Due diligence
November 9, 2010
Pharmacists are reminded to carry out
due diligence when buying a pharmacy.
The Guild is aware of some
prospective pharmacies being offered
for sale before the PBS approval
process has been finalised, although
that may not be evident to a potential
buyer. Advertisements listing
pharmacies for sale may include
estimated sales figures and
environmental factors such as the
number of doctors in the area or local
support for the pharmacy. While
claims from a vendor may prove
accurate, prospective buyers should
seek their own business and
environmental analyses.
Pharmacists should be especially
prudent when buying a start up
pharmacy business, and check that it
has received full approval from
Medicare Australia. It is advisable to
familiarise yourself with the Medicare
Approval Number process. The
Australian Community Pharmacy
Authority (ACPA) is the body that
considers applications for new
pharmacies or pharmacy relocations,
based on the Pharmacy Location Rules.
However, the ACPA does not issue
PBS Approval Numbers to enable the
supply of PBS subsidised medicines.
The ACPA assesses the application and
makes a recommendation to Medicare
Australia if the application satisfies the
criteria of the Location Rule under
which the application was made. A
recommendation by the ACPA does
not constitute approval to supply PBS
subsidised medicines. Medicare
Australia will consider the
recommendation by the ACPA and
issue the final approval to the
pharmacist.
The Guild’s resource Buying and
Selling a Pharmacy: 7 steps to a highly
effective sale or purchase provides
insightful advice on establishing and
running a viable pharmacy business.
The guide includes up-to-date
information and links to a range of
pharmacy professionals and other
organisations associated with the
buying of a pharmacy.
See http://www.guild.org.au/
buyingandsellingapharmacy/ for
further information.
The above article was sent to subscribers in Pharmacy Daily's issue from 09 Nov 10To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 09 Nov 10
