Centrum Pharmacy Welcomes Ontario’s Move to Ban Preferred Pharmacy Networks (PPNs)

Centrum Pharmacy is encouraged by the Ontario government’s recent announcement to ban closed Preferred Pharmacy Networks (PPNs) — a long-overdue step toward restoring fairness, access, and choice in pharmacy care.

As part of its fall economic statement, the Minister of Finance announced that the government will introduce legislation to end exclusive deals between insurers and certain pharmacy chains that limit where patients can fill their prescriptions — especially for high-cost specialty medications.

If passed, Ontario would become the second province in Canada (after Quebec) to restrict or ban closed PPNs. The Ontario College of Pharmacists (OCP) has already declared that closed PPNs violate the Code of Ethics, citing how these arrangements undermine continuity of care and compromise patient wellbeing by putting corporate and insurer interests above patient choice.

Centrum Pharmacy is happy that the government is moving in this direction — and we sincerely hope that this legislation will be robust and a true deterrent to PPNs, without leaving loopholes for insurers or pharmacy conglomerates to exploit.

Why This Matters

For years, Preferred Pharmacy Networks have quietly reshaped the healthcare landscape. Insurers, benefit managers, and even some pharmacy chains have built closed networks that steer patients toward certain “preferred” locations — often owned or affiliated with the same corporations behind their insurance or adjudication platforms.

This has eroded patient freedom, particularly for those managing chronic conditions, specialty therapies, or mental health medications.

How PPNs Hurt Patients

The most significant casualty of PPNs is patient choice.

• Patients are steered away from their trusted local pharmacy — even when that pharmacy provides better service, continuity, and accessibility.
• Continuity of care is disrupted as medication histories, chronic condition tracking, and pharmacist-patient relationships are fractured.
• Rural and underserved patients may have no nearby “preferred” pharmacy and are forced to travel long distances or rely on impersonal mail-order services.
• Urgent prescriptions — antibiotics, inhalers, or mental health medications — can be delayed due to network restrictions, contradicting Ontario’s goal of improving access through pharmacist-led care.

Ultimately, PPNs treat patients not as individuals with health needs, but as insurance plan members to be routed according to contracts — not care.

The Hidden Conflict of Interest

What many Ontarians don’t realize is that many insurance and benefits adjudication companies actually own their own online pharmacies.
They use PPN rules and reimbursement restrictions to deter patients from using their local pharmacy, effectively diverting prescriptions to their own in-house pharmacies.

This practice is deeply unethical — it creates a financial conflict of interest where the same entity that manages drug benefits also profits from filling those prescriptions. It disadvantages community-based pharmacies and undermines the principle of patient-centered care.

The Human Impact: Real Stories Behind the Policy

Mary, a senior living in Ottawa, had been using her local independent pharmacy for over 15 years. Her pharmacist knew her history, her allergies, and her family doctor. But when her pension plan switched providers, she was told she must now use a “preferred” mail-order pharmacy to get her medications covered.

Her first shipment was delayed. A medication mix-up led to a week of unmanaged blood pressure — and anxiety. “It wasn’t just about the pills,” Mary said. “It was about losing someone who knew me.”

Mary’s story is one of thousands across Ontario.

The Government’s Move: A Step Toward Fairness

The Ontario government’s announcement signals a major shift in healthcare fairness:

• Reason for the ban: To stop insurers from forcing patients to use specific pharmacies and restore true patient choice.
• Impact on patients: Greater flexibility to choose any pharmacy — especially for specialty and high-cost medications — without penalty.
• Background: The decision follows intense public backlash, including the cancelled Manulife–Shoppers Drug Mart deal, which became a flashpoint for public anger over PPNs.
• Industry reaction: Patient advocates, small pharmacies, and the OCP have applauded the move; insurers and large pharmacy chains may resist due to profit motives.

At Centrum Pharmacy, we believe this decision is not just about economics — it’s about ethics and equality. Every patient deserves the right to choose where they receive care, without being steered or restricted by profit-driven contracts.

Our Commitment

As Ontario transitions toward this new framework, Centrum Pharmacy remains dedicated to patient-centered, community-based care — the kind of care that treats every patient as a person, not a policy number.We will continue to advocate for legislation that supports fairness, transparency, and the preservation of independent pharmacies — because true healthcare choice begins with trust.

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