Bitter pill of bills at pharmacy

Chemists and health boards at each others’ throats like ‘rottweilers’, report Cate Broughton and Selina Powell.

Sick New Zealanders are being hit with illicit extra charges for prescription medicines as pharmacists wage a no-holds-barred fight with the Government.

Pharmacy owners say inadequate funding from district health boards is forcing them to make a loss on some medicines.

This has led some to breach their contracts with the boards by adding a surcharge, in order to pass the costs on to their customers.

Pharmacists are allowed to add charges only for medicines from specialists, those not fully subsidised, and additional services such as receiving a faxed script.

But pharmacists say adding between 20 cents and $1 per item is the only way they can avoid losses on prescription items.

Tensions came to a head in December when pharmacy owners in Nelson and Christchurch were taken to mediation for contract breaches.

Des Bailey, owner of the Selwyn Village Pharmacy in Christchurch, said the DHBs ‘‘came after us like rottweilers’’ after about five months of the extra charges.

He added about 20 to 30 cents to each item and said no customers complained.

The pharmacies stopped the practice after the DHBs agreed to develop a new funding model by July 1.

But Bailey said many would consider returning to surcharges if they were not happy with the changes.

General manager of community pharmacy for DHBs Carolyn Gullery said pharmacies received $37 million in medicines funding this year and she expected the figure to reach $39m-$40m next year.

Funding had kept up with the value of medicines but was mostly going to a small number of pharmacies dispensing more expensive drugs.

‘‘So, the model is not working . . . it’s not the amount of money going in, it’s the distribution – and that is what the task force has been working on.’’

A revised model being approved this week would give most pharmacists more funding, she said.

Bailey said he hoped the new deal would end the dispute but was not confident it would.

‘‘I think pharmacy owners will be watching the first of July very carefully and will make a decision after that.’’

The model is not working . . . it’s not the amount of money going in, it’s the distribution. Carolyn Gullery General manager of community pharmacy for DHBs