Federal Government proposal to halve price of medication will leave pharmacies 50 per cent out of pocket

A local pharmacist says a proposal allowing customers to buy two months’ worth of medicine will be devastating to his business and patient health and will “change the health industry for years to come.” The Federal Government claims the 60-day dispensing plan will ease cost of living pressures. For the price of a single prescription, customers will be able to buy two scripts’ worth — leaving pharmacies across the country at a major loss. If it goes through it will come into effect on September 1. Patients will be able save up to $180 a year and concession card holders will save up to $43.80 a year per medicine. Paul Buise, owner and operator of Pharmacy 194 and Rangeway Guardian Pharmacy, said the policy would be devastating to his business and patients’ health, with the margin for error extremely high. He said the change would cause significant stress to the supply chain which was already struggling. “The Therapeutic Goods Administration already lists 395 medications as out of stock, and 77 listed as anticipated no stock — we can’t go ordering double and expect it to be supplied,” Mr Buise said. “Patients have access to two months’ worth of medication in their homes, and the risk of overdose or medical misadventures becomes 50 per cent higher.” He said aside from the health risks, the financial strain caused by the policy would see pharmacies out of pocket as the government would not be providing dispensing fees for the second round of medication. “The dispensing fee is paid to the pharmacy to cover the cost of the logistics of ordering, storing, monitoring its expiry, picking it off the shelf, processing a prescription, making sure it’s legal, it has the right directions on it, making sure it’s appropriate for the patient, counselling the patient on that medication — we get about $7.30 for that,” Mr Buise said. Staring down a 50 per cent loss of income, Mr Buise said was a “very scary” proposition. “Once you look at the ripple effect and the implications of this policy, it just doesn’t add up,” he said. The local pharmacist agreed the policy was fantastic for consumers helping with the rising cost of living, but added “mark my words, this will change the health industry for years to come”. Mid West GP Network deputy chairman, Dr Ian Taylor said while the policy was a win for those with chronic illnesses and large medication expenses, it was putting small community pharmacies at risk. “I’m concerned for the small pharmacies, particularly in rural areas. They are unable to fall back on the sale of other products that big commercial pharmacies sell — they may become unviable,” he said. The policy could see workers lose jobs, and vulnerable patients unable to access medications when services have to change in order to save money, such as the free delivery service offered by Pharmacy 194.