The Competition Authority has published a guidance notice on the application of competition law to collective action by community pharmacy contractors, and other health professionals, when engaging with the Health Service Executive (“HSE”).

The guidance notice takes account of recent legislation, which provides that the Minister for Health and Children may reduce the rate of payment to health professionals (following appropriate consultation), and seeks to establish a future decision process acceptable to all parties concerned. The Authority also clarifies that pharmacy contractors are prohibited from entering into collective agreements in terms of price setting and collective withdrawal from community drug schemes.

As an alternative to collective negotiations, the Authority recommends the adoption of the “messenger model” for the setting of contractual terms and conditions between pharmacy contractors and the HSE. Under this model, a third party – the “messenger” – obtains from each pharmacy contractor, individually, the level of fees that the contractor would require from the State to provide the service. The messenger provides this information to the State, which it uses to devise a fee scale for the reimbursement of contractors that will secure the desired level of participation in the HSE scheme. All communications between the messenger and pharmacy contractor remain confidential vis-à-vis other pharmacy contractors. Each pharmacy contractor would then be offered a revised contract by the HSE, which the pharmacy contractor, again individually, must choose to accept or reject.