Pharmacies to charge patients for once-free medical services amidst Labor’s prescription dispensing changes
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Pharmacies will soon begin charging customers for some services that have previously been offered for free—such as blood pressure checks, delivery of medication, and wound care.
This is the latest development in the wake of the introduction of the federal government’s 60-day dispensing policy, which will see patients obtain a 60-day supply of their prescriptions for the same price as a 30-day script from September 1st.
The 2023 CommBank Pharmacy Insights report reveals that due to the impact of the new delivery scheme, around four out of five pharmacies are planning to introduce charges for certain services.
The report also indicated that about 90 per cent of pharmacies anticipate a significant decrease of up to one-third in their revenue.
This worrisome trend is further highlighted by the Community Pharmacy Barometer Index, which shows a sharp decline in confidence within the pharmacy sector.
Previously reaching its highest point in a decade, the index has dropped drastically. This decline occurred shortly after the government implemented its new policy.
Community pharmacies are concerned about the impact of the dispensing scheme, as 72 per cent of them anticipate a huge reduction in profits. According to a government report, pharmacies nationwide are projected to experience an annual loss of nearly $160,000 each due to the program.
Albert Naffah, Chief of CommBank Health, pointed out that this situation is compelling pharmacies to reevaluate the financial sustainability of their businesses. Many pharmacies are being forced to reconsider the financial viability of their business.
‘Many are considering whether keeping their workforce and opening hours intact is financially viable, while others are still grappling with shortages,' he said.
Quinn On, a pharmacy owner from Southwest Sydney, gave some insight into how pharmacies are potentially preparing to tackle the financial losses caused by the dispensing scheme.
'Many pharmacies do free deliveries of medication for their regulars and elderly patients, and that won’t happen anymore after 60-day dispensing. We are having lots of meetings about how we can mitigate the impact of 60-day dispensing. We’re doing everything we can.’
Mr On has made changes to the services offered at the pharmacy. Previously, wound dressing was provided for free, but now it will come with a cost. Additionally, there will be a charge of $10 to $15 for blood pressure checks.
CommBank Pharmacy Insights also mentions that businesses in the pharmacy sector are motivated to provide additional services for patient care to increase their revenue.
The expected decline in profits has prompted various strategic responses from pharmacies. One significant growth opportunity identified was expanding professional services. Many pharmacies are also considering assessing their labour costs, which has led to discussions about potential staff reductions.
In this regard, the report says that 62 per cent of pharmacies are contemplating a decrease in the number of assistants, while 43.5 per cent are considering a similar reduction in employed pharmacists. Additionally, 48.1 per cent of pharmacies are exploring the possibility of reducing their opening hours.
For many of us, the news of these changes comes as a shock. We are used to being able to pop down to our local pharmacy and get various free services when we need them, so hearing that this may no longer be an option is jarring.
In the meantime, staying updated on government announcements or alterations in medical fees or services is crucial. If you're worried about medication expenses or other concerns, don't hesitate to discuss them with your local pharmacist. They'll be more than willing to assist you.
Rest assured, we at the SDC are committed to keeping you well-informed about these changes and other significant developments. So stay tuned for updates!
What are your thoughts on this, members? Share them with us in the comments below.
This is the latest development in the wake of the introduction of the federal government’s 60-day dispensing policy, which will see patients obtain a 60-day supply of their prescriptions for the same price as a 30-day script from September 1st.
The 2023 CommBank Pharmacy Insights report reveals that due to the impact of the new delivery scheme, around four out of five pharmacies are planning to introduce charges for certain services.
The report also indicated that about 90 per cent of pharmacies anticipate a significant decrease of up to one-third in their revenue.
This worrisome trend is further highlighted by the Community Pharmacy Barometer Index, which shows a sharp decline in confidence within the pharmacy sector.
Previously reaching its highest point in a decade, the index has dropped drastically. This decline occurred shortly after the government implemented its new policy.
Community pharmacies are concerned about the impact of the dispensing scheme, as 72 per cent of them anticipate a huge reduction in profits. According to a government report, pharmacies nationwide are projected to experience an annual loss of nearly $160,000 each due to the program.
Albert Naffah, Chief of CommBank Health, pointed out that this situation is compelling pharmacies to reevaluate the financial sustainability of their businesses. Many pharmacies are being forced to reconsider the financial viability of their business.
‘Many are considering whether keeping their workforce and opening hours intact is financially viable, while others are still grappling with shortages,' he said.
Quinn On, a pharmacy owner from Southwest Sydney, gave some insight into how pharmacies are potentially preparing to tackle the financial losses caused by the dispensing scheme.
'Many pharmacies do free deliveries of medication for their regulars and elderly patients, and that won’t happen anymore after 60-day dispensing. We are having lots of meetings about how we can mitigate the impact of 60-day dispensing. We’re doing everything we can.’
Mr On has made changes to the services offered at the pharmacy. Previously, wound dressing was provided for free, but now it will come with a cost. Additionally, there will be a charge of $10 to $15 for blood pressure checks.
CommBank Pharmacy Insights also mentions that businesses in the pharmacy sector are motivated to provide additional services for patient care to increase their revenue.
The expected decline in profits has prompted various strategic responses from pharmacies. One significant growth opportunity identified was expanding professional services. Many pharmacies are also considering assessing their labour costs, which has led to discussions about potential staff reductions.
In this regard, the report says that 62 per cent of pharmacies are contemplating a decrease in the number of assistants, while 43.5 per cent are considering a similar reduction in employed pharmacists. Additionally, 48.1 per cent of pharmacies are exploring the possibility of reducing their opening hours.
Key Takeaways
- Pharmacies and chemists across Australia will begin to charge for previously free medical services in response to Labor's new prescription dispensing policy.
- The policy, which starts on 1 September, will allow patients to receive 60 days' worth of prescriptions for the cost of their current 30-day scripts, which could lead to decreased profits for pharmacies.
- Following the policy introduction, confidence in the pharmacy sector has dipped to its lowest in a decade, according to the UTS Community Pharmacy Barometer Index.
- To counter this impact, pharmacies consider assessing their labour costs, leading to discussions about potential staff reductions.
For many of us, the news of these changes comes as a shock. We are used to being able to pop down to our local pharmacy and get various free services when we need them, so hearing that this may no longer be an option is jarring.
In the meantime, staying updated on government announcements or alterations in medical fees or services is crucial. If you're worried about medication expenses or other concerns, don't hesitate to discuss them with your local pharmacist. They'll be more than willing to assist you.
Rest assured, we at the SDC are committed to keeping you well-informed about these changes and other significant developments. So stay tuned for updates!
What are your thoughts on this, members? Share them with us in the comments below.