Pharmacy Daily | Prescriber pharmacy debate

THE future role and contribution of pharmacy to the Australian healthcare system should be based on evidence rather than “behind closed door” negotiations, according to one of two editorials published online late last week by NPS MedicineWise’s Australian Prescriber. That’s the opinion of Professor Philip Clarke from the University of Melbourne’s Centre for Health Policy, Programs and Economics, who provided one of the viewpoints canvassed on the topic of ‘pharmaceuticals, pharmacists and profits’. The other side of the argument came from Pharmacy Guild Executive Director, David Quilty, who described the public-private partnership which currently sees delivery and dispensing of medicine funded by the five-year Community Pharmacy Agreements. Quilty defends the current model, saying that like any small business, pharmacies need to achieve a reasonable return on their investments, and highlights the heavy impact of price disclosure on pharmacy profits. He cites the Grattan Institute report which acknowledges the negative flow-on effect of lower medicine prices on community pharmacy, and which suggests expanding the services that pharmacies can provide as well as the possibility of “direct, transparent subsidies to community pharmacies in locations where viability may be an issue.” Quilty said the Guild strongly supports an enhanced role for pharmacy, but adds that such new models “are only feasible if pharmacies continue to be properly remunerated for their core role of dispensing medicines safely and responsibly to patients.” HOWEVER Clarke’s alternative editorial suggests that if the govt compensates pharmacists for more rapidly declining generic prices, “should it not also compensate firms that sell computers or mobile phones, as they also face declining profit margins from falling prices.” The academic cites the example of England, where price disclosure adjusts prices downwards every three months, and despite this the number of pharmacies operating has risen 15% since 2005. Clarke questions the role of pharmacy location rules introduced in the 1930s, particularly in the 21st century with the advent of the online internet purchasing. And he urges a transparent Productivity Commission review of the community pharmacy sector which he said could identify scope for efficiencies, while taking into account the special needs of rural consumers. For both viewpoints see www.australianprescriber.com.

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