I would like to mention a few facts in relation to the issue of the reductions and the PBS. In the 5th Agreement between Community Pharmacy & the Australian Government both parties agreed to a framework for systematic price reductions. Pharmacy has been the driving force behind this process which has saved literally hundreds of millions of dollars a year from the cost of the PBS. When a medication drops in value our bottom line drops as well. This amount is what we use to pay for the ongoing running of our businesses - the wages, electricity, rent, tax, insurance, workers compensation insurance - the list goes on.
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The recent changes to this arrangement, which were implemented without consultation with Pharmacy, will reduce the bottom line of the average pharmacy by $30,000 per annum. This was directly against clause 30 of the agreement which stated that decisions with a substantial impact to pharmacy viability would need to be implemented in consultation with the industry. In some businesses this may mean the loss of a staff member and a reduction in some services which are currently offered at no charge. In other businesses it may be the difference between viability and closure.
Any town with only one pharmacy should be concerned about this development. As Pharmacists we support the principles behind price disclosure, but we expect it to be implemented in a manner that will not send us to the wall and will allow us to provide the services that the public rightly expects.
