The Coalition continues to review and assess the potential impact of the final regulations announced by the Ontario government.  Notwithstanding the introduction of a transition fee that phases out over 3 years, a typical Ontario pharmacy will lose $200K in the first year, almost $300K in the second year and losses in subsequent years are expected to exceed $400K.

KEY FACTS

Reducing generic prices for both the provincial and private sectors to the regulated levels, will remove more than $900M in indirect funding from pharmacy in 2011-12
- Changes to generic drug pricing will also reduce direct funding, specifically mark-up, by over $100 million

Proposed government reinvestments through increased dispensing fees and professional services funding are inadequate 
- ODB dispensing fee increase, transition allowance and regional pharmacy fee increase only reinvests approximately $200 million
- Additional professional services funding will have even less impact given the time and cost to administer professional service programs

In response to these funding changes, pharmacies must cut costs by streamlining operations,eliminating uncompensated services and exploring new funding opportunities in the private sector
- The viability of pharmacies who are unable to significantly cut operating costs or produce new revenue are at high-risk

Join the TELEFORUM on Thursday, July 24 at 8:50 pm for up-to-date information, and visit the http://ontario.communitypharmacies.ca website for new POS materials.