As a result, the Independent Pharmacists of Ontario (IPO), an advocacy group based on Timberlea Blvd. in Mississauga, has launched a province-wide campaign to inform residents about the uncertain future of independent pharmacies in Ontario.

"Business has been hurting in the last few years," said John Girgis, IPO's vice-president and owner of Apple Hills Medical Pharmacy in the city's east end. "We've lost many patients as we've had to juggle increased costs, reduced profits, and new reporting requirements that mean less time with patients."

The city's remaining 76 pharmaceutical owners claim their businesses are struggling, thanks to recent regulatory changes made by the Ontario government in the form of Bill 102.

Girgis said several independent pharmacies in the city have been forced to sell out to a big chain or close up shop for good.
Many patients are feeling the effects as well, with less face-to-face time with their pharmacist, shortened store hours, cuts to home delivery, and in some cases, the loss of their neighbourhood pharmacy.

Bill 102, Ontario's Transparent Drug System for Patients Act, was introduced in 2006 as part of the government's plan to reform the provincial drug system and deliver better value.

The government plan is expected to save taxpayers up to $277 million per year. These savings will be reinvested into the provincial drug system to support improved patient access to drugs, according to the government.

But the Bill has had a "negative impact on the sustainability of small, independent pharmacies," according to the IPO.

Before Bill 102, pharmacies were allowed to mark up drugs by 10 per cent over what they paid for them. Now the government has cut that to eight per cent and also allowing the wholesalers to charge a 5.6 per cent surcharge on medication.

Also, the 8 per cent mark-up cannot exceed $25. The bill will also put a stop to generic drug companies giving money to pharmacies in exchange for carrying their products.

These changes will have little impact on the larger chain pharmacies such as Shoppers Drug Mart, Girgis said. They can offset the financial hit taken in pharmaceuticals with big sales in cosmetics, food and other departments.

"While these changes affect all pharmacies, independent pharmacies are especially impacted, as most of our income comes from their dispensary counter," Girgis said.

According to the Ontario College of Pharmacists registry, 14 per cent more pharmacies were sold and 20 per cent more went out of business in 2007 over 2006, numbers that are expected to increase in 2008.

Dispensing fees have increased only 89 cents over the past 15 years, leaving a huge gap (of about $7-$8 per prescription) between the actual cost of dispensing and pharmacists’ reimbursement covered by the public drug program.

The IPO campaign includes advertising and in-store materials that will appear in daily and weekly newspapers and independent pharmacies across the province, as well as a website (savemypharmacy.com).

It urges patients to contact their local MPP or the executive officer of Ontario’s Public Drug Programs to let them know they don’t want to lose access to the valuable health services their pharmacist provides.

“Independent pharmacists are small business owners and normally wouldn’t undertake an advertising campaign, but we really felt we had no other choice,” said IPO president Ben Shenouda. “We simply cannot sustain any more losses and continue to provide the health care services our customers rely on.”