British Columbia

Vancouver Eastside Pharmacy unfairly caught in government crackdown, owner says

The owner of Vancouver's Eastside Pharmacy says he is hurt after losing his licence in a government crackdown trying to root out irregular billing practices.

2-year audit sample found 40 per cent error rate in drug billing claims for Eastside Pharmacy

Alex Tam and his daughter Tiffany are devastated the province will not re-enroll their Eastside Pharmacy Ltd. in PharmaCare after audits found drug billing irregularities. (CBC)

The owner of a Vancouver pharmacy on the Downtown Eastside says he is 'hurt" after a being caught up in a provincial crackdown trying to root out irregular billing practices when it comes to drugs like methadone.

Clients of Eastside Pharmacy Ltd. on East Hastings Street now have 30 days to find a new pharmacist to fill their prescriptions, while Eastside's owner is adamant his pharmacy is not part of the problem.

"They are slandering me as a criminal," said 61-year-old Alex Tam. "I am not."

The Eastside Pharmacy on Hastings Street has been in operation for 25 years. (CBC)

For months, B.C. regulators have been raiding problem pharmacies and pulling PharmaCare licences so owners can no longer get taxpayer dollars for dispensing drugs.

PharmaCare pays for drugs for people on low incomes or with special medical needs.

The penalty is essentially a death knell for businesses who cater to Downtown Eastside residents with prescriptions for drugs like methadone.

Since July 2014, the province has not enrolled more than two dozen pharmacies in the program because of alleged violations ranging from filthy conditions to suspicious billing practices.

But Tam is adamant that this time enforcers have got it wrong.

"Very hurtful, very hurtful," he told the CBC from his pharmacy while his daughter and operations manager Tiffany Tam fought back tears.

"Tell us what we can do better," she said, shocked that the province is serious when it comes to not keeping them enrolled in PharmaCare despite Eastside being recognized for community service for the past 25 years, including a Queen's Diamond Jubilee medal.

"I've never lied or cheat or steal or either like that," said Alex Tam. "To label me that, I am so angry."

Alex Tam displaying his Queen Diamond Jubilee medal for community service. (Supplied)

The province says Eastside Pharmacy Ltd. is losing its licence because of more than $1 million in invalid or ineligible PharmaCare claims.

The organization audited a sample of drug billing claims from September 2012 to August 2014 and found "an extremely high error rate" of more than 40 per cent.

"We are very serious about making sure that particularly vulnerable patients are well looked after," said Health Minister Terry Lake about the crackdown. "That the taxpayer dollars are well looked after."

Tam says the errors in billing are an exaggerated estimate based on extrapolation from a small sampling and that any mistakes were due to innocent bookkeeping errors.

The pharmacy now has a new computer system and claims it has been in compliance with PharmaCare regulations for months.

"We've tried to be as reasonable as possible," said Tiffany Tam. "We're not asking for anything ridiculous, we're just asking to be given the opportunity to work with one another, to come back to the table."

Alex Tam speaks with client Gloria Lakeswill who says his service at the pharmacy helped save her life. (CBC)

Dr. David Tu, a physician who works with people in the Downtown Eastside, says shutting down the pharmacy is misguided and dangerous.

"These are complicated patients, you can't cookie-cutter the way this pharmacy practices, the way you would practice in other neighbourhoods," he said.

Alex Tam told CBC that he will continue to operate as long as he can, even after he's de-enrolled from PharmaCare. He says he won't take a salary and will keep paying employees and dispensing to patients until his money runs out.

Eastside Pharmacy Ltd. employs 10 people and has more than 800 clients, 250 of whom have HIV.

Corrections

  • An earlier version of this story said Eastside Pharmacy had 250 clients. In fact it has more than 800 clients, 250 of whom have HIV.
    Nov 06, 2015 4:04 PM PT