Thousands have signed a petition to support local pharmacies in the face of cuts.
The Drumheller Mail reported local pharmacists’ reactions to the announcement that the Alberta Government would be cutting generic drug prices from 35 per cent of brand names to just 18 per cent in its March 27 edition. Ray Ainscough of Riverside Value Drug Mart says there is strong support from residents and politicians.
The signatures came mostly from 15-30 stores,” said Ainscough.
He adds the issue has been front and centre in the legislature and he appreciates the work the opposition has done to bring awareness to the industry’s plight.
Ainscough said the new drug plan has the potential to take away $400 million from pharmacists, and while the Alberta Government has taken to advertising that the plan will save residents money, he believes it will end up more expensive.
“In the long run it is going to cost everybody money,” said Ainscough. “Once you get to a certain point and costs get to be so much, many generic companies may decide not to do business with Alberta.”
He says if other companies pull out, that may leave a situation where there is only one generic supplier, and they will be able to simply name their price. Another scenario is if there are no generic suppliers.
“If it is not affordable for any generic company and they pull out, all that is left is the brand names and prices will go up,” he explains.
Arson Gincher opened the local Shoppers Drug Mart four years ago. He says the government has taken away with one hand, and is offering to give back with the other, although just how much has not materialized.
“The government already did change and reduced revenue in one way, and showed they would open a gate for revenue in a different way, but the gate is not fully opened yet, it still needs to be opened,” said Gincher. “The effect will be determined a little bit later How much will service change?”
“There is no balance yet, and I think it is up to us to keep working and hoping there is revenue-for-revenue.”
Gincher says at this point he understands his business will be losing some revenues but at this point he has no plans to change hours or staffing levels.
The most frustrating part for Ainscough is that he feels there was no consultation with pharmacists.
“It has been unilateral all the way through. There has been no negotiations,” said Ainscough. “If they talked to us we could make savings for all Albertans, but when you make a unilateral decision without consulting anybody, and you are not the experts in the field, you are going to have problems.”
The new plan was expected to be in place on May 1, however Ainscough says there are still many questions.
“If you have these decisions to make, let us know so we know how to deal with them. We don’t know, the generic companies don’t know, the wholesalers don’t know …the government should know you can’t change everything in a day. There is a process.
“They haven’t thought it through, they haven’t asked us. They are just cutting a deal,” said Ainscough. “If you are going to subtract that much from us there has to be a mechanism to replace it.”
