Showing posts with label government newfoundland labrador. Show all posts
Showing posts with label government newfoundland labrador. Show all posts

Monday, April 16, 2012

Notice to Editors




Notice to Editors: 16/04/2012

Please be advised that the Council of Independent Community Pharmacy Owners is preparing information for a News Conference on Thursday or Friday of this week.
This conference will outline the catastrophic losses to independent pharmacy from both the agreement imposed by government and the changes to generic prices forced by legislation. 

Please note that an amending agreement was executed on April 14-2012 and delivered to pharmacies yesterday afternoon. 

There is no tentative agreement and there is no ratification process for pharmacies.
Initially government stated it was making changes to generic drug pricing and would reinvest in pharmacies. The government has since made further changes in an imposed amending agreement that will see negative changes to the reimbursement of dispensing fees. 

Currently there is a “proposal” in place regarding “underserviced” areas regarding an annual reimbursement for qualifying pharmacies. Today there is no agreement on the terms and conditions of such reimbursement.

Further the administration for pharmacies respecting the change in their computer systems to reflect the imposed agreement could not be completed between yesterday afternoon and this morning at opening. This is causing significant confusion as patients fill their prescriptions today. 

The Council will advise editors of the time and place of the conference and the attendees for interview. 

At this point the only comment from the Council is:

Phil O’Keefe Director of Third Party Relations CICPO 

“Our worst fears have materialized; independent pharmacy and the people they serve have been dealt a crippling blow. We are incensed that an agreement was reached without ratification of the businesses it will impact; and in fact was signed by the President of the Pharmacists’ Association of Newfoundland and Labrador, Sandra Carey, who does not own or operate a pharmacy in Newfoundland and Labrador. The government has imposed an agreement which will allow the chain drugstores and mass retailers to survive while inequitably harming independent pharmacy”.  

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Tuesday, March 27, 2012

Government Ignores Reality - will cost Seniors and Families


News Release
New Pricing Scheme Threatens Rural and Inner-city Services

For immediate release, St. John’s – 26/03/2012

Minister of Health Susan Sullivan is demonstrating a dangerous level of ignorance as she adopts a health policy that will irreparably harm front-line health care delivery in rural communities and inner-city neighbourhoods. 

The changes proposed to the generic pricing model to keep up with other provinces in Canada ignore the social demographics, geography and specific needs of Newfoundland and Labrador.

The Council’s spokesperson, Robert Doyle says, “Do we want Newfoundland and Labrador to spend more - per-capita - on generic drugs? No! But will the Dunderdale government achieve lowering the costs by simply copying the models of other provinces? No!” 

Here's why:

1. Our population is aging more quickly and therefore there is a greater requirement for chronic disease medications. 

2. The prevalence of conditions such as diabetes is higher in our province.

3. The lack of medication and disease management programs involving community pharmacy. 

Doyle adds, “The Government of Newfoundland and Labrador will not lower health care costs they will grow them. The Government of Newfoundland and Labrador will lose any ability to provide medication and disease management programs in rural areas and in the inner-city. The Government of Newfoundland and Labrador will lose informal collaborative medication and disease management currently taking place in independent pharmacies.” 

The Council believes this is not an issue of escalating drug prices – as the prices are going down every year as more generics enter the marketplace and through natural competition among generic manufacturers. This is an issue of poor policy review, research, and planning.

The government tried to buy the silence of pharmacies by signing a non-binding amending agreement with the Pharmacists’ Association of Newfoundland and Labrador. It does nothing for the viability of independent pharmacy and is an insult to local small business. 

“The Minister either does not understand or refuses to see the inherent problems in the government’s plan. The government does not have the information it needs to make this decision and it will result in unintended consequences”, Doyle says. 

Government says it will save tens of millions of dollars from a generic drug price reduction – that is not the case.  While generic drugs are being used in the majority of prescriptions filled they make up less than 40% of costs to the program. 

Doyle states, “If government wants to make a real difference in current costs and sustain costs in the future they must look at increasing generic utilization and developing – with pharmacy – a real medication and disease management program.” 

The Council is holding a meeting of its members within the next week and decisions regarding the next course of action will be discussed and ratified at that time.

The first decision has already been made – the Council will engage Dr. Wade Locke to do a thorough analysis of the situation and to develop a made in Newfoundland and Labrador solution.
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Additional Information

The CICPO represents the majority of independent pharmacies in Newfoundland and Labrador.

The CICPO members are located throughout Newfoundland and Labrador and are the only model of pharmacy available in dozens of regions.

Independent pharmacies average 10% front-store sales (other than prescription medications) and 90% back-store (prescription medications) in its sales mix.

Chain drugstores and mass retailers; Shopper’s Drug Mart, Lawton’s/Sobeys, Walmart, Zellers, Costco, and Loblaws range from a 50/50 sales mix with many averaging over 90% in front store sales.

