THOUSANDS of pharmacies across England could be forced to close amid a drug pricing row with the Government.
Rural pharmacies in particular are under serious threat – potentially cutting off a vital healthcare lifeline for the most vulnerable.
Rural pharmacies in particular are under serious threat
The crisis surrounds the Department of Health and Social Care’s (DHSC) failure to efficiently reimburse pharmacies which have been hit with a massive drug price hike by wholesalers.
And this comes as the sector is already reeling from years of government funding cuts, the impact of inflation and supply chain issues.
Leading voices in the industry say community pharmacies in England – which number 11,522 – are now at “breaking point” and are being “squeezed on every front”.
The Pharmaceutical Services Negotiating Committee (PSNC) – the body that negotiates drug prices with the Government on behalf of pharmacy owners – told The Sun the threat of closures is real.
“We believe hundreds, possibly thousands of pharmacies could close, primarily because of price concessions, but also a combination of other factors as well,” a spokesperson said.
“Now more than ever, pharmacies are at breaking point.
“Patient services are at risk and we’re at risk of losing that vital local healthcare link.
“The government is making it more difficult for pharmacies to operate financially.”
The crux of the issue is the Government’s Drug Tariff which outlines what will be paid to pharmacy contractors for NHS services, via reimbursement or remuneration.
NHS Prescription Services produces the Drug Tariff on a monthly basis on behalf of the DHSC.
But if a pharmacy cannot source a drug at or below the reimbursement price, they are left to foot the often hefty bill.
There is a concession system under which pharmacies are able to reclaim the money, but it’s bogged down with red tape, delays and disagreements over pricing, often leaving pharmacies out of pocket.
And for smaller community pharmacies this could be fatal.
“We’re being squeezed on every front,” said Dr Layla Hannbeck, CEO of the Association of Independent Multiple Pharmacies which represents 4,000 pharmacies in England.
“It’s a very complicated system and the number of common medicines that have gone up in price significantly is high, it’s getting unreal.
“For example the drug anastrozole, a hormone treatment, used to be around £1.10, it now costs £60.
“Prednisolone, which is a normal steroid, is another one that has gone up in price, yesterday it might have cost £1 and today it costs £40-£50.”
Dr Hannbeck also gave the example of another drug called aripiprazole, a common medication used to treat gastric reflux.
She says the cost has soared so high that an average pharmacy is incurring at least an £8,000 loss per month just on that drug alone.
“Until the department (DHSC) puts up the price that is reimbursed, many pharmacies cannot afford to pay the wholesale bills.
“We will see over the coming year the number of pharmacies in England go down in numbers, it’s already starting to happen.
“What people don’t understand is that 90% of an independent pharmacy’s activity is NHS related.
“So if they are not getting reimbursed to pay for the drugs then they will go out of business, it’s as simple as that.”
Dr Hannbeck added that while wholesalers are passing on their increased costs by hiking the price of drugs, pharmacy owners cannot offload their costs on to people who use the service.
The PSNC, which is pressuring the Government for change, added: “The government has said they’re not worried about a few closures, but this could be whole swathes of community pharmacies.
“And of course if you’re not in control of what’s happening there, if they just let the market forces play out, then it could be that in some areas, in particular rural areas, people will be a very long way away from a pharmacy.
“And the funding follows activity, a pharmacy in a rural area might not do many prescriptions, but of course they’re a lifeline to people.”