Compromise explored in pharmacists' dispute

MOVES WILL continue today in a bid to find a resolution to the dispute over the controversial new pharmacy pricing system which…

MOVES WILL continue today in a bid to find a resolution to the dispute over the controversial new pharmacy pricing system which could see hundreds of pharmacies withdraw from the community drug schemes.

It is understood that the new moves centre on the independent body established by the Government to assess how much pharmacists should be paid in future for dispensing medicines under the community drug schemes taking account of a broader range of factors in determining new fee levels.

Seán Dorgan, the chairman of the independent body established to determine a new fee system for pharmacists, has signalled that the group may recommend alternatives to the controversial across-the board reimbursement cuts introduced by the Health Service Executive (HSE).

Mr Dorgan, the former head of the IDA, is also expected to propose a new timetable for the measures.

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In a confidential letter to the Minister for Health Mary Harney last week, Mr Dorgan said that it was not concentrating solely on introducing a single flat fee for pharmacists for dispensing medicines under the various community drug schemes.

Mr Dorgan said that there were "complexities in the nature of the pharmacy business that may require more graduated and sophisticated approaches than have been proposed to date".

Hundreds of pharmacists around the country have told the HSE that they plan to withdraw from contracts to dispense medicines for patients under the medical card scheme and the various community drug schemes in protest at a unilateral 8 per cent reduction in reimbursement levels put in place by the HSE in March.

The pharmcists say that the new pricing structure will devastate their businesses.

In his letter to the Minister, which was dated April 23rd, Mr Dorgan acknowledged that the HSE and the Government were trying to deal with an escalating drugs bill. However, he said that the controversial reimbursement cuts were "likely to have significant effects on the pricing and business models of pharmacies beyond what is funded or supported by the HSE".

In a replying letter on April 25th, Ms Harney said that when she established the group she wanted community pharmacists to receive an appropriate dispensing fee that would cover reasonable costs. Ms Harney told Mr Dorgan that the group could be sure of her support in drawing up its proposals. Mr Dorgan's group is expected to finalise its report by the end of next month.

The IPU yesterday did not comment on Mr Dorgan's letter. However a spokesman confirmed that it had met with Ms Harney late last week. He described her intervention as "positive and helpful".

He said that subsequently open and frank talks had been held with the HSE on Monday. However the IPU spokesman said that a further engagement with the HSE yesterday had been "disappointing" and little progress had been made.