The Impact of Bill 102

Independents are small business owners who are professional pharmacist’s first and business men and women second. Many are not schooled in business yet face the day to day pressures of all small businesses in Ontario. Unlike the larger chain stores, government regulations and changes that came into effect as a result of the TDSPA (Bill 102) have had a direct and immediate impact on their ability to make a profit and remain sustainable.

Here are some examples of how the new law has impacted the IPO membership:


Given their focus and reliance on income from the dispensary side of the business, the new regulations have had a real impact on the bottom line – on average, independent pharmacists have seen a 34% reduction in revenue.. The rebates affected by TDSPA were used by independents to offset the cost of clinics, counseling, delivery services and technician salaries. The result has been devastating. Many independents have seen significant drop in revenues and despite cutting back services, hours of operation and staff - they have already or are in the process of considering closing up their business. The bottom line is that they are in business and their primary business and source of revenue is providing prescriptions to Ontario residents.


Independent pharmacies across the province have had to make some difficult choices in order to keep their businesses afloat post-TDSPA. For many, that has meant the need to cut staff, reduce hours, or cancel vital services like home delivery. That can mean longer wait times for customers looking to get prescriptions filled, and less time for pharmacists to spend with patients.


Implementing Meds Check is a challenge and a net zero gain for pharmacists. Many Independents have to hire an additional pharmacist to run the counter to check and fill prescriptions while the primary pharmacist is meeting with a customer. The new program pays only $50 for each appointment of 30 minutes, yet the average appointments are running 40 minutes and even higher (up to 1 hour for some seniors). The average The average cost of hiring a part-timepart-time pharmacist is $50/hour. Pharmacists are not able to use any of their professional allowances to help offset the additional cost to offer Meds Check according to the 8 new categories resulting from the TDSPA (Bill 102). The net effect is that Independents are losing money on this new government venture.


The new regulations coming out of the TDSPA (Bill 102) have removed the Independents’ ability to use the rebates in a way to maximize profitability. The 8 new categories dictate to the pharmacists how they can spend their money. There is no other area of business operation in the province or the entire country that goes to this length. Larger chain pharmacies have the ability to work with the pharmaceutical companies to offset the loss of the rebates through their interaction with them in other provinces while independents do not have this option.            

Site by: Alavri Web Design