Dáil debates

Thursday, 28 February 2008

Pharmaceutical Pricing: Statements

 

1:00 pm

Photo of Beverley FlynnBeverley Flynn (Mayo, Independent)

The HSE cannot negotiate with the wholesalers. Is it the case that the Minister believes the pharmacists, on their own behalf, should negotiate with the wholesalers? Is it fair that the HSE should cut the pharmacists' 8% until that happens? I am trying to understand the position.

Second, the Minister mentioned that because of a deal made with the manufacturers she believes we are now in a better situation than if pharmacists were actually prescribing generic drugs. The Minister probably does not have it to hand but has she independent evidence of this that does not originate from the Irish Pharmaceutical Healthcare Association? If so, she should circulate it. It is an important point.

With regard to the discount, it is acknowledged that some pharmacists get a 2% discount, while others get a 14% discount. The Minister has said that no pharmacists will be worse off and they will not get any less than the cost of the drugs to them. In practical terms, how is this going to work? If I am getting a 2% discount and the price is being cut by 8%, the Minister will have to make up that differential of 6%. However, if I am getting a 4% discount, the differential is only 4%. Is it the case that pharmacists all over the country will be on a different price? How will that be administered? Is it fair that the HSE should benefit from discounts pharmacists get from wholesalers because they pay their bills promptly but do not get reimbursed by the HSE for 90 days? If pharmacists pay their bill after 60 or 30 days or immediately, they get a discount of 1% for each of those days. Is it fair that the HSE should recoup the benefit of that, when a young pharmacist may be paying the bill out of a bank overdraft facility? Pharmacists have built efficiencies into their business by ordering in bulk and improving their software and computer systems. Is it right that the benefits of such investment by individual pharmacists in their businesses should be taken away by the HSE?

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