The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

PRIVATE pharmacies have seen a reduction in profits since the government’s price control regulations that were meant to bring economic relief to Bahamians were introduced late last year, according to the Bahamas Pharmaceutical Association’s (BPA) president yesterday.

Despite this, Shantia McBride told The Tribune there has been no major negative impact on their businesses and that most pharmacies in the association have been complying with the policies since reaching a compromise with the government in November.

“None of our pharmacies have indicated any issues whether with the government or with price control departments,” she said.

“So, we regularly seem to be complying so we don’t have any issues. We’re just carrying on smartly.”

 The BPA and the Davis administration traded-off higher mark-ups for the industry with an expanded list of price-controlled items that has increased by ten medications.

 Pharmaceutical wholesalers and retailers now have one set mark-up across the board, at 20 percent and 40 percent respectively, for all price-controlled items in a move that will also simplify the structure.

 This places the price control mark-ups for wholesalers at a slightly higher level than the government was initially proposing, between 15-18 percent, but the association had warned the initial mark-ups were too low, and that many of the smaller pharmacies would be forced to shut down because they would be operating at a loss.

 This led to weeks of negotiations with the government over a revised strategy to implement the expanded price control measures.

 The regulations are supposed to come to an end this month after the government revisits the changes.

 When asked about the policy’s impact on business, the association president said while operators have seen a reduction in profits, it has not reached the point where businesses need to cut back on staff or shutter their doors.

 “Our agreement was done on the basis of the timeline given and with expectations that, as we would have indicated, we do not wish for any of our stores to close so no negative impact in terms of closures of any stores,” she told The Tribune.

 “There has been, of course, a reduction in profits, but not a negative impact, you know, to businesses … so no negative impact in that regard.”

 With the regulations set to end soon, she was also asked if the association was anxiously waiting for the deadline to arrive.

 However, she replied: “I don’t think we’re waiting patiently. I think we are just operating on our norm. So, right now, we’re not focused on it because, like I said, it didn’t negatively impact us.”

 She added: “There haven’t been any conversations since the last so it is what was indicated which is this month so no communication yet in that regard. We’re just speaking on continuing with our public education, what we wish to do between the government and the association.

 “But we’ve heard nothing new in terms of the dates being changed so it’s this month (the changes end).”

 As for whether the association would be receptive to the government extending the deadline, Ms McBride only said operators would be open to meeting officials on the issue.

 “We’re receptive to communication and sitting down to the table with the government and understanding what the long-term effect (would be) because once it stops, we did still make a commitment with the government for (providing) economic relief generally,” she continued.

 “It may not be with our margins. It may be other things so we have other discussions that we’re having with them.”