Cuts could cost pharmacies £110k over 5 years
Pharmacy support group Avicenna predicts the government will slash practice payments by more than £15,000 each year – starting in 2016
Funding cuts will hit the average pharmacy to the tune of £110,000 over the next five years, an Avicenna director has predicted.
The independent support group’s non-executive director, Shiraz Hirji, estimated that practice payments will drop by £15,000 in 2016-17. He predicted a further loss of £20,000 next year, rising to a peak of £25,000 losses each year for the following three years.
Pharmacies should prepare for this drop in income by setting out a five-year forecast of their finances and drawing up a business plan, Mr Hirji advised delegates at Avicenna’s conference in Mauritius yesterday (May 31).
Join forces
Pharmacies could also look at “joining forces” with others nearby to to make efficiencies by improving processes, Mr Hirji said. He described this as a “really revolutionary idea”.
They should look at increasing the number of services they deliver, such as flu vaccinations and medicines use reviews (MURs), Hirji suggested.
“Pharmacists tend to spend a lot of time sourcing generics. [This is] saving pennies and yet losing pounds on providing services and other matters they can focus on to increase their sales and their profitability,” he added.
“There’s no point in waiting for the cutbacks to hit you. You’ve got to go back, get proactive [and] make sure that your pharmacy is now ready in all ways to tackle the issues that will be coming over the next couple of years,” Mr Hirji told delegates.
More on the impact of the cuts:
Read how contractors are preparing for the cuts here
An accountant predicts the average pharmacy will lose £19k over 10 months
How will you prepare for the funding drop?
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