Read The Times Australia

Daily Bulletin

Government versus pharmacists in search for big savings

  • Written by: The Conversation
imageThe government is playing "hardball" in the talks over the new Community Pharmacy Agreement, according to sources.medicine picture from www.shutterstock.com

The government is locked in a major battle with pharmacists as it looks for A$3 billion in budget savings from the pharmaceutical supply chain.

The current five year A$15.4 billion Community Pharmacy Agreement between the government and the Pharmacy Guild runs out at the end of June and a deal must be reached for a new one to start on July 1.

The agreement sets out the government remuneration for pharmacists for dispensing Pharmaceutical Benefits Scheme medicines.

Sources in the sector said the government was playing “hardball” in the talks over the new agreement; the government says the same of the pharmacists. The pharmacists are arguing that they have already contributed substantially to savings over the previous five years and should not be squeezed further.

The government is also negotiating with the drug companies as it seeks the A$3 billion in savings.

In last year’s budget the government announced an increase in PBS patient co-payments and safety net thresholds – this was to produce savings of A$1.3 billion over four years from January 1, 2015. But the government has not been able to get the legislation through parliament.

The current battle with the pharmacists follows the government’s earlier bruising stoush with the doctors, leading to it eventually abandoning its planned Medicare co-payment, which it could not get passed. The doctors waged a fierce battle against the new co-payment; the pharmacists did not fight so hard because the planned measure was a rise in an existing co-payment.

In the mix in the negotiations with the pharmacy sector is the recent recommendation from the Harper review of competition policy which said that the current restrictions on the ownership and location of pharmacies are not needed.

At present pharmacies can only be owned by qualified pharmacists, can’t be located in supermarkets, and cannot be within a certain distance of another pharmacy.

The government can use the rules as a bargaining chip in its push for savings. It also wants to find some ways to get more competition into the sector, and is in a position to exert pressure because the location rules have a sunset clause of June 30.

The Harper report said that the ownership and location rules should go “in the long-term interests of consumers. They should be replaced with regulations to ensure access to medicines and quality of advice regarding their use that do not unduly restrict competition”.

The report said the negotiation on the next Community Pharmacy Agreement provided an opportunity for the government to implement relaxation of the location rules, as part of moving towards eventually removing them.

The Pharmacy Guild points to the fact that the Coalition before and after the election expressly supported the present pharmacy ownership model and the location rules.

It says the implementation of the Harper recommendations would just give more market domination to Coles and Woolworths with no benefit to consumers.

Tuesday’s Essential poll found that just over four in ten people believed the May 12 budget would be bad for them personally while about half thought it would be bad for older people and those on lower incomes.

The only groups that more people thought the budget would be good for rather than bad were “people who are well off” (49% good, 9% bad) and business (32% good, 17% bad).

But compared with expectations about the 2014 budget people were notably less pessimistic about the coming budget being bad for them personally and for particular groups, especially older Australians, average working people, and families.

While last year 55% predicted the budget would be bad for them personally, this has fallen 14 points to 41% this year.

Prime Minister Tony Abbott has been strongly pressing the point that the government’s second budget won’t hit families.

Michelle Grattan does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

Authors: The Conversation

Read more http://theconversation.com/government-versus-pharmacists-in-search-for-big-savings-40577

Business News

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Brid...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...