As review of cuts to pharmacists’ fees looms Pharmacy Union claims 1,600 jobs have been lost
Thursday, 24 June 2010 13:18
€33 million more than expected cut from fees
Almost a year after a bitter dispute between pharmacists and the HSE, new research indicates that the HSE cut 25% more [€33 million more] than they planned to from pharmacists’ payments. The Irish Pharmacy Union, the representative body for pharmacists, has made a submission to the Minister for Health and Children pointing out that 1,600 jobs have been lost in the wake of the cuts and that patient services have been curtailed.
In light of the impact of the cuts on employment and patient care, the IPU is seeking the recovery of some of this essential funding for pharmacies.
Pharmacists will lose between €144m and €166 million in a full year as a result of the cuts imposed under the Financial Emergency Measures in the Public Interest Act 2009 (FEMPI), according to an analysis of figures supplied by the Department of Health and Children prior to making the submission. The Minister for Health and Children had announced last year that cuts would be no more than €133 million.
The PwC analysis shows that average earnings of a pharmacy would fall by more than €100,000 as a direct result of the FEMPI cuts. “This equates to a 30% decline in public medicine earnings,” said IPU President Darragh O’Loughlin, adding that, even allowing for job losses and other cost-cutting in pharmacies, the cuts had reduced pharmacy net profitability by approximately 38%.
The Minister for Health had originally stated that cuts imposed last summer represented a 24% cut in pharmacists’ payments; however, this was disputed by the IPU at the time.
“The report clearly shows that the magnitude of the cuts imposed on pharmacies is far greater than the reductions made elsewhere in the medical supply chain and also exceeds cuts in payments to other healthcare professionals,” O’Loughlin stated.
Based on survey research by the PWC, it is estimated that more than 1,600 full-time equivalent jobs were lost in the pharmacy sector since last summer, including 300 pharmacists.
The PWC analysis also highlighted that pharmacies had been forced cut back on patient services; 55% had had to stop providing Out-of-Hours services; 39% had been forced to reduce their opening hours; and 18% had ceased providing free medicine delivery services to housebound patients.
“In these circumstances, the IPU urges the Minister to reinstate the fee for looking after patients over the age of 70; change the dispensing fee structure and establish a process to address the many challenges faced by all stakeholders involved in the delivery of medicines to the community,” O’Loughlin said.
When the Minister for Health abolished the automatic entitlement to a medical card for patients over the age of 70, the Minister also abolished the payment of fee to pharmacists for caring for patients over the age of 70.
However, since most over-70s patients have retained their medical cards, there no less demand for professional pharmacy advice from the more than 337,000 over-70s who hold a medical card.
“The reduced fee structure does not adequately cover the costs of providing the additional care required by patients over the age of 70; this has cost pharmacists €15.6 million over a seven month period.”
