New Myth/Fact: Most Ontario Pharmacies are Small Businesses
The Claim
In its public and media relations, the Ontario government is positioning community pharmacy funding cuts as part of a “battle” with “big drug chains”. Briefed by an Ontario government official, Adam Radwanski of the Globe and Mail wrote on December 13, 2009:
The government’s challenge will be to convince Ontarians that its quarrel isn’t [...]
Myths & Facts – Ontario’s Growing Pharmacy Funding Gap
The Claim:
The Ontario government has said that pharmacies have stable and predictable revenues, and that professional allowances are used “inappropriately”.
The Facts:
There is a large and growing funding gap. It is the difference between the cost to dispense medicines to those covered by the Ontario Drug Benefit program (ODB) – and the direct compensation provided [...]
Myths & Facts – Professional allowances and the ODB funding gap
Myths & Facts – Professional allowances and the ODB funding gap.
The Claim:
The Ontario government has said professional allowances are used “inappropriately”.
This is a critical issue, because it suggests that the Ministry of Health and Long-Term Care does not understand the role of professional allowances under the current funding model. Since the Ministry is currently [...]
Do pharmacies have stable and predictable revenues? No.
The Claim:
The Ontario government has said that pharmacies enjoy more stable and predictable revenues than other industries.
In a presentation on the province’s drug system on July 10, 2009, the government said “Unlike other industries, pharmacy… [provides] stable and predictable revenue as compared to most other industries.”
The Facts: 
The value of dispensing fees – pharmacies’ [...]
Does Ontario have too many community pharmacies? No
The Claim:
The Ontario government has indicated that the province has too many pharmacies per capita.
In a presentation on the province’s drug system on July 10, 2009, the government said “We support more pharmacies per capita than many other developed countries.” The presentation included a slide that noted Ontario has more pharmacies in [...]
Do Ontario Pharmacies have high margins? No.
The Claim:
In a presentation on the province’s drug system on July 10, 2009, the Ministry of Health and Long-Term Care indicated that “Ontario pharmacies have high margins relative to the broader retailing sector, on average.”
The Facts:
Ontario community pharmacies do not have high margins in comparison to other retailers.
In fact, gross margins in pharmacy [...]