Issued by Department of Health
30 November 2005
The Department of Health has complied with the first part of the Constitutional Court ruling on the Medicine Pricing Regulations.
The Court identified a few minor defects in the regulations and specified changes that had to be made. The court said these defects can be easily remedied and it is not proper to set aside the whole set of regulations just for the few minor defects. The Court gave a deadline of 60 days from the date of the ruling (30 September 2005) for these changes have to be effected. The 60 day period ends today.
The medicine pricing regulations have been amended and the amended regulations were published on 11 November 2005 in Government Gazette No. 28214.
On the actual dispensing fee that may be charged by pharmacists, the Court ruled that the Pricing Committee should reconsider the current dispensing fee of 26% of the single exit price capped at R26. The Committee should provide reasonable opportunity for input and take into consideration the input made by all interested parties in determining the appropriate fee. While it was ideal to have a new dispensing fee within 60 days, the Court stated that more time might be needed to determine the appropriate fee.
The section of the regulations relating to a revised dispensing fee for pharmacists were not published since the pricing committee has not finalized this issue.
There have been difficulties in getting input on this matter before the initial deadline of 28 November 2005. The Department of Health has decided to extend the comment period on dispensing fee to 20 December 2005 to give pharmacists in particular an extra opportunity to make inputs on this matter.
The Department of Health is currently conducting a survey of the incomes and expenses of a dispensary. The questionnaires were sent to retail pharmacies throughout the country at the beginning of October. The Department also conducted workshops throughout the country to assist pharmacists complete the form.
Of the 2500 pharmacies in the country, only 150 responded to this questionnaire which is important in establishing the appropriate compensation for dispensing of medicines.
It is unfortunate that the retail pharmacists who have claimed that the dispensing fee is inappropriate and would lead to the closure of pharmacies have not taken the time to provide the necessary information to determine the dispensing fee.
We urge all retail pharmacists to comply the comply with the Constitutional Court ruling which directs that any information that may be required to arrive at an appropriate dispensing fee should be provided to the Pricing Committee.
The Department remains committed to setting a dispensing fee that meets its objective of making medicine more affordable, but also ensure that the country maintains a viable retail pharmacy industry.
Contact: Sibani Mngadi @ 0827720161