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."
_________________________________________________________
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."
________________________________________________________
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.
