Independents better placed to cope with 6% funding cut
Smaller pharmacy businesses can "be more nimble" than large chains, according to Shawbrook Bank head of pharmacy Sebastian Miles
Independent contractors in England will cope with the 6% pharmacy funding cut better than multiples, a finance expert has predicted.
Independent pharmacies can “be more nimble” than larger chains and better adapt to the needs of local populations, according to Sebastian Miles, head of pharmacy at funding provider Shawbrook Bank.
Small business owners have more control over "what happens on the ground" and are not restricted by a broader business model, he told C+D last week (January 15).
Ability to adapt
The “bottom line" will depend on contractors' ability to “invest in new revenue streams and [make] efficiencies”, Mr Miles said.
“They could take advantage of locally commissioned services or adapt their retail counter to better suit the market,” he said.
Contractors should use the six months before funding drops in October to "embrace" delivering services, Mr Miles stressed. "[Try to] better utilise anything that is outside the pharmacy global sum and [the funding cut] won't affect your revenue elsewhere," he added.
Earlier this month, Mr Miles predicted the cuts could drive down locum rates as contractors look to make savings.
How are you preparing for the funding cuts?
We want to hear your views, but please express them in the spirit of a constructive, professional debate. For more information about what this means, please click here to see our community principles and information