The Government gets its Way and YOU PAY

Outside of the spectacle most PC MHA's displayed in the House of Assembly last week - regarding the change in generic drug pricing - we have a much more serious problem.

That session of comedy revealed an underlying weakness in our political leadership.

I will let the reader decide if stupidity, corruption, indifference, or vindictiveness is the cause.

First let's agree on a few things.

The following are the essentials of life for people in our province:

1. Food
2. Shelter/Housing
3. Energy
4. Transportation
5. Health Care - including Prescription Medications

Today we will deal with number 1.

The price of food is of primary concern to the vulnerable people of our society. Individuals and families living on fixed low incomes are challenged every day to eat - let alone eat healthy.

Every week when one shops at the supermarket one notices the increase in the price of food. 

Food prices rose 4.1% on a year-over-year basis in February, following a 4.2% increase in January.

What is the response of the Government of Newfoundland and Labrador? Nothing! They rely on provincial food banks to hold people over from week to week.

Supermarkets receive rebates for purchases and particular shelf space so there is money in the system to reduce the price of food.

Considering that government (taxpayers) help low to no income people and families through income assistance - in part to buy food - then one would think government would direct food manufacturers to lower the price of generic food. Example - a tin of Carnation milk (brand) compared to a tin of Our Compliments milk (generic). Price of Carnation milk $1.50 and Price of Our Compliments $1.25. Therefore the generic tin milk is priced at 83% of brand. So if the Government of Newfoundland and Labrador lowered the price to 45% of brand then the generic tin of milk would cost 68 cents. Now we're talking.

Then if Dunderdale continued on and lowered the generic milk price to 35% of brand then the price would be 53 cents a tin.

Now if a person or child does not react well to the generic milk and finds that Carnation is the only one they can consume then a special authorization would be needed from government so that they can get enough money to pay for Carnation milk.

While the special authorization is approved - Mr. Sobey could give the customer the milk until the person is approved in 4 weeks. In either case Mr. Sobey would have to wait a week to be paid for the generic milk.

The question is will Tom Marshall, Kathy Dunderdale, and Susan Sullivan ask Mr. Sobey to sharpen his pencil?

For those of you not on any form of income assistance - your price would be lowered too. The Government of Newfoundland and Labrador when regulating prices - apply that price reduction to all citizens.

Do you think the supermarkets can afford to lower their prices?

For many medical conditions - a proper and healthy diet is essential. If the person is a diabetic - incorrect food choices could mean the difference between $1500 dollars worth of drugs a year and $15,000 dollars to keep the disease in check - including otherwise unnecessary stays in the hospital or by a worsening of the disease.

So the biggest problem in Newfoundland and Labrador today is the small independent pharmacy - the same people who day after day ensure people do not go without medications? The pharmacies that have a rotating credit for customers at about $20,000 per pharmacy - the pharmacies that are there whenever they are needed. The pharmacies who have provided free essential services to the people under their care.

Meanwhile the price of generic drugs are going down through competition and are reducing the price of drugs government pays for by replacing brands.

I watched a group of MHA's who were elected to represent people - stand up an speak about something they knew nothing about. The ignorance was incredible. Unfortunately - this means the decisions made are not going to bring the stated desired result.

The government chose this time not to listen to Dr. Wade Locke or the people who are experts in pharmacy services. This time they listened to unknown sources of information but were lobbied by brand companies.

Make no mistake - the money - if any - saved on the generic price changes will be gobbled up by oil and gas giants, mass retail and grocer corporations, and brand drug houses.

Make sure you have the number for your MHA handy as changes occur. It is he or she that has caused the problem.

Changing the face of pharmacy - is not the prescription you need.

Loblaw's - Dunderdale Government - What's Up?

Loblaw's just announced that it will be "buying" Zellers prescription files from 95 locations from across the country - excluding Quebec and British Columbia. The deal is worth 35 million dollars. This move is a result of the Target acquisition of Zellers.

First of all these are individual patient files and individuals in Canada have the right to CHOOSE the pharmacy they wish to deal with. Secondly - I would hope that each of these patients will be contacted to see if they WANT their prescription transferred to Loblaws.

Of course this is just a tip of the iceberg and what's hidden beneath is very cynical.

Most of you are aware that provinces in Canada are making legislative moves to lower generic drug prices through regulation. On the surface this appears like a good thing for the consumer - but is it?

To date the greatest impact of these changes have been to devalue - marginalize - and make vulnerable independent pharmacies in the country. For the record - independent pharmacies are the most trusted pharmacy  model and are renowned for personalized care and for the willingness to move into or establish in areas that do not have massive populations.

The Shopper's Drug Mart's - Loblaw's - and Lawton's of our marketplace are all waiting for these independents to become vulnerable so that they can consolidate the marketplace. The comments below found in the Canadian Business publication confirms this for the non-believer.

