Pharmacy Daily | Ramsay defends procurement

RAMSAY Health has vigorously defended itself against allegations by the Pharmacy Guild that the company was inappropriately using hospital contracts and trading terms to source medicines for its pharmacies (PD yesterday).

A spokesperson for Ramsay Health Care told Pharmacy Daily the group "works with a large number of suppliers to provide procurement and merchandise ranging options for its franchisees, in line with many other franchise operating models.

"Ramsay negotiates trading terms with suppliers which support their member pharmacies in the development of sustainable businesses, in what is a highly competitive and fragmented retail pharmacy landscape," the spokesperson said.

The company noted that the Guild, which has contacted pharmaceutical manufacturers about Ramsay's procurement procedures, was "erroneous" in claiming that prices paid by hospitals for PBS medicines were not reported as part of the government's Simplified Price Disclosure arrangements.

"The Guild should be aware that consistent with the arrangements, it is only sales to public hospitals which are not subject to reporting obligations...Ramsay Health Care is an operator of private hospitals and therefore party to the rules of price disclosure," the company said.

MEANWHILE Ramsay also raised major concerns about the Guild's approach, which it said appeared to be "contrary to the intentions" of the Simplified Price Disclosure initiative in terms of helping to make the pharmacy sector sustainable.

"As the representative body which currently occupies the single seat at the negotiating table with the Commonwealth, we do not believe the Pharmacy Guild is appropriately representing all stakeholders, providers of pharmacy services and consumers of the Pharmaceutical Benefits Scheme," Ramsay said.

"This raises great concerns around whether the best interests of patients and consumer groups are appropriately advocated and represented by the Guild."