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26/03/2003
Pharmacy deregulation report rejected by NIO Minister
An Office of Fair Trading (OFT) report calling for control arrangements for Health Service pharmacy contracts to be abolished has been rejected by NIO Health Minister Des Browne.
The OFT report, which was published on January 17, recommended abolition of the regulatory system of control introduced in 1987 and also link the number of pharmacies as closely as possible to the needs of local populations.
Mr Browne said that deregulation was "not a realistic option and is not, therefore, the way forward for Northern Ireland".
He added: “It has been put to me that deregulation would run the significant risk of reducing access to pharmaceutical services, particularly in rural areas. There may well be a reduction and, indeed, a removal of local services in some areas to the detriment of the infirm, the elderly and those less well off in our community. I cannot allow that to happen."
The Minister said that he had "no fundamental opposition to the concept of deregulation", but added that the report "simply did not explore" other alternatives for encouraging competition, quality and value.
For deregulation to be acceptable, the Minister considered that there needed to be "compelling evidence that the present control system for the Health Service was deficient" before he could consider the merits of the OFT recommendation to deregulate as the necessary solution.
“I am disappointed that the OFT report contains hardly any specific information and analysis in relation to Northern Ireland," he said.
"Additionally, the report is primarily focused on competition issues and does not take account of Health Service issues of patient care. Any radical change such as deregulation needs to be predicated on a strong, locally relevant evidential base with a recognition that patient needs are paramount in a situation where around 80% of pharmacy business is contracted through the Health Service.
The health department said it would continue to negotiate a new contract for community pharmacies. The main thrust of these negotiations will be the implementation of the new Community Pharmacy Strategy.
(GMcG)
The OFT report, which was published on January 17, recommended abolition of the regulatory system of control introduced in 1987 and also link the number of pharmacies as closely as possible to the needs of local populations.
Mr Browne said that deregulation was "not a realistic option and is not, therefore, the way forward for Northern Ireland".
He added: “It has been put to me that deregulation would run the significant risk of reducing access to pharmaceutical services, particularly in rural areas. There may well be a reduction and, indeed, a removal of local services in some areas to the detriment of the infirm, the elderly and those less well off in our community. I cannot allow that to happen."
The Minister said that he had "no fundamental opposition to the concept of deregulation", but added that the report "simply did not explore" other alternatives for encouraging competition, quality and value.
For deregulation to be acceptable, the Minister considered that there needed to be "compelling evidence that the present control system for the Health Service was deficient" before he could consider the merits of the OFT recommendation to deregulate as the necessary solution.
“I am disappointed that the OFT report contains hardly any specific information and analysis in relation to Northern Ireland," he said.
"Additionally, the report is primarily focused on competition issues and does not take account of Health Service issues of patient care. Any radical change such as deregulation needs to be predicated on a strong, locally relevant evidential base with a recognition that patient needs are paramount in a situation where around 80% of pharmacy business is contracted through the Health Service.
The health department said it would continue to negotiate a new contract for community pharmacies. The main thrust of these negotiations will be the implementation of the new Community Pharmacy Strategy.
(GMcG)
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