- Pre-Budget Submission Calls for ‘Fair Fee’ for Pharmacies.
- 16-Year Pay Freeze Unfair and Unjustified.
21 July 2024: The Irish Pharmacy Union (IPU) in its pre-budget submission has emphasised the urgent need to address the chronic underfunding of Ireland’s community pharmacy sector and pay Community Pharmacists an economically viable dispensing fee. Pharmacists are being paid less than they were twenty years ago.
IPU President Tom Murray said that it has been outlined to the Department of Health that 10% of Community Pharmacists are operating at a loss and another 33% are perilously close to becoming unviable based on the inadequate margins they are currently achieving. “The current fee does not cover the costs and in fact because of the regressive and penal nature of the fee structure it does not even cover the labour element of the cost.”
“Many pharmacists are at breaking point, and Community Pharmacy is at a tipping point. The Government needs to take note and immediately provide the necessary funding to set this right and pay the €6.50 flat fee the IPU has been seeking. All other healthcare professionals, workers and contractors have had their payments restored since the 2007 financial crisis ended. We need the Autumn Budget to address this situation and put Community Pharmacy back on a viable, safe and fair footing.
“The majority of pharmacies are small, family-owned, and operated healthcare businesses, Mr Murray explained. “We provide a vital service to the State and our communities by dispensing medicines under community drug schemes. This revenue accounts for approximately 60% of the average pharmacy’s income. It is no longer viable to administer these schemes without the fee increase. Over the last twenty years costs have increased significantly particularly in the past four to five years. Community Pharmacists effectively spend 82% of their time working on the Community Drugs Scheme and are doing so at a loss. Some pharmacies are having to reduce their opening hours while a lot of pharmacists are working extensive hours in order to make ends meet.
“The IPU is calling for the introduction of a core dispensing fee of €6.50 for each medication dispensed under the community drug schemes. The current outdated structure of reducing fees based on the volume dispensed in each pharmacy must be discontinued. Our costs do not decrease with higher volumes, and neither should the payments we receive.”
Mr Murray also highlighted concerns about the increased administrative burden pharmacies face: “There has been a dramatic increase in the level of administration and compliance requirements over the years and this is eating into patient care time. Streamlining and rationalisation must happen as time spent on out-of-date administration schemes is not adding value to the patient, the state or the pharmacist. Until such time as administrative burdens are removed from the pharmacists a €1.50 administration fee per item dispensed will be required to compensate the pharmacy.
Concluding, Mr Murray said, “There is a huge need for expanded pharmacy-based healthcare and Community Pharmacists have the expertise to deliver it, as evidenced by the Covid vaccine programmes and access to emergency contraception, but this expanded role will only be possible if and when pharmacy is put back on a sure financial footing.”
Ends
Notes to the editor
Current FEMPI Cut Fee Arrangement:
- €5.00 up to 20,000 items
- €4.50 for 20,001 to 30,000 items
- €3.50 for over 30,001 items
Current Average Dispensing Fee:
- €4.51
Pre-FEMPI Cuts Average Dispensing Fee:
- €6.00
This outlines how pharmacies are currently being asked to do more for the State each year, while being paid less and facing higher costs. Pharmacists are calling for the introduction of a new fee structure.