The changes to the generic pricing policy will severely affect independent pharmacies while the chain drugstores and mass retailers gain opportunities to consolidate the marketplace.
Chain drugstores and mass retailers have buffers from revenue loss such as:

a)      In-house wholesale
b)      Front shop sales
c)       Private label generic drugs
d)      Mass purchasing power

This gives the chains and mass retailers a governmental regulated advantage over Newfoundland and Labrador pharmacies.

Government’s negotiation with PANL does not bind corporations and therefore may result in a rejection of the government drug card.

Private Insurance companies negotiate directly with business which is contrary to the position of the Government of Newfoundland and Labrador – which negotiates with a professional body that has no corporate authority to negotiate.

Generic drug prices have been reduced over the past five years from 70 per cent of brand to 50 per cent of brand through natural competition. Generic drug prices are going down every year. It is the only area of reduced costs in the Health system.

The Government of Newfoundland and Labrador has not completed a review on the potential unintended consequences of this policy and does not have any information that rural and inner-city independent pharmacies can survive this cut to revenues.

Economist Dr. Wade Locke believes that a complete study should be undertaken before this policy is adopted – including developing an optimum model for Newfoundland and Labrador considering – demographics, geography, services, and pricing.

Tuesday, March 13, 2012

Independent Pharmacy Identifies More Savings for Government

How about $800,000 a month? Next Up Crestor - Where's the Minister?

It is now widely believed that the generic version of Crestor (another cholesterol drug) will be available for the market by April 2012. Great for the health care budget.

Crestor was the the most costly drug in Canada last year coming it at $875,000,000.

Newfoundland and Labrador's portion of this was over $19 million.

When the generic is released it will cost approximately half of this amount or over $800,000 a month savings.

If we continue down the same path used for introducing new generics - we will waste over 3 million dollars.

Just imagine the savings.

Now this is a heads-up to the Minister of Health, the Minister of Finance, and the government.

Will they now deal with this problem?

Will the media or Opposition parties ask the questions?

CICPO sounds Alarm on wasted $$ in Health Care

More $$$$ lost from Health Care - Secret Committee

Another half million dollars down the tube as Newfoundland and Labrador takes 40 days longer to list new generic.

In this case Lipitor - a brand drug to help control cholesterol - came off patent protection in May 2010 - and should have been on our formulary by July 1 of 2010. Atorvastatin the generic version did not make our formulary until August 11 2010. This 41 day delay cost us close to half a million dollars.

More interesting in this case - it may very well have been delayed until December of 2010 - if the Council of Independent Community Pharmacy Owners did not directly advise the Department of Finance of this problem.

That would have cost close to 2 million dollars.

Since that time the situation has not been corrected and we continue to lose millions of dollars.

This is the second example of wastage.

Where are the questions?

Where is the media?

These numbers can be independently verified.

Why are drugs available in our hospitals but not available at the retail pharmacy?

Here is another half million for surgeries to remove excess skin or quicker MRI's. 

Friday, December 2, 2011

Judge orders Government to Pay costs over delay in Case


Judge orders government to pay costs over delay in case
The Telegram
Lawyers Brad Savoury (left), representing the Council of Independent Community Pharmacy Owners and Rolf Pritchard, representing the provincial government, are shown in Newfoundland Supreme Court this morning. — Photo by Deana Stokes Sullivan/The Telegram
Published on December 2, 2011

Chief Justice David Orsborn didn't seem impressed this morning that the provincial government was late filing its court documents in response to an application from the Council of Independent Community Pharmacy Owners (CICPO), challenging sections of the Newfoundland Pharmacy Act and regulations.
The case was scheduled to be heard today in Newfoundland Supreme Court, but was postponed until Feb. 2 because government was late filing its response and affidavits.
Lawyer Brad Savoury, representing the pharmacists, said he only received some of the documents this week.
Both sides appeared in Newfoundland Supreme Court Sept. 27 and were given timelines by Justice Richard LeBlanc. The council was given a deadline of Nov. 17 and government Nov. 24 to file documents with the court.
Rolf Pritchard, lawyer for the province, said there was a snowstorm on Nov. 24 and there were other complicating factors, including notice having to be given to the federal attorney general.
Orsborn noted that government had two months to file its documents. Because of the delay, he ordered that costs associated with today's proceedings will have to be paid by the provincial government.
CICPO’s application challenges a provision in the province’s Pharmacy Act that allows the Pharmacists’ Association of Newfoundland and Labrador to negotiate financial contracts with government on behalf of the independent owners and a recent amendment to the Pharmaceutical Services Administration regulations that extended the notice period from 30 to 120 days to opt out of the provincial drug program.

Saturday, November 12, 2011

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?”

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Wednesday, August 31, 2011

Minister Marshall just moved Negotiations to the Court Room

As a result of the discussion found below - the CICPO will be proceeding to court.

