Kirit Patel may be the managing director of the UK's largest independently owned pharmacy chain, but he is no stranger to the challenges of starting out as a contractor. It was 36 years ago that he bought his first pharmacy, before building up Day Lewis to 186 branches today. And with the launch of Day Lewis' partnership venture, which aims to help first-time buyers enter the pharmacy market, Mr Patel hopes other pharmacists will follow in his footsteps. During his 36 years in the sector, Mr Patel has seen dramatic changes. At the time of this interview with C+D, PSNC had just announced this year's widely berated funding package, which has seen yet more millions taken out of category M. Put this together with the demands of paperwork, dispensing and services, and many fear the outlook is bleak. It's something Mr Patel can't fail to recognise. "You only have to read the national press to see the NHS needs to make £20 billion in savings, and there's no question there's going to be blood on the pharmacy floor," he tells C+D. "It's inevitable that the austerity measures the government is imposing will be felt by pharmacists." Economic woes aside, pharmacy also has its own internal challenges. Half of Day Lewis branches have been affected by 100-hour pharmacies opening and Mr Patel predicts pharmacists will "struggle" to deliver the new medicine service (NMS) along with their other commitments. "It's definitely a good thing for pharmacy but [the sector] will definitely struggle," he says. "There are a lot of training requirements and there's also the cost of change and education for the patient, as well as staff. You've got to juggle a few balls in the air." And this juggling act must also include cash flow, which Mr Patel cites as the "biggest challenge" currently facing pharmacy. Pharmacists are not only being hit by NHS cuts, he warns, but also external factors. "We mustn't forget that this deduction in NHS income comes at a time when there's a credit crunch and the access to capital is difficult," he says. "Front-end sales are being squeezed because there's a discount war on the high street, and consumers are spending less. At the same time we have inflation, and that means the utility costs are going up and people are expecting a pay rise." All in all, it sounds like an ominous time to come into the pharmacy market – so why choose now to launch his partnership scheme? It will see Day Lewis contribute to the costs of a new pharmacy, as well as offering management support to first-time buyers – surely a risky venture in this economic climate? But the recession could in fact open doors for new buyers, Mr Patel explains. "It's absolutely a buyers' market providing you have the courage and ability to raise the capital, as well as manage the risk," he stresses. "The values of pharmacies are at rock bottom and I believe in the future, when the economy picks up and pharmacy is a serious service provider, pharmacy will receive recognition from the NHS." "The salvation to the problem of the massive deficit in secondary care is to provide more front-end care and keep people out of hospital," he adds. Mr Patel believes this will ensure a positive future for the sector – especially in the light of NHS reforms. "The government will see that investing upstream will save billions downstream at a later date," he says. "In the short term, managing this change [to the NHS] is going to be more difficult. Going forward, boom time will come and I'm sure the money will come back, and pharmacy will get the recognition it deserves as an integral part of the NHS." In the meantime, Mr Patel is adamant that independent pharmacies must not flounder. And to keep the independent sector strong, young people must be able to purchase their own businesses, he argues. "I read that many newly qualified pharmacists had aspirations to become pharmacy owners," Mr Patel explains. "I asked myself ‘where are they?'. The answer is simple – the financial market means they can't afford it. [Our partnership venture] is a great opportunity to enter ownership and not have any risk." "I want there to be a vibrant [independent] sector because I would hate to imagine what would happen if one day 80 per cent of pharmacies were owned by multiples," he adds. "Remuneration would completely change." But there is also a more personal reason behind the venture. Mr Patel stresses that he will be the "principle mentor" to the first-time buyers, a cause he is particularly passionate about. "This project is my baby and it has my heart behind it," Mr Patel says. "I would like to make these first-time buyers think as entrepreneurs and grow the chain. I'm hoping they don't just stop at owning one pharmacy." "We want people that are ambitious – they don't need to have a finance or management degree, but they need to be good pharmacists," Mr Patel explains. "We will let them fulfil their aspirations of providing services without having to be caught up in all the bureaucratic and accounting work that just drags them down." So Mr Patel's offer is simple: a solution to the juggling act of pharmacy, as well as some much needed financial support. It's little wonder Mr Patel expects "a big uptake". And for the many pharmacists struggling to meet their different demands, this may just prove a popular offer.

Kirit Patel on...

... the new medicine service "This is our first opportunity to show that pharmacy is under-utilised and has much more to give. But I feel that the payment structure has been made unnecessarily complex and I can't understand why it wasn't simpler."

... moving towards a service-based contract "The burden on pharmacists is high and their ability to manage change and be able to delegate is crucial."

... 100-hour pharmacies "Many 100-hour applications are made by people who don't have any economic sense about pharmacy. They commit to leases on the expectation of doing a lot of business, but the cost of running those hours is phenomenal."

... customer service "If you like a restaurant, no matter how good it is, you don't go back if you get bad service. Pharmacy is no different."

... business "Many businesses fail because of a lack of cash flow and poor or non-existent management information. This is our strength."

Tips for your CPD entry on financial pressures

Reflect Do I understand how current and upcoming issues such as NHS cuts, consumer confidence and 100-hour pharmacies may affect my pharmacy business? Plan Use this article and other resources at www.chemistand druggist.co.uk/business to consider how current and upcoming financial pressures could affect my business. Act Adjust my business plan and forecasting to reflect current and upcoming financial pressures and the risks to my business. Evaluate Is my business better prepared for and able to weather current and upcoming financial pressures, and therefore maintain a reliable service to patients?