast to the situation in all other EU member states, which have tight regulations. In addition, in many countries only pharmacists are allowed to own pharmacies, a policy strongly supported by the Irish Pharmaceutical Union (IPU).
Mr Finlay suggests that over €800 million was paid out to Irish pharmacists, yet fails to break down the figures. In 2003, over €700m was paid to pharmacists in respect of ingredient costs (the price of which is set by Government). Mr Finlay fails to mention another important fact - seven out of ten of all medicines dispensed under state schemes attract no mark-up.
Recent increases in the cost of state-run schemes are not due to rising costs of medicines but are largely attributable to Government initiatives such as medical cards for the over-70s and the transfer of patients from institutional to community-based care.
Other factors such as the development of effective, but costly, therapies for chronic illnesses must also be considered.
Ireland’s consumption of medicine per capita is the second lowest in the EU and four times below the rate of the USA - the most deregulated and free market in the world, where patented medicines are five times higher than in Ireland.
Mr Finlay may also be interested to know that 60% of pharmacists dispense less than 10,000 prescriptions a year and Ireland has more pharmacies per head of population than most other EU countries with one pharmacy for every 3,100 people. The EU average is one pharmacy for every 4,500 people.
Mr Finlay raises the issue of newly trained pharmacists from other countries experiencing difficulty in opening stores because of an EU derogation.
The IPU has called on the Government to create the environment in which the derogation could be ended. This requires Government intervention to deal with two issues. Firstly, the Pharmaceutical Society, which is the statutory body, must have the power to establish that pharmacists coming from other jurisdictions are properly qualified and to enforce standards of practice in pharmacies generally in order to protect public health and well being. This will require legislation, which has now been promised for over 20 years.
Secondly, the Government must ensure that Irish pharmacists are afforded the same rights of establishment as pharmacists in other jurisdictions. Derogation is not unique to Ireland; we are one of seven EU member states that apply the derogation.
For example, a pharmacist from any other EU jurisdiction can establish a pharmacy in Ireland, but Irish pharmacists cannot move in the opposite direction because of tight regulation in these countries.
The Government’s own pharmacy review group reported that there was insufficient evidence or research available to indicate “that either more or less restrictive access to state pharmacy contracts would achieve lower prices, or better quality of service.”
Commenting on the OECD conclusion that “more sensible regulation could bring down prices without endangering safety or accessibility,” the pharmacy review group pointed out that “the OECD did not provide evidence that its recommendations would produce these results in the pharmacy market.”
Turning to Mr Finlay’s comment about the family pharmacy, the Mortell report acknowledges that “an ongoing open market is likely to see the reduction or disappearance of some types of pharmacy service, in particular single owner-operated local outlets, and this would be a permanent change.”
This sector urgently requires Government intervention if the current high standard and accessibility of our community pharmacy services are to be safeguarded for future generations.
Anne McCoy
Press and Communications Officer
Irish Pharmaceutical Union
Butterfield House
Butterfield Avenue
Rathfarnam
Dublin 14
