Independent Pharmacies served another Blow by Dunderdale Govt.

New Drug pricing policy for April of 2013 will continue to erode the viability of independent pharmacies in Newfoundland and Labrador.

These changes are subsequent to the (non)negotiations held last year with provincially chosen pharmacy groups - resulting in an imposed contract. The remuneration was supposed to reflect that generic drug prices would be reduced to 35% of brand.

The Dunderdale government has now signed on to a reduction for 6 generic drugs to a price of 18% of brand. These drugs represent approximately 20% of the pharmaceutical dispensing. Therefore the "contract" reached last year ties pharmacies to dispensing fees that will not in any way offset these additional reductions.

Further pharmacies, physicians, and other health care advocates are already warning that drug shortages are impacting patient care. This new reduction in price will increase the likelihood that drug shortages will become more acute.

The CICPO is holding its AGM this weekend - after which a News Release will be distributed. This year's Annual General Meeting will focus on results presented by Dr. Wade Locke regarding the future viability of the independent pharmacy model. Dr. Locke has completed the in depth study over the past 6 months - and it will be made public by month's end.

The future for independent pharmacy both in rural communities and inner-city neighbourhoods will in large part depend on the willingness of government to realize the value and potential of these businesses and primary health providers.

More to follow....

Bad Prescription for the People

The Government gets its Way and YOU PAY

Outside of the spectacle most PC MHA's displayed in the House of Assembly last week - regarding the change in generic drug pricing - we have a much more serious problem.

That session of comedy revealed an underlying weakness in our political leadership.

I will let the reader decide if stupidity, corruption, indifference, or vindictiveness is the cause.

First let's agree on a few things.

The following are the essentials of life for people in our province:

1. Food
2. Shelter/Housing
3. Energy
4. Transportation
5. Health Care - including Prescription Medications

Today we will deal with number 1.

The price of food is of primary concern to the vulnerable people of our society. Individuals and families living on fixed low incomes are challenged every day to eat - let alone eat healthy.

Every week when one shops at the supermarket one notices the increase in the price of food. 

Food prices rose 4.1% on a year-over-year basis in February, following a 4.2% increase in January.

What is the response of the Government of Newfoundland and Labrador? Nothing! They rely on provincial food banks to hold people over from week to week.

Supermarkets receive rebates for purchases and particular shelf space so there is money in the system to reduce the price of food.

Considering that government (taxpayers) help low to no income people and families through income assistance - in part to buy food - then one would think government would direct food manufacturers to lower the price of generic food. Example - a tin of Carnation milk (brand) compared to a tin of Our Compliments milk (generic). Price of Carnation milk $1.50 and Price of Our Compliments $1.25. Therefore the generic tin milk is priced at 83% of brand. So if the Government of Newfoundland and Labrador lowered the price to 45% of brand then the generic tin of milk would cost 68 cents. Now we're talking.

Then if Dunderdale continued on and lowered the generic milk price to 35% of brand then the price would be 53 cents a tin.

Now if a person or child does not react well to the generic milk and finds that Carnation is the only one they can consume then a special authorization would be needed from government so that they can get enough money to pay for Carnation milk.

While the special authorization is approved - Mr. Sobey could give the customer the milk until the person is approved in 4 weeks. In either case Mr. Sobey would have to wait a week to be paid for the generic milk.

The question is will Tom Marshall, Kathy Dunderdale, and Susan Sullivan ask Mr. Sobey to sharpen his pencil?

For those of you not on any form of income assistance - your price would be lowered too. The Government of Newfoundland and Labrador when regulating prices - apply that price reduction to all citizens.

Do you think the supermarkets can afford to lower their prices?

For many medical conditions - a proper and healthy diet is essential. If the person is a diabetic - incorrect food choices could mean the difference between $1500 dollars worth of drugs a year and $15,000 dollars to keep the disease in check - including otherwise unnecessary stays in the hospital or by a worsening of the disease.

So the biggest problem in Newfoundland and Labrador today is the small independent pharmacy - the same people who day after day ensure people do not go without medications? The pharmacies that have a rotating credit for customers at about $20,000 per pharmacy - the pharmacies that are there whenever they are needed. The pharmacies who have provided free essential services to the people under their care.

Meanwhile the price of generic drugs are going down through competition and are reducing the price of drugs government pays for by replacing brands.

I watched a group of MHA's who were elected to represent people - stand up an speak about something they knew nothing about. The ignorance was incredible. Unfortunately - this means the decisions made are not going to bring the stated desired result.

The government chose this time not to listen to Dr. Wade Locke or the people who are experts in pharmacy services. This time they listened to unknown sources of information but were lobbied by brand companies.

Make no mistake - the money - if any - saved on the generic price changes will be gobbled up by oil and gas giants, mass retail and grocer corporations, and brand drug houses.

Make sure you have the number for your MHA handy as changes occur. It is he or she that has caused the problem.

Changing the face of pharmacy - is not the prescription you need.

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?

Complete Investigation needed on Drug Costs

Will Dunderdale, Ball, or Michael investigate? $$$$ LOST!

We have now entered a time-frame industry people like to call the Patent Cliff.

Over the next 5 years residents of Newfoundland and Labrador as with all other jurisdictions in Canada and the USA should experience an extreme reduction in the price of essential commonly prescribed medications.

As these new generics enter the marketplace - our government should act immediately to replace the brand drugs on our formulary. This will save us tens of millions of dollars.

Unfortunately we still have a secret committee determining when our tax dollars will be used wisely.

If you can buy the drug in New Brunswick, Alberta, or Ontario - why not here in our province?

Why are our hospitals permitted to dispense drugs that our retail pharmacies cannot?

Why does our government pay brand prices when savings of 40 per cent and more are available?

Sue's Blog will layout some of the financial losses our government has allowed of our essential health care dollars.

We also need to discuss and understand if there are any potential conflicts within the secret committee that answers only to the Minister - and NOT the House of Assembly. We need to know if any member of the committee has any dealings with the drug companies - outside of the committee - and whether those dealings are commercial in nature.

Is it possible that any committee members - who have the power of recommendation to the Minister of Health - could use that power in commercial dealings?

Do the Brand Drug Houses lobby any of the committee members - in any way whatsoever?

You see something is not right here. We are losing tens of millions of dollars and nothing is being done about it. Sound Familiar?

Open and Transparent - right? Public Accounts - spending our money wisely right?

Where is the investigative journalism? Where are the NDP members on this - they are the champions of health care right?