E-DRUG: Influence of "open ownership" of retail pharmacies (3)
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One year ago a new drug law came into force in Iceland. One of the main
changes by this legislation is the right of all registered pharmacists to
open one pharmacy each, thus abolishing the 200 years old system of
licensing where the Minister of Health by degree decided on the
geographical area each pharmacy should serve and appointed a pharmacist to
own and run it. By the new law the requirement that only a pharmacist may
own an interest in a retail pharmacy was removed. According to the law the
minister issues a licence to a person, who fulfils the following
conditions:
1. Is a pharmacist licensed to practice in Iceland.
2. Has worked as a pharmacist for three years.
3. Holds a comercial licence or has entered into an agreement with a party
who holds a comercial licence.
So this means that the owner of the pharmacy can either be the pharmacist
which is the pharmacy licence holder or somebody else which is the holder
of the commercial licence.
By the new law pharmacies were also given the possibility to compete in
service and prices (under a max. pricelimit). The new drug law has resulted
in ca. 20% increase in pharmacies more competition and lower drug prices
for patients and the social security fund. The last year we have also
experienced that individual pharmacies are forming chain drug stories to be
better able to compete with other pharmacies. Each pharmacist is still
responsible for his/her store, but can participate in a chain as described
before. The health authorities do not see this as negative for the time
being.
Einar Magnusson cand. pharm.
Director of Pharmaceutical Affairs
Ministry of Health and Social Security
Laugavegur 116
IS-150 Reykjavik Iceland
e-mail:einar.magnusson@htr.stjr.is
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