Selling product at a profit is the most fundamental rule of retail.
You’re not retailing if you’re giving it away. And if you’re losing money on sales, you’re doing it wrong.
Vote Now: Is it ever justified to refuse to dispense medicine for financial reasons?
Loss leaders aside, nothing is as important as that profit margin – without it there is no business. But for community pharmacy, that profit margin, sourced from its core business of dispensing on behalf of the NHS, is increasingly unpredictable, unsure and at risk of being clawed back.
Read more: ‘This isn’t temporary’: NPA warns of ‘spiralling’ drug costs
Community pharmacy is not unique in finding itself operating a business under extreme pressure but it does occupy a unique place in UK healthcare, and it deserves protection from the elements, like hikes to national insurance, utilities and business rates.
Instead it battles them daily while running a gauntlet of acquisition, reimbursement and clawbacks trying to perform a core business activity for the state.
Read more: A ‘policy wonk’ and the IP shift: Highlights from Pharmacy Forum
CPE’s concessions list evidences a worsening situation in terms of the availability and purchase price of medicines, not to mention the time spent to source them.
There is nothing especially new about dispensing at a loss, but the worsening medicine supply chain combined with the rising cost of doing business has bought things to a head for too many community pharmacies.
It’s why we’re asking a question on a LinkedIn poll that shouldn’t need to be asked but does. Is it ever justified to refuse to dispense medicine for financial reasons?
Thank you if you’ve decided to add your thoughts - the poll will close by lunchtime on Friday, May 29.