TORONTO - Shoppers Drug Mart Corp. (TSX:SC) is bracing for a profit squeeze from more reforms to generic drug sales next year, but also plans to seize the opportunity to buy out independent pharmacies that are even more vulnerable.

"It's the company that's absolutely best positioned to take advantage of opportunities that are going to (result) from drug reform and other macro trends in the Canadian market," Domenic Pilla, the new president and CEO of Shoppers told analysts on a conference call Wednesday.

Brad Lukow, Shoppers chief financial officer said the full impact of drug reform on Shoppers earnings has not yet been felt.

Legislative reform has yet to take place in a number of provinces, and a second phase will be implemented in Ontario and B.C. in April.

The new changes will expand the cheaper prescription regulations to cover all patients purchasing pills, either out of pocket or using insurance plans.

"That's the negative," he explained. "The positive is, we firmly believe there will be a strong opportunity delivered by drug reform that will allow us in a greater way to be a consolidator of the marketplace."

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This consolidation or any consolidation may be good for business but may not be good for the consumer - the patient. Once all the "consolidations" are complete what will we be left with? Well in rural areas - the reliance will be on drugs being delivered by mail - without a pharmacist or pharmacy you can visit in person. In inner-city neighbourhoods where many vulnerable individuals live - transportation will become a problem and worse the ability to make special arrangements for credit or to get the personalized service of help with compliance or accessibility forms will disappear.

Of course once the mass retailers get control of the pharmacy marketplace - prices will go up - way up. Let's take Loblaw's or Sobeys the consolidators of the food marketplace - have they achieved lowering the prices of your food?

When we had a local bread maker the Loblaw's and Sobeys of our marketplace offered 59 cent bread - now that that local manufacturer is gone and the jobs with it - how much is your bread?

If one looks closely at the Loblaw's - Zellers story they will notice the revelation of the new marketing strategy of the retail giant.

"Our goal is to be the number one nutrition and health destination in Canada," said Michael Lovsin, Loblaw senior vice-president, health and wellness.

"We feed more Canadians than any other grocery retailer in the country and with this comes responsibility to help them make healthier food and lifestyle choices. Our pharmacy business plays an important role in this effort." 

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So the deal is come to us and you can eat well and buy our drugs. 

If that is the claim - then Loblaw's will not hesitate to allow governments to regulate the food prices - as they are doing with prescription drugs to ensure that Newfoundlanders and Labradoians have the cheapest prices for food in the country right? They will not hesitate to reveal manufacturer rebates for groceries and give them up to ensure that all people can AFFORD healthy food - right? 

This grocery giant as with mass retailers like Shopper's and Lawtons rely on their front store - the cosmetics, the groceries, the paper goods for 50% or more of their revenues whereas an independent relies 90% on the dispensary for revenues. The more they get price reductions for drugs the more food, televisions, and makeup they sell. 

Ultimately they are using your health care as a loss leader. Governments are showing either extreme ignorance or are knowingly complicit to accommodate the wishes of the stock markets. 

At a time when our population is aging and the need for disease management escalates - programs designed to deliver medication and disease management will suffer the loss of these independent pharmacies and the collaborative care practices they have developed.

The Government of Newfoundland and Labrador has ignored the advice of 65 local pharmacy owners and the advice of Dr. Wade Locke - that before any radical changes are made to generic drug pricing - a thorough review of the potential consequences should be completed and a made in Newfoundland and Labrador solution is developed. 

On April Fools Day once again - Newfoundland and Labrador will jump headfirst into Upper Canadian based policy that will destroy our front-line health services - destroy local business - and once again throw rural Newfoundland and Labrador under the bus.

Newfoundland and Labrador pharmacy owners will not allow this decimation and will fight to protect the health care rights for the people they serve.

Patients in other areas of the country and in the USA are fighting the Walmart and Walgreen type presence and have supported a model of care that has been in our province for 100 years. 

These chains and retailers have only been here for 30 or so years and have done their best to lobby government to do their predatory work for them. To the credit of our people - they continue to stand behind their local pharmacy and the superior services and commitment to patient/community - they have always provided. The question is where does your MHA sit?

Next up - the mysterious NDP position that ultimately supports multinationals and turns away from rural local business and professionals - to the detriment of your health care.

Pharmacists' Awareness Week 2012

Please visit the Newfoundland and Labrador Pharmacy Blog as the Council of Independent Community Pharmacy Owners recognize their valued employees during Pharmacists' Awareness Week.

Press HERE

Is the Dunderdale Government Propping Up Shopper's Drug Mart?

This is a serious question for 2012. How much will it cost us to keep Shopper's Drug Mart shareholders happy.

If you are worried about the cost of prescription drugs PRESS HERE!

Are the News Media giving you the news You need? PRESS HERE!

What is Kennedy Hiding? Quite a Bit!

What Ministers Kennedy and Marshall are hiding will negatively affect health-care in rural communities and will harm those most vulnerable. PRESS HERE FOR COMPLETE INFORMATION