Key Takeaways
- The pharmacy sector in New Zealand is struggling to survive due to increased competition from discount pharmacy chains and government funding that has not kept pace with other costs.
- Community pharmacists are warning that the latest change to prescription rules, which allows for up to a year’s supply of medication, will increase their workload without providing additional funding.
- The Independent Community Pharmacy Group is calling for country-wide consistency in the way Health NZ grants contracts under the National Pharmacy Agreement to prevent oversupply in certain areas.
- The group is also fighting industry deregulation proposals that would allow non-pharmacists to own pharmacies, citing concerns about patient safety and service quality.
- The number of community pharmacies in New Zealand has declined by almost 100 since 2020, with many struggling to break even due to increased competition and workforce pressures.
Introduction to the Struggles of Community Pharmacists
The pharmacy sector in New Zealand is facing significant challenges, with community pharmacists warning that they are struggling to survive due to increased competition from discount pharmacy chains and government funding that has not kept pace with other costs. Pakuranga pharmacist Vicky Chan says that the latest change to prescription rules, which allows for up to a year’s supply of medication, will increase her workload without providing additional funding. Chan, a member of the Independent Community Pharmacy Group, notes that she has to work harder to keep her business viable by offering extra government-funded services such as sleep clinics.
The Impact of Increased Competition
In less than 10 years, nearly 100 Chemist Warehouses and Bargain Chemists have opened across the country, leading to increased competition for community pharmacists. Chan says that she is looking at buying a $100,000 pill-counting robot for her Auckland pharmacy, but she worries that her business may not be able to support the investment in the future, given the threat of increased competition from discount pharmacy chains. The number of community pharmacies in New Zealand has declined by almost 100 since 2020, with many struggling to break even due to increased competition and workforce pressures. Chan notes that in east Auckland, she has seen another local pharmacy closed three months ago, and there will be another closing at the end of the month.
The Value of Community Pharmacists
Community pharmacists play a vital role in the healthcare system, providing services that go beyond just dispensing medication. A study by the University of Otago in 2021 found that unfunded customer services comprise a significant share of a pharmacist’s daily activities, requiring cross-subsidisation using revenue from other activities like dispensing or retail sales. Chan says that she spends a lot of time on tasks that make no money because she wants to do the best for her customers, some of whom are third-generation patients. She notes that a lot of the work that community pharmacists do is invisible, but it has helped reduce pressures on GPs and emergency department admissions.
The Threat of Deregulation
The Independent Community Pharmacy Group is fighting industry deregulation proposals that would allow non-pharmacists to own pharmacies, citing concerns about patient safety and service quality. Associate Health Minister Casey Costello says that deregulation will enable different models for pharmacy ownership, allowing for more innovative and integrated healthcare that will improve safe access to medicines. However, Wainuiomata pharmacist Clive Cannons disagrees, saying that the question is what kind of pharmacy industry the people of New Zealand want. He notes that if they want a pharmacy industry like America, then that’s exactly what’s going to happen.
The Need for Consistency in Contracting
The Independent Community Pharmacy Group is also calling for country-wide consistency in the way Health NZ grants contracts under the National Pharmacy Agreement. Cannons says that in his Hutt Valley region, new pharmacies can only get an agreement if the local funders consider there is a need. In other regions, agreements are more accessible, but that leads to oversupply. He cites Pukekohe, on the southern edge of Auckland, as "ground zero", with 13 pharmacies clustered in a high-volume area. Other parts of Auckland are also oversupplied, and many community pharmacies are struggling to break even.
Conclusion
The pharmacy sector in New Zealand is facing significant challenges, with community pharmacists warning that they are struggling to survive due to increased competition from discount pharmacy chains and government funding that has not kept pace with other costs. The Independent Community Pharmacy Group is calling for country-wide consistency in the way Health NZ grants contracts under the National Pharmacy Agreement and is fighting industry deregulation proposals that would allow non-pharmacists to own pharmacies. The future of community pharmacies in New Zealand is uncertain, but one thing is clear: something needs to be done to support these vital healthcare providers.
