Community pharmacy policy in Australia is controlled by pharmacy owners, and patients and taxpayers are losing out, according to a new Grattan Institute report.
The report, Future pharmacy: A better deal for patients and taxpayers, shows that the Pharmacy Guild of Australia, which represents owners, calls the shots.
The Guild negotiates pharmacy funding and policy directly and secretly with the federal government.
The result is good for pharmacy owners – the sector’s profits have surged – but patients miss out on cheaper medicines.
The government and patients are paying dispensing fees that aren’t justified and are probably too high.
Regulations choke off competition between pharmacies that would improve the quality of service and cut the prices of prescription medicines.
‘Pharmacy policy is a shakedown that needs a shakeup,’ says report lead author and Grattan Institute Health Program Director Peter Breadon.
The report recommends a multi-pronged strategy to ensure community pharmacies provide better value for patients and taxpayers:
- No more backroom deals. Government/Guild agreements should be replaced by independent policy decisions.
- Dispensing fees should be reset. Unjustified fees should be scrapped. All fees should be set independently, and based on cost, not on bargaining.
- Restrictions on discounting medicines should be phased out.
- Rules on pharmacy location and ownership should be scrapped immediately.
- The government should fund pharmacists in GP clinics, because evidence shows that their expertise there can improve patient care.
‘Government spends billions on community pharmacy each year. Fairer fees and stronger competition will ensure it is run for patients, not just owners,’ says Mr Breadon.
‘Replacing bargaining with evidence, and protectionism with competition, will give patients lower prices and taxpayers better value – all while keeping community pharmacy an accessible and trusted service that Australians can rely on.’
