German reform "Cost 9,300 Jobs"

7 November 1994

The German health reform in the final phase represented by the health structure law has cost the country's drug industry 9,300 jobs, estimates the german drug industry association, the BPI. BPI president Hans Ruediger Vogel said that in 1994, two years after the new legislation was introduced, drug sales had risen 6.1%, but the level of 1991 had not yet been regained, and the job cuts had left only 117,906 pharmaceutical industry jobs in Germany.

Speaking at a Dresden seminar, Prof Vogel said that the political framework created by the narrow majority for the Kohl government, and the stronger influence of the Social Democrats in the parliamentary upper house, meant "nothing would happen" in social and health policy until the government changes. On health spending, he said health fund spending could be reduced significantly through savings in the hospital sector, but the Social Democrats had a vested interest in the hospital sector workforce, and he thought that it would be the drug industry which would continue to bear the brunt of savings measures.

The BPI has meanwhile been supported by pharmacists' organizations in rejecting the funds' call for more savings by setting up pharmacies as drug distributors and allowing direct delivery of drugs from medical practices. Prof Vogel said the current tripartite division between manufacturer, wholesaler and pharmacist worked for drug safety and protection of consumer interests, adding that the Bonn government has also rejected the proposal.

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