Competition policy papers
July 2, 2014
The Pharmacy Guild of Australia
has warned that if the pharmacy
sector is deregulated, a ‘corporate’
model of pharmacy focused on
high volumes and low margins to
maximise profitability and drive
shareholder returns would become
increasingly prevalent.
The comments come as part of
the Guild’s response to the current
National Competition Policy review
which has been commissioned by
the Federal Government.
The Pharmaceutical Society
of Australia has also made a
submission to the review, in
which it “unequivocally supports
the current provisions relating to
ownership of pharmacies.”
The potential profit-driven model
would be “at the expense of
more service and patient-focused
traditional community pharmacies,”
the Guild said, with similar trends
observed in other deregulated
retail sectors in Australia as well as
in the delivery of pharmacy services
in other parts of the world where
deregulation has occurred.
“This model is particularly
unsuited to the professional
practice of pharmacy because
the need to absolutely minimise
costs inevitably puts pressure on
less profitable parts of pharmacy
businesses, in particular, the
emphasis on providing high levels
of patient care and ensuring that
patients continue to have equitable
and timely access to the full range
of scheduled medicines,” the Guild
submission states.
A corporate pharmacy model
would also put at risk the
increasingly patient-centric
approach being adopted by many
community pharmacies, as well as
undermining the future delivery,
through the community pharmacy
network, of “an even broader range
of cost-effective health services.”
“It is clearly in the public interest
to maintain the current levels of
pharmacy regulation,” the Guild
told the review, adding that the
existing model is competitive and
continues to maintain the trust and
support of the Australian public
through its “consistent delivery of
high quality, cost-effective health
outcomes.
“A further review of the
community pharmacy model is
unnecessary and would simply
cause uncertainty for pharmacy
businesses, their staff and patients
for no public benefit,” the Guild
concluded.
The PSA reminded the review
that Australia is widely regarded as
having one of the best community
pharmacy sectors in the world,
which is “fundamental to providing
all Australians with equitable access
to cost effective medicines made
available through the PBS.”
CLICK HERE to view the Guild
submission, while the PSA paper
can be downloaded HERE.
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