Pharmacist wins court injunction on HSE drugs contract
A pharmacist today won a High Court injunction to stop the Health Service Executive enforcing a cut in its contractual payments for prescription medication.
Niall O'Sullivan feared he would have to sack 44 employees if he could not prevent the HSE from varying the terms of a contract with pharmacies.
On March 1, the HSE decreased the amount it reimburses outlets under the Community Drugs Scheme from almost 18% to 8%. Pharmacists are not due to feel the pinch of the move until the middle of April.
However, counsel for Mr O'Sullivan claimed the drop will force the businessman to close his five pharmacies across Limerick city.
Gerard Hogan SC said the cut would have a huge impact on the plaintiff's turnover.
"There is a real danger the plaintiff will not be able to serve for very long if these cuts take affect," he told the court.
"Protective notice has been served in the last two to three days which will effect 44 staff."
In his affidavit, Mr O'Sullivan said he and his wife Anu, a beautician, were facing insolvency.
"The impact of the proposed cut in remuneration terms and conditions, if given effect to, will be devastating and I do not believe that I can survive any length in business of the proposed cuts are implemented," he said.
Barristers for the HSE argued that Mr O'Sullivan had clear advance warning of the changes and said that, although the pharmacist claimed he would be in a loss-making situation, he would not furnish the figures needed to assess if his fears were well founded to the court.
Ms Justice Laffoy said the pharmacist had an arguable case.
She added that the balance of convenience lay in favour of the granting of a temporary injunction.
Three similar cases are at advanced stage in the Commercial Court, which are being backed by the Irish Pharmaceutical Union (IPU).
The IPU welcomed the decision. However, a spokesman for the union said it was regrettable that individual pharmacists have to resort to court action to have these matters resolved.
The spokesman said: “It would be far more preferable for the HSE to engage in meaningful negotiations with the Union and deal with matters in an orderly and constructive manner.”
“The union now calls upon the HSE to sit down with us in an attempt to find a formula to resolve all issues in this dispute.”
