July 25, 2011
Government Takes Action to Protect Drug Program Clients
The Provincial Government is enacting a new regulation under the Pharmaceutical Services Act, effective today that will require all pharmacies participating in the Newfoundland and Labrador Prescription Drug Program (NLPDP) to provide 120 days notice to clients and the Minister of Health and Community Services before discontinuing their participation in the program. This action is in response to the intention of some independent pharmacies throughout the province to withdraw services under the NLPDP.
On June 27, 2011, 65 independent pharmacies, all members of the Council of Independent Community Pharmacy Owners, provided 30 days notice to the Provincial Government of their intentions to withdraw services to NLPDP clients. While this period of notice is acceptable in cases of retirement or closure, it is not reasonable under circumstances where a group is intending a mass resignation from billing privileges under the NLPDP.
“This government recognizes the importance of the Prescription Drug Program to each and every resident in the province who relies on this vital service and we are doing everything in our power to ensure this service is protected for those who need it,” said the Honourable Jerome Kennedy, Minister of Health and Community Services. “We have selected 120 days as a notification period, recognizing that most prescriptions, particularly those used to treat chronic diseases, are for 90 day periods. This period ensures that a patient requiring a refill can request one within the 120 day period and will be given time to make alternate arrangements to receive their prescription drugs. This is a critical instrument to protect the health of individuals who use the drug program.”
Council of Independent Community Pharmacy Owners has taken this action after the Provincial Government informed the group any contract negotiations would take place with the Pharmacists’ Association of Newfoundland and Labrador, who have been identified as the sole bargaining agent for community-based retail pharmacies. It is not the Provincial Government’s intention to begin negotiating with splinter groups when there already exists a main bargaining agent.
“Our first priority is the clients of the NLPDP,” said Minister Kennedy. “This regulation will ensure individuals have the opportunity to receive their medication prior to any withdrawal of services. We are also hoping to provide reasonable opportunity for clients of the NLPDP to make alternative arrangements with other pharmacies in this province. This will also provide the Provincial Government with an opportunity to prepare alternate delivery methods for this important program.”
The Provincial Government is in the process of negotiating a new contract with pharmacies in the province with Pharmacists’ Association of Newfoundland and Labrador. Since 2007 the Provincial Government has had a service agreement with the association in relation to monetary items, such as dispensing fees. That contract expired on March 31, 2011. The contract was agreed to by all individual pharmacies throughout the province. In addition, over the next four months, the Provincial Government will be developing and finalizing a provincial generic drug pricing policy. This will occur in discussion with pharmacists.
“As the public is no doubt aware, a generic drug pricing policy holds the potential to have significant cost savings for both consumers and government,” said Minister Kennedy. “In fact, it is estimated that the Provincial Government could save approximately $18 to $45 million annually once fully implemented, savings that can then be invested back into the health care system. Over the coming months we will work to develop a new policy that ensures maximum value for the public, while at the same time ensuring the continued sustainability of the independent pharmacy model.”
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Media contact:
| Jennifer Tulk Director of Communications Department of Health and Community Services 709-729-1377, 699-6524 JenniferTulk@gov.nl.ca |
2011 07 25 3:40 p.m.