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Temuka pharmacist demands mediation
26 May 2010
Stalemate continues between Temuka Pharmacy and South Canterbury DHB as pharmacist Allan Campbell refuses to sign the national Pharmacy Services Agreement.
Mr Campbell says will demand formal mediation in the case by an independent mediator as the existing pharmacy contract provides for the same.
He claims he is losing at least $87,000 a year dispensing funded medicines due to discrepancy between what he pays the wholesalers and what government reimburses.
In a letter to Sector Services (formerly HealthPAC) detailing the level of dispensing fee and the pharmacy mark ups on medicines since 1997, Mr Campbell says dispensing fee has increased by merely 23 cents over the past nine years, while the wholesale mark up on medicines has remained 4% to 5% over and above the Pharmac scheduled price.
“That does not even cover the inflation,” he says, while producing invoices from wholesalers now who charge him more than the reimbursed 4% to 5% on wholesale medicines citing increased costs.
Meanwhile, 5000 residents of Temuka and a few neighbouring regions continue to access funded medicine through Mr Campbell’s lone pharmacy in the region as the South Canterbury DHB has decided to let the existing contract roll over until final resolution.
“But that is of no use to me because it makes my position even more serious. The (revised) dispensing fee under the new contract is $5.30 whereas I am still on $5.16 under the old contract,” Mr Campbell says.
When contacted for comment, SCDHB chief executive Chris Fleming in a written statement said while the “difference of opinion” persists, discussions are continuing between the DHB, Mr Campbell and his advisors.
“To this extent, it would be inappropriate to make any specific comments about the status of the issues raised,” he said.
Without elaborating on the possible solution to the stalemate, he says the DHB is focussed on ensuring that the residents of Temuka are able to access their supply of subsidised
medicines on an ongoing basis.
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