Pharmacists’ proposals can reduce medicine costs by 8-12%

In an open letter couriered to the Minister of Health on 01 December, United South African Pharmacies has requested a meeting to discuss its proposals to assist the Department of Health in reducing medicine costs and improving access to medicines for patients using public sector health services.

The proposals include using South Africa’s national community pharmacy network to fill prescriptions issued by public sector health services, as well as measures to eliminate perverse incentives and corruption which is adding millions to South Africa’s medicine bill each year. The letter follows the release of the ANC commissioned Roadmap for the Reform of the South African Health System conducted by the Development Bank of South Africa (DBSA) on reforming the state of South African healthcare.

Drew Horner, chairman of USAP says, “We welcome this report as it contains a recognition that the private sector can help with the provision of healthcare to all sectors of society. We want to help. We know we can help. However, we are not sure the Minister knows of our offer to help. We have therefore taken the unusual step of issuing this open letter to the Minister, and at the same time we have sent her our proposal directly.”

Open letter to Minister of Health

Dear Minister Hogan,

We were pleased to read the outcome of the recently released Roadmap for the Reform of the South African Health System conducted by the Development Bank of South Africa (DBSA) on reforming the state of South African healthcare. We consider the fact that it will be used as a guide when formulating future health policy as a step in the right direction. The findings of the report mirror our own roadmap on the future of private healthcare in South Africa.

We have been attempting to meet with you to discuss our own roadmap for the dispensing of medicines and we feel that you will find value in our proposal, as it indicates an 8 – 12% reduction in the price of retail medication. We believe our solution will help the public, the Department of Health – we realise that many state facilities are being stretched to near breaking point - and pharmacists struggling to keep their business going in the communities they’ve worked in for years.

The public

The proposals would eliminate the long queues now associated with supply problems being experienced. This would also alleviate the inconvenience of many who have to take off a days’ work each month to collect their medication, with its consequent loss of pay, and the high additional cost of taxis etc.

We believe our solutions would not cost the public a cent more, but will actually reduce public’s cost of healthcare.

More importantly, the convenience of collecting the medication at an establishment near your work place or home cannot be underestimated if you’re unwell.

The Department

Would eliminate corruption and theft, which we understand exceeds R1 billion per annum. It would also take enormous strain off the logistics of the clinics and hospital pharmacies, and would result in a far better spirit with its customers.

The Department would, in addition, be able to have at its disposal full and comprehensive data and statistics on which to evaluate and plan for the future.

The pharmacies

While this would not vastly improve the finances of the pharmacy, it would help towards overhead contributions in some measure, and would also fulfill the pharmacies’ social responsibilities. It is not often than one can look at a position and truthfully say that a win-win situation exists here.

We would appreciate a face to face meeting with you to discuss our ideas.

I would be happy to provide further information in this regard if so requested by your department.

We await your reply with interest.

Yours faithfully,

Drew Horner