TORONTO - Ontario opened the door Tuesday to increased funding for pharmacists who provide additional patient services as a second pharmacy chain joined the protest against changes to the drug prescription system.

Health Minister Deb Matthews offered what appeared to be an olive branch in saying both sides needed to sit down and talk so they can move forward. Still, she refused to back down from a plan to put an end to the $750 million a year in payments pharmacists receive from generic drug manufacturers to stock their products.

The plan to reduce drugs costs includes $150 million in funding, including a new $100-million fund to compensate pharmacy owners for providing professional services such as flu shots, Matthews noted.

"If pharmacists do embrace the model, if they do provide services like vaccinations, like chronic disease management... then that's an area that I think we'd look very closely at," Matthews said.

The health minister wouldn't go as far as to say there will be money beyond the $100 million for professional services, but called front-line pharmacy service "something that has tremendous potential."

"If they are taking pressure off our family doctors, if they're taking pressure off emergency departments, we want to compensate them for that," she said.

"Pharmacists are extremely well-trained people. They've got six years of education. I want to put that education to work."

Pharmacists have complained the new funding levels are too low given the loss of the $750 million.

The Rexall drug store chain said Tuesday it will impose a hiring freeze at its corporate head office and will begin charging for prescription drug deliveries at its Ontario pharmacies starting next Monday. It's the second chain to ratchet up the pressure because of the government's plans.

A day earlier, industry leader Shoppers Drug Mart said it was cutting cut store hours and streamlining seven of its stores in Matthew's riding of London, Ont.

Shoppers has more than 500 stores in Ontario and Rexall operates 250 stores in the province. The Rexall family of pharmacies include Rexall, Pharma Plus, Rexall Pharma Plus, The Medicine Shoppe, Guardian and I.D.A.

Matthews expressed disappointment over the protests, which she called a "remarkable coincidence."

But her tone was much more conciliatory than Monday, when Matthews angered pharmacists with a letter in which she accused them of "holding patients hostage" and scaring the public unnecessarily.

Rexall CEO Andy Giancamilli said Tuesday it was the government's actions that forced the company to review its business model as well as its operations and future investment plans in Ontario.

"We are disappointed these measures must be taken, particularly given our long-standing commitment to the professional development of pharmacists," Giancamilli said in a release.

Rexall's planned cuts also include eliminating pharmacy student and intern programs in the province effective immediately.

Premier Dalton McGuinty declined to comment on the drugstores' tactics, saying only that the province tried to come to an agreement over costs with pharmacists but decided to move ahead with the changes even though those talks failed.

"We have a very high responsibility to ensure that we can continue to afford our health-care system, and we made some choices here," McGuinty said.

"The only sympathy I have is for Ontario families. They are the people to whom I owe the highest accountability, and right now they're paying too much for the drugs."

The premier urged for "cooler heads to prevail" in the debate, saying what's needed is a "healthy and civil" discussion.

Opposition parties echoed those comments, saying it's time to tone down the rhetoric and start problem-solving.

"It's really becoming apparent that this heated war of words is not getting anybody anywhere and the only surefire losers are going to be the people of Ontario in terms of their access to pharmacies," said NDP Leader Andrea Horwath.

Progressive Conservative Leader Tim Hudak said McGuinty and Matthews needed to sit down with the pharmacy leadership to try to find a better way of lowering drugs costs.

"I am concerned that the approach that the government has taken will result in a lower level of service for seniors and worried moms or dads," Hudak said.

One fight the government wasn't looking to pick, however, was against former Liberal premier David Peterson, who is on the board of directors of Shoppers Drug Mart and is also Matthews' brother-in-law.

Asked whether the protests were making things tense for the family, Matthews said the drug plan wasn't something the two had talked about.

"We all love each other no matter what," she added with a laugh.