Playing For Profit

Retail drug companies in Ontario are crying foul. They are most definitely not pleased that they're being targeted as a mechanism whereby the province will be able to decrease its pharmaceutical costs through legislating a ban on subsidies paid to pharmacies by generic drug manufacturers. It doesn't much help their argument of unfair play, that Ontario is distinguished as being the place in the developed world where generic drug prices are steepest.

If they're incapable of regulating themselves to be satisfied with a moderate return on their products and services, then it is not entirely unreasonable that a province, struggling to keep up with rising medical-hospitalization costs - with pharmaceutical costs taking up one huge bite out of the provincial budget and steadily rising - then perhaps it was time the province stepped in to encourage a little bit of enforced moderation.

Consumers groups feel this has been long in coming. The Canadian Cancer Society, the Canadian Association of Retired Persons, and the Ontario Federation of Labour stand behind the Ontario Health Minister's announcement on behalf of her government. This is not the first time the province has attempted to reign in rising drug costs, and the same resistance loomed large then as it is now.

And despite cries of doom, the industry continued to thrive, so much so that additional outlets were opened. It is the small, independent pharmacy that may very well see its profit margin becoming uncomfortably slimmer, even though Health Minister Deb Matthews claims to be willing to offer druggists more concessions.

But it is the large chains that have the clout to hire high-priced public relations firms to argue their case, and to pay for full-page advertisements in newspapers to impress upon consumers just how much they are set to lose, should the government proceed with its plans.

The advert for Shoppers Drug Mart, for example, aimed at its customers starts with the legend: "We agree with the need to reduce health care costs, including the reduction of generic drug prices, to a level that is manageable for sustaining the aging populations needs."

BUT they take exception to the current dispensing fee and the limited increases in such fees, warning that the cuts on the near horizon "will directly impact the care and services you have been receiving from your community pharmacies".

It's not too late. Act today. Community Pharmacy works. Pharmacists fill an important gap in providing accessible health services and advice when you need them most. Act now to protect your community health care. Visit stopcuts.ca to send a message directly to your local Member of Provincial Parliament to reverse the Government's decision: Shoppers drug Mart.

Not-too-subtle innuendos of impending catastrophe! Act now, to stop the Ontario government from its disastrous course.

Well, the real course of disaster is to continue on the way we have, with increasing numbers of highly-prescribed drugs coming off patent. And the generic market set to boom even more. Of course it isn't just pharmaceuticals that are costly to the universal health system, but they're representative of a huge bite of it. So, one thing at a time. And right now, the target is generic drugs.

After all, the federal Competition Bureau has zeroed in on those rebates - paid by manufacturers to make certain their products are stocked - as bearing the chief responsibility for generics soaring in cost higher than most other countries. The push-back is fierce, however; the large drugstore chains are not willing to submit that readily to losing their enhanced incomes for fair play.

Take Rexall, as an example.

Rexall, which includes Pharma Plus, has roughly 250 outlets in the province. It has embarked on a response to the new venture in cost-cutting by freezing hiring at its headquarters, and eliminating its pharmacy student and intern programs throughout the province.

Take that. And take more: Shoppers drug Mart with its 600 retail outlets is announcing a cut in its operating hours. Where? Well, um, in Health Minister Matthews' hometown of London. Nowhere else? Well, they've got to start somewhere, right? Forcing pharmacies to charge 25% of brand-name products is extremely unpopular, as we can see.

The industry has even stooped to threatening to sue Minister Matthews for having the gall to mention "abuses" by its members. Premier McGuinty, attempting to lower the heat, put the matter into perspective: "...fact is we're paying 25 to 75% more (for generic drugs) than ... other places around the world. "So we think we should be getting a better bargain for Ontario families."

That would be Ontario families who pay their taxes to an already-struggling province given the current economic slowdown, rising unemployment, and an unfortunate deficit, and who have been warned that the province could face, before long, having to pay out almost half of its revenues to hospital and medical care costs.

There are 3,306 retail pharmacies in Ontario. There are far too many of these super-stores popping up everywhere. Seemingly one to a city block. Shoppers Drug Mart reported a profit nudging over a half-billion dollars in 2009. That isn't too paltry.

But to demonstrate just how prepared they are to fight this misery being forced upon their bottom line, they're promising no more customer advice, and just forget about those health education clinics. Those 'health education clinics' were great public relations events, were they not?

And perhaps consumers could do a little resisting of their own, like boycotting those retail pharmacy outlets that refuse to give the advice that comes along with dispensing pharmaceuticals...?