A total of 129 properties were rented out to health centre pharmacies by NHSPS as of June 14, according to data obtained by C+D via a freedom-of-information (FOI) request.

Meanwhile, as of March 23, 2020 – when lockdown restrictions were first implemented across the UK – the NHS landlord rented out a total of 135 properties to health centre pharmacies.

“Six lease contract were surrendered or terminated,” it confirmed to C+D.

C+D also asked NHSPS to specify the reasons behind the pharmacies’ decision to hand back their contract, but the NHS landlord said it does not hold that information.

NHSPS operates a system where rent for pharmacies located in health centres is calculated based on the number of patients registered at a surgery – which it previously told C+D is “in line with current guidance”.

But many contractors and pharmacy organisations have suggested that this approach is “no longer fit for purpose” and needs updating, with the Association of Independent Multiple pharmacies (AIMp) inviting all affected contractors in June to sign a letter urging NHS and private landlords to adopt a “more realistic approach for calculating rents”.

Read more: Pharmacy rents: DH working with NHS landlords to ensure ‘fair’ approach

The letter was signed “by a significant number of pharmacy contractors from across the sector, including single independents, pharmacy groups and some Company Chemists’ Association members”, CEO Leyla Hannbeck told C+D today (August 15).

“The letter was submitted to NHSPS and subsequently their senior management team asked to meet with us,” she added. The meeting is scheduled to take place on Thursday (August 18).

“We are hoping to put across the key points with regards to the challenges that pharmacies are facing with reference to the rent reviews and try and achieve an optimum result on behalf of the sector,” Dr Hannbeck said. “Rent reviews have affected many pharmacies”.

Responding to the findings, a spokesperson for NHSPS told C+D that it continues to “proactively engage with our pharmacy customers – including a forthcoming meeting with AIMp – to offer our support, ensure communities can access pharmacy services and that value for the NHS continues to be obtained and protected”. 

NHSPS “will also engage with individual pharmacy operators to explore options and assist with lease terms where there may be potential financial difficulties”, they added. 

NPA: “Rents are based on an outdated calculation”

 

In a letter to NHSPS chief executive Martin Steele in May, National Pharmacy Association (NPA) chief executive Mark Lyonette encouraged the NHS landlord to “take supportive action” in response to the challenges faced by the sector.

NPA director of corporate affairs Gareth Jones told C+D today that the six closures of practice-based pharmacies uncovered by C+D “should serve as a warning to landlords about the current risk of patients losing access to services and of landlords themselves losing income from tenants”.

Landlords must “take supportive action now”, he added.

Read more: Lloydspharmacy slams NHS landlords for lack of support with health centre pharmacy rents

“Rents are based on an outdated calculation, which on top of the underlying intolerable financial pressures on community pharmacy as a whole is putting many health centre pharmacy services at significant risk,” he said.

Earlier this year, NHSPS slapped down Lloydspharmacy and Rowlands’ requests for co-located rent reductions, while in May a pharmacy contractor with branches across east London claimed to C+D that NHSPS had suggested the rent for his co-located pharmacy could increase by as much as 220%.