Doc Morris CEO Advocates for Increased Competition in Pharmacy Sector

The CEO of Doc Morris, Walter Hess, recently engaged in an in-depth interview with the Funke Media Group, where he addressed the ongoing challenges faced by traditional pharmacies due to the rise of online pharmaceutical services. Hess emphasized that while online pharmacies have been providing competition through lower pricing, they are not responsible for the decline in the number of physical pharmacies in Germany.

According to Hess, the reduction in the number of pharmacies has been a steady trend since 2010, coinciding with an increase in prescription drug sales from EUR31 billion to EUR58 billion. He attributed the decrease in physical pharmacies to internal industry factors rather than the impact of online competition, stating that foreign EU online pharmacies account for about one percent of the market.

In discussing the controversial practice of offering Rx bonuses, Hess argued that such incentives are beneficial for society. He claimed that Doc Morris manages to achieve efficiencies that could help reduce healthcare costs, but current regulations prevent them from directly contracting with health insurers to share these savings. Instead, the company aims to provide direct bonuses to patients to alleviate their healthcare expenses.

Hess defended the provision of Rx bonuses by online pharmacies as a fair competitive practice, contrasting it with the regulations that restrict local pharmacies from offering similar incentives. He suggested that the current pricing structure for medications should be reformed, proposing a shift from a fixed pricing model to a maximum price system. This change would allow pharmacies to decide whether to offer limited bonuses to patients.

In summary, Hess's comments reflect a call for a reevaluation of the regulatory landscape governing pharmacies in Germany, advocating for reforms that could foster a more competitive environment benefiting consumers.