Pharmacists' Fees Reduced

The Government will cut up to €133 million in payments to pharmacists over next year.

Pharmacists' income would fall back to the levels paid in 2006, according to the Minister of Health, Mary Harney.

She said that the cost of drugs and medicines under the Drug Payment Scheme (DPS), the Long-Term Illness Scheme (LTI) and other community drug schemes, has doubled since 2002, reaching a total of over €1.68 billion in 2008.

"It should not cost €640 million to get €1.04 billion of drugs from the factory gate to the patient," the Minister said.

Currently, the medical card scheme gives pharmacists a dispensing fee of €3.60 per item.

Under the DPS and LTI schemes for private patients, they receive a dispensing fee of €3.16, and 50% mark-up on the ingredient cost of the drugs.

But the Government has decided to replace these arrangements by a new common dispensing fee structure based on a descending scale: For the first 20,000 items, pharmacists will be paid €5; the next 10,000 items, for €4.50; and the remaining items, for €3.50.

The Government will also reduce the 50% mark-up under the DPS and LTI schemes to 20%.

Among other cuts, the Government wants to abolish a €33 million payment paid collectively to pharmacists for dispensing to patients aged over 70.

Harney recognised that these cuts will be a challenge. But she believes that not making these savings would mean "significant, immediate cuts in hospital and home-based services for patients."

"In the absence of any action now, total income to community pharmacists from these sources in 2009 would amount to €550 million – about €343,000 per pharmacy on average. With these measures, this income in 2009 will amount to €495 million – €309,000 per pharmacy on average, a reduction of €34,000 per pharmacy this year," she said.

The Irish Pharmacy Union (IPU), representing around 1,900 community pharmacists, has warned that these cuts could lead to the loss of up to 5,000 pharmacy jobs, which would seriously damage overall 'frontline' health services.

For Liz Hoctor, IPU President said: "These massive cuts are utterly disproportionate and totally unsustainable.

"Although pharmacists are not responsible for rising health costs and have always provided value for money, we had indicated to Government that we were willing to accept a cut equivalent to 8% of our fees in the national interest," Hoctor added.

The Minister said that the 1,600 pharmacies in the State would still receive substantial fees and income from the arrangements.

(AC/BMcC)