July 16, 1996
(Health)

Health Minister Comments on Pharmacy Dispensing Fees

The Minister of Health, Lloyd Matthews today responded to claims that the reduction in dispensing fees paid to pharmacists for social services clients is harming quality of care. The minister said he was concerned with allegations that some pharmacies were not offering an appropriate level of health services. "As minister, it is my primary responsibility to ensure that all residents of this province have access to quality health services and that those services are provided at the best price to the taxpayers of the province.

"All pharmacies in this province are licensed by the same professional body to offer an important health service. I am not aware of any pharmacies currently operating in the province that offer services of a lesser quality. All pharmacists employed throughout Newfoundland and Labrador have the appropriate background to counsel patients and dispense medications prescribed by a physician. To suggest that pharmacies with a lower fee are acting in a less professional manner is highly inappropriate.

"The Newfoundland Pharmaceutical Association is a self regulating professional body with responsibility for upholding professional conduct. If there is a concern that any pharmacy is not meeting appropriate professional standards then the association has a responsibility to ensure that concern is brought to my attention and appropriately dealt with."

The minister added government is not seeking to harm small businesses in the province. "The rate of $3.50 is all government can afford to pay in light of the province's fiscal position. It was never government's intention to implement a co-pay for social services clients as is the case in most other provinces. If, however, some pharmacies choose not to dispense within the set rate then I acknowledge their decision to implement a co-pay and the market will establish the rate."

"In addition," said Mr. Matthews, "government did not act in a rash and unfair manner. This decision was made based on what government can afford to pay. I have always expressed a willingness to work with the Newfoundland Pharmaceutical Association to achieve additional savings in the drug program. The options put forward to date are already being pursued by the Department of Health in conjunction with various health professionals. Sufficient new cost saving measures which would allow government to revisit the new dispensing fee rate, have not been achieved."

The Newfoundland and Labrador Prescription Drug Program for social services recipients cost the province approximately $30 million last year, some $8 million of which was paid directly in dispensing fees.

Contact: Jill Sooley, (709) 729-1377