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

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Critical Structural Checks to Prioritise Before Renovating an Older Property

The Australian home renovation market is experiencing unprecedented growth. The total value of thi...

Why Regular Gutter Cleaning Northern Beaches Is Important

Living in the Northern Beaches offers beautiful coastal scenery, fresh air, and leafy surroundings...

Double Glazed Sliding Doors vs Standard Sliding Doors: Key Differences

Sliding doors are a popular choice in modern homes due to their space-saving design and ability to...

How to Plan a Bathroom Renovation Timeline (Without Surprises)

A bathroom renovation rarely feels “small” once work begins. Even modest updates involve multiple ...

What “Extraction Facial” Actually Means (And When It Helps)

“Extraction facial” is one of those skincare terms people use as if it’s one standard treatment, b...

How Compounded Medicines Support Individual Health Needs

Not every patient responds to medicine in the same way. Age, allergies, dosage requirements and sw...

How Live Comedy Can Shape the Mood of an Event

The mood of an event is shaped by more than the venue, food, music, or schedule. Entertainment can...

Why Home Gym Mats Are Becoming a Must-Have

Building a dedicated workout space at home has become increasingly common across Australia. Many p...

Choosing an ELISA Format That Matches Your Target

A colorimetric ELISA ends with a plate that has developed color, and the instinct is to read more ...