Bill Acheson, of Acheson’s Pharmacy in Harriston, has concerns with how changes to pharmacy regulations will affect the future of local pharmacies in Minto.
His letter to council stated that about 15 years ago, Ontario Pharmacists found that it was costing more to fill a prescription than the dispensing fee being paid by the Ontario Ministry of Health.
Increases were not forthcoming, so pharmacists formed buying groups, for buying certain generic drugs, from specific generic drug manufacturers, and they received a rebate which helped bridge the gap between expenditures and receipts.
That income became a larger and larger portion of the pharmacy income as time went on because the dispensing fee paid by the Ontario government was rising more slowly than costs.
“I think we’ve had a 56 cent increase in dispensing fees in the past 20 years.”
He said working with the generic drug companies and making use of the rebates was intended to be a stop-gap measure.
But now, it represents the majority of profit for many pharmacies in Ontario.
Now, Acheson said, the Ministry of Health has proposed to take that income away from pharmacies and spend it elsewhere.
That leaves Ontario pharmacies in a precarious financial situation, “particularly smaller pharmacies such as the two we have in Minto.”
“It’s partly our own fault because we should have pushed for the increases earlier. And we acknowledge the whole system needs revamping, but the changes are akin to taking away a dollar and giving us back 15 cents.
“There are two pharmacies in Minto, and they are both at risk.”
On a personal level, Acheson said he is turning 66 this year, and will be looking for a young pharmacist to take over the business in a year or two.
“But as things are, I don’t think anyone is going to be interested if it is not profitable, or only marginally profitable.”
Mayor David Anderson said it is a complex issue, and there are numerous sides to the story, and he believed there needs to be room for negotiation.
Acheson said there has not been a lot of meaningful negotiations over the past six months.
When asked if there is an association, Acheson commented that independent pharmacists still comprise over 50% of the Ontario pharmacist association.
Anderson said one of the concerns he has seen is the cost of the generic drugs.
“We acknowledge the system needs to change, and we’re willing to do our part. We keep trying to negotiate but we’re not getting anywhere.”
He said the campaign was to get the government’s attention. “Essentially over the past 20 years, the generic drug companies have been subsidizing Ontario’s health care.”
Deputy-mayor Judy Dirksen was impressed with the lobby efforts, but had heard changes were being proposed.
Acheson said the deadline was May 15.
“Hopefully, now they will talk,” Acheson said.
