Independent pharmacies take on large retailers

Mom-and-pop pharmacies have picked a fight with large medical aids, saying they should not be forcing members to use large, impersonal retail pharmacies.

The Independent Community Pharmacy Association (ICPA) said some medical aid providers limit the places where customers can purchase medication, favouring pharmacies linked to large retail groups such as Clicks or Dis-Chem, and want consumers to sign a petition demanding change.

If consumers use independently run pharmacies instead of the medical aid approved pharmacy, they may face co-payments.

But South Africa's largest medical aid provider, Discovery, has dismissed the allegations.

By law medical aids can ask members to use certain hospitals, pharmacies or doctors which they call designated service providers (DSPs).

In this way they are able to guarantee the pharmacy or doctor large numbers of patients in return for a discount.

The ICPA last month won an appeal at the Council for Medical Schemes, forcing the council to reconsider current regulation.

Discovery Health chief executive Jonathan Broomberg denied foul play.

"Discovery is contracted to more than 1800 independent community pharmacies which comprise 73% of all our DSP pharmacies."

Medical aid Bonitas said it has agreements with Dis-Chem, Pharmacy Direct, Clicks and Pick n Pay.

"The larger the pharmacy, the greater buying negotiation they have and the cheaper the medicine."

Bonitas said the decision is aimed at saving costs.