Pharmacy Daily | $2.1b 6CPA underspending forecast

FEDERAL Government spending on the Sixth Community Pharmacy Agreement (6CPA) is expected to fall $2.1 billion short of the forecast $18.9 billion, the Pharmacy Guild of Australia believes.

With the 6CPA set to expire on 30 Jun, a Guild spokesperson revealed the total Government spend on the five-year deal was likely to reach $16.8 billion, when remuneration for dispensing, professional pharmacy programs, NDSS funding, wholesaler mark-up and the Community Service Obligation (CSO) funding for wholesalers was combined.

"I know what you're thinking -- what about the headline figure of $18.9 billion that was put around at the time of the signing of the 6CPA in 2015," the spokesperson said.

"Well, as we know only too well in the current economic environment, forecasts and estimates entail a bit of educated guesswork and fortune-telling, which explains their frequent inaccuracy despite best intentions.

"Professional pharmacy programs look to have received $1.1 billion in funding over the five years, around $100 million below the forecast.

"As the sun sets on 6CPA, it should be remembered as a reforming agreement, which provided patient benefit as well as new stability and certainty for 5,800 local community pharmacies.

"The highly innovative and beneficial Administration, Handling and Infrastructure (AHI) fee put a floor under PBS prices to ensure that the price disclosure process did not undermine the viability of dispensing and threaten consumer access to medicines.

"The 6CPA provided a significant boost -- a doubling in fact - in professional pharmacy program funding, which has translated into direct patient benefit for half a decade.

"It also laid the groundwork for the imminent 7CPA, which is once again being negotiated between the Commonwealth and the Pharmacy Guild with a mutual focus on patient benefit, support for the PBS, and the viability of the highly trusted and respected network of community pharmacies."

While details of the 7CPA are yet to be confirmed, Federal Health Minister, Greg Hunt, told the Guild's Annual Parliamentary Dinner that the new deal would deliver certainty for community pharmacy and reduce fluctuations in payments, providing "remuneration you can bank on" (PD 12 Sep 2019).

"We're developing a model to set the remuneration, through negotiations and discussions, which we believe will be fair and reasonable," he said.

"You'll know what you will receive, so you can see over the next five years this is the amount, and this time that amount will effectively be guaranteed."

Meanwhile, delegates watching last night's Pharmaceutical Society of Australia (PSA) weekly webinar were told that regular host and PSA National President, Dr Chris Freeman, was unable to moderate discussions on electronic prescriptions as he was locked in talks with the Department of Health over the 7CPA.