Bernard Durkan (Kildare North, Fine Gael)
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Question 95: To ask the Minister for Health and Children if she or her Department or bodies under her aegis have entered into dialogue with the Irish Pharmaceutical Union with particular reference to the need to alleviate possible cessation in the supply of services; if she has received submissions from the pharmacists in this regard; if she will take particular initiatives to resolve the impasse; and if she will make a statement on the matter. [30462/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 96: To ask the Minister for Health and Children if she proposes to take an initiative to allow open ended discussions between her Department and the IPU with a view to having the impact of the Health Service Executive proposals on pharmacy services fully evaluated as per the Indecon Report; if a fair and responsible independent process for the determination of fees and services can be arrived at; if she will refer the discussions to an independent arbitrator or chairman to oversee negotiations in line with her previous and HSE pronouncements; and if she will make a statement on the matter. [30463/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 95 and 96 together.

As the Health Service Executive (HSE) has operational responsibility, under the Health Act 2004, for the management and delivery of health and personal social services, the issue of revised reimbursement prices for community pharmacy under the GMS and community drugs schemes, following the announcement by the HSE on 17 September 2007 of new wholesaler arrangements, is being managed by a HSE-led team which includes representation from my Department.

I have previously outlined in detail to the Oireachtas the legal provisions under competition law which prevent the Health Service Executive (HSE) from negotiating with the Irish Pharmaceutical Union (IPU) on fees, prices or margins for their members. When it became clear that the HSE could not negotiate with pharmacists or wholesalers on fees or margins, a detailed, fair and transparent consultation process, including independent economic analysis and public consultation, was carried out to inform the final determination of the new reimbursement pricing arrangements for drugs and medicines under the GMS and community drugs schemes. These new arrangements were announced by the HSE on 17th September 2007. The independent economic analysis was carried out by Indecon Economic Consultants and was published by the HSE on 13 November 2007. All aspects of the Indecon analysis were considered by the HSE in making its determination.

In regard to the new reimbursement prices, the main wholesaler companies have confirmed to the HSE that they will charge community pharmacists the same price for these drugs and medicines as pharmacists will be reimbursed by the HSE for these products. Furthermore, there are no changes planned by the HSE to the operation of the GMS medical card and community drugs schemes, and all patients continue to receive their entitlements in the normal way.

My Department understands that the HSE has not received formal notification from any community pharmacist regarding cessation of services under the GMS or the various community drugs schemes. They will be required to give three months notice in writing of any intention to cease providing this service.

My Department has received correspondence from the Irish Pharmaceutical Union and other interested parties concerning the new reimbursement pricing arrangements for drugs and medicines under the GMS and community drugs schemes. Officials from my Department have met with the HSE on a number of occasions to discuss wholesaler/pharmacy issues.

To address concerns expressed by the IPU, on behalf of community pharmacists, about the implications of the legal advice on competition law on their right to negotiate fees through the Union, a process of dialogue was established, chaired by Bill Shipsey SC, to explore ways in which concerns raised by the IPU about the implications of this legal advice might be addressed. Despite suspension of this process during the recent withdrawal by individual pharmacists of methadone services, there has recently been renewed engagement between the Irish Pharmaceutical Union and the HSE under the auspices of Mr. Shipsey. I am also exploring, in consultation with the Attorney General, the other relevant Government Departments and the HSE, the best way of progressing the development of a new contract with pharmacists.