Canadian Pharmacists Journal - Story CICPO Court Action

 Latest Story in the Canadian Pharmacists Journal by Kathie Lynas

Pharmacy owners in Newfoundland and Labrador going to court to challenge right of professional body to negotiate compensation deal “Independent pharmacies may end up refusing to take government drug-plan cards, no matter what the government signs with PANL” — Sue Kelland-Dyer, Executive Director, CICPO.

The organization representing the owners of independent community pharmacies in Newfoundland and Labrador has launched a legal challenge of parts of the provincial Pharmacy Act and will have its day in the Newfoundland Supreme Court later this year. The biggest legal issue for the Council of Independent Community Pharmacy Owners (CICPO) is the provision permitting the province’s professional association — the Pharmacists Association of Newfoundland and Labrador (PANL) — to negotiate financial contracts with government on behalf of the owners.

“An advocacy body for the profession has nothing to do with the commercial operations of businesses, and pharmacies — the individual corporations that government signs legal contracts with — are not members of PANL, nor can they vote,” says the executive director of CICPO, Sue Kelland-Dyer.

Using the pharmacist’s professional body for commercial negotiations, she adds, creates a conflict of interest because PANL is attempting to represent both the private sector employers who employ its pharmacist members, as well as the pharmacists themselves. The situation in Newfoundland and Labrador is unique in Canada, says Ms. Kelland-Dyer, noting that other provincial governments negotiate contracts with the owners’ associations as well as pharmacist bodies. “The action of separating the commercial from the profession enhances the interests of both sides. Businesses have a different agenda than the pharmacists.”

The Council has attempted to lobby government for changes to the Pharmacy Act to rectify the situation, but that hasn’t succeeded. So CICPO took legal action and the Supreme Court hearing is scheduled for December 2, 2011.

Meanwhile, PANL is in the process of negotiating a new compensation agreement with the province, in the face of government plans to reduce the price of generic drugs and eliminate the rebate system. A new pricing model for generic drugs could be devastating for independent pharmacy owners, says Ms. Kelland-Dyer. Newfoundland and Labrador, with so many rural and remote areas, has a very high percentage of independents.

 “We have 54 regions in our province that only have independent pharmacies,” she says. “These stores will be in jeopardy, if not closing - reducing hours and not able to properly serve populations spread out over large areas.” In the end, the independent pharmacies may end up refusing to take government drug-plan cards in their stores, she adds. “No matter what the government signs with PANL, that signature doesn’t bind any corporation to an agreement. They may end up with 65 independent
corporations that don’t recognize it, so what have they achieved?”

252 C P J / R P C • N OV EMB E R / D E C EMB E R 2 0 1 1 • VO L 1 4 4 , N O 6