Pharmacists confident of business growth, finds Lloyds Bank survey
Business Almost all pharmacists expect to provide more primary healthcare service in the next five years, and nearly half expect profits to grow in the next year
Pharmacists' confidence in their business prospects has surged in the past six months, with 81 per cent expecting to provide more services over the next five years, according to research by Lloyds Bank.
For the first time in three years, pharmacists are more confident about their businesses than GPs and dentists, found the bank's latest Healthcare Confidence Index, released last week (April 8).
Nearly half of the 81 pharmacist respondents, surveyed between October and February, expect their profits to grow in the next 12 months. Ninety four per cent plan to prepare bids to provide additional NHS services over the next five years.
Lloyds also found that 34 per cent of respondents would encourage their son or daughter to enter the profession, compared to 17 per cent six months ago. Only 7 per cent said they wanted to leave the profession.
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The outlook for the sector is positive but the climate is still challenging, says contractor Graham Jones |
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The bank's confidence index, which is based on the survey and ranges from -100 to +100, found that the sector's short-term confidence has increased from -23 to +7 in the past six months. |
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GPs had a more pessimistic outlook on their business prospects, with their short-term confidence hitting -34. Ninety five per cent of the 195 GP respondents expect financial pressures to increase over the next five years. Kevin Nichols, managing director of financial and management service provider The Pharmacy Consultancy, said morale within community pharmacy was climbing. This was evidenced by the growing number of pharmacy owners looking to develop larger networks to help deliver more NHS services, he said. The sector's optimism was being "further propelled" by an increasing number of first-time buyers entering the market and more pharmacies relocating into larger health centres, he said. However, contractors responded with caution to the survey, predicting that although there will be greater opportunities for the sector in the coming years, finances will still be tight. |
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Pharmacists' business outlook● 34% would encourage their son or daughter to enter the profession, compared to only 17 per cent six months ago ● 84% expect consolidation within the sector in the next five years ● 81% "definitely" expect their pharmacy to be undertaking more primary care services over the next five years ● 46% expect their profits to grow in the next 12 months ● 81% plan to expand their business in the next five years Source: Lloyds Bank survey of 81 pharmacists, conducted between October 2013 and February 2014 |
Hitesh Dodhia, owner of Parade Pharmacy in Hertfordshire, agreed that the "drive