PBS reform industry shock
August 5, 2013
THE government has once
again disappointed the Australian
pharmacy and medicines sector,
with the surprise unveiling of
further measures to accelerate
Pharmaceutical Benefits Scheme
price disclosure in Fri’s economic
statement (PD breaking news).
And the move comes despite
the statement confirming that
government payments under the
PBS are forecast to be $2 billion
lower than expected over the four
years to 2016-17 “largely reflecting
highter than expected savings from
existing pricing policy”.
The government has now
announced that the price disclosure
cycle will move from the current 18
months to 12 months, with both
the Pharmacy Guild and Medicines
Australia saying that they were not
consulted on the shock move.
The Pharmacy Guild says this “will
make the already difficult economic
environment for community
pharmacy even more difficult”.
In a statement issued late on
Fri afternoon, Guild President
Kos Sclavos said the shock move
will hasten the decline in PBS
dispensing margins in pharmacy.
“Under the Community Pharmacy
Agreement, the Commonwealth
is committed to consulting with
the Guild on any budget initiatives
that have a significant and
sustained impact on the viability of
community pharmacy,” he said.
“This further impact on pharmacy
bottom lines means that it is
even more critical that the next
Community Pharmacy Agreement,
due to be put in place from July
2015, increases remuneration for
dispensing medicines”.
Medicines Australia is also furious
at the lack of consultation, with
MA ceo Brendan Shaw saying
the announcement undermines
the collaborative work achieved
in the 2010 Memorandum of
Understanding with the govt.
“For this policy change to be
announced without consultation
is a disappointing signal to one of
Australia’s leading innovation and
export industries,” he said.
MEANWHILE the Pharmacy Guild
yesterday issued an urgent update
to members, after evaluating the
impact of the changes unveiled by
the government on Fri.
An analysis of the “streamlined
price disclosure” system shows it’s
now estimated to cost over $88,000
per pharmacy on average in ‘14-15.
Sclavos said that the Guild had
already known that 2014-15
would be a very difficult year
for pharmacies as the price
disclosure regime impacts fully on
high volume molecules such as
atorvastatin and rosuvastatin.
“The sudden moving of the goal
posts with this new regime has
turned a very difficult situation into
a looming crisis,” he warned.
The Guild is seeking high level
meetings with both sides of politics,
asking for “urgent agreement to
compensation to ameliorate the
impact on community pharmacies”.
Pharmacy owners and staff
around the country are being asked
to support the push, by telling
their local parliamentarians about
the serious implications from the
changes for local jobs and patient
access to pharmacy services.
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