It’s time for pharmacy ownership reform to improve access to medicines in rural Australia: RACGP

Royal Australian College of GPs

The Royal Australian College of GPs (RACGP) has called for targeted reform of pharmacy ownership rules, with another independent report showing the current ownership restrictions are not working as claimed – particularly in rural and remote communities and outer suburban areas.

The report by Monash University, published in the Australian Journal of Rural Health, highlights that this is leaving some Australians without reliable access to essential dispensing services.

RACGP Rural Chair Associate Professor Michael Clements said ownership restrictions designed for cities are creating barriers to care in communities already struggling to attract and retain healthcare professionals.

“Patients in rural and remote Australia deserve the same access to medicines and healthcare services as people living in our major cities,” he said.

“Where communities cannot attract a pharmacist willing or able to purchase a pharmacy business, the current rules can leave patients with limited or no local dispensing services.

“In these circumstances, we need practical solutions that put patient care first.”

The RACGP is calling on governments to explore exemptions or alternative ownership models for rural and remote communities where pharmacy services are at risk or unavailable.

Under current arrangements, GP clinics and other local healthcare providers have limited ability to step in and help sustain pharmacy services, even when a community is struggling to attract a pharmacy owner.

“Australia already allows medical practices to operate under a range of ownership models,” Associate Professor Clements said.

“Many rural GPs choose to work in practices without wanting to own the business themselves. The same flexible thinking should be applied to pharmacy services where communities are at risk of missing out.

“If a suitably qualified pharmacist can be employed within a healthcare service that meets all regulatory and professional requirements, we should be asking how we can support access for patients rather than maintaining barriers that no longer reflect the realities of rural healthcare.”

The RACGP said many rural communities face workforce shortages across multiple health professions and require innovative solutions to maintain local services.

The College pointed to experiences from rural Western Australia, where some GP-led services have established dispensaries to support communities without pharmacies. However, these services often operate without access to the same funding mechanisms and support available to traditional pharmacy businesses.

“Local healthcare providers are stepping up because they care about their communities,” Associate Professor Clements said.

“They want to ensure patients can access medicines close to home. Governments should be looking at ways to help these communities maintain services, not allowing outdated ownership restrictions to stand in the way.

“This is not about undermining pharmacists. It is about ensuring every Australian, regardless of their postcode, can access safe, high-quality healthcare and the medicines they need.”

The RACGP is urging governments to work with rural doctors, pharmacists and communities to identify reforms that improve access to medicines while maintaining appropriate professional oversight, quality standards, and patient safety protections.

~

/Public Release.