Yesterday on Vocm's Back-Talk with Paddy Daly - Minister Tom Marshall called to discuss one subject - the pharmacy issue.

Below please find a transcript of the conversation:

PHARMACISTS NEGOTIATIONS: "Finance Minister Tom Marshall" is calling as Minister of the Public Service Secretariat to talk about negotiations with the Pharmacists Association of Newfoundland and Labrador.
Tuesday, August 30, 2011  02:19PM
VOCM - St. John's


PADDY DALY: Let's begin this afternoon and speak with the MHA for Humber East, the Minister of Finance, President of Treasury Board - Tom Marshall. Minister Marshall you're on the air.
  
MINISTER TOM MARSHALL: Great. Good afternoon Paddy.
  
PADDY DALY: Good afternoon to you sir.
  
MINISTER TOM MARSHALL: Paddy I'm calling you in my capacity as the Minister responsible for the Public Service Secretariat.
  
PADDY DALY: Okay.
  
MINISTER TOM MARSHALL: The Public Service Secretariat as you know is the institution in government that negotiates major contracts you know, the labour agreements when collective bargaining comes up and also the agreement with the doctors.
  
PADDY DALY: Right.
  
MINISTER TOM MARSHALL: So the Public Service Secretariat is now involved with health and community services in conducting negotiations with the pharmacists, the group called PANL - the Pharmacists Association of Newfoundland and Labrador.
  
PADDY DALY: Yes sir.
  
MINISTER TOM MARSHALL: We want to negotiate a new agreement and PANL is at the table and they have committee called the government relations committee which has a mandate from their board of directors to negotiate a contract on behalf of members that are involved in the pharmacy retail business.
  
PADDY DALY: Right.
  
MINISTER TOM MARSHALL: So there are three PANL members at the table, the chair is an independent pharmacist, one of the other members is also pharmacist and the third one is a former independent pharmacist. They are there now and they have advised me that they're holding a seat available at the table for CICPO which is the Council of Independent Community Pharmacy Owners.
  
PADDY DALY: Now CICPO will say to that Minister Marshall that that government relations committee has not teeth or say when it comes down to the final ratification or acceptance of negotiations, they bring it back to the board of PANL - a 9 person board with only one independent on it, Mr. Rick Elliott who owns a host of pharmacies so it's not considered the same small business independent that the others at CICPO will call themselves so they give no weight to those independents on that government working relations committee.
  
MINISTER TOM MARSHALL: Well I can say that there are two independent pharmacists taking part in the discussions and the seat is being held for CICPO unfortunately CICPO has refused to participate in the process and there's nothing that I can do about that. We want to negotiate an appropriate contract and the way you do that is sit down and negotiate at the table, negotiations started on August 16th that was the first meeting there have been 2 more sessions since then and the process is continuing so it's not appropriate to negotiate in public - we're going to carry out the negotiations in private as is the normal case and therefore will make no further comment while a negotiations are ongoing.
  
PADDY DALY: So we won't hear from the government any further on the independent pharmacy issue or the generic drug pricing?
  
MINISTER TOM MARSHALL: We will carry out the negotiations with PANL's committee as I said, there is a seat at the table - PANL tells me they have a seat at the table for CICPO if they choose to attend but we will carry out the negotiations and will make no further comment while negotiations are ongoing.
  
PADDY DALY: Minister Marshall, not to act privy to those negotiations but do you, yourself see the benefit in getting all the information required to make a good decision on this important policy to have a sit down with CICPO as they have obviously made no bones about it - they're not going to sit down with PANL, they have no interest in going through this process without their voice being heard as a group, a recognized group of CICPO. Do you see the benefit of sitting down with them?
  
MINISTER TOM MARSHALL:The...we are aware of CICPO's issues; we are not negotiating with CICPO we are negotiating with PANL, there is a seat at the table for CICPO. They are refusing to take that seat. That's most unfortunate but there is nothing I can do about that. PANL is a group that government has recognized in the past we've negotiated contracts with them in the past and will continue to negotiate with them again, CICPO has a seat at the table. They have chosen not to participate.
  
PADDY DALY:I understand that position from the government and I hear you loud and clear Minister Marshall, this is the last we'll hear from the government on the airwaves or on the newscasts regarding these negotiations. I am sure we will hear a reaction from CICPO this afternoon but we appreciate you making the government's position here on the programme today.
  
MINISTER TOM MARSHALL:Great. Thanks Paddy for giving that opportunity.
  
PADDY DALY:All the best, Sir.
  
MINISTER TOM MARSHALL:Bye now.
  
PADDY DALY:Bye-bye.

As a result of this discourse - the CICPO is now proceeding to court to challenge the Pharmacy Act regarding the mandate of the Pharmacists Association of Newfoundland and Labrador.


The irony is that the words of the Minister could not have stated our case more clearly.

The filing is expected by early next week and will be posted here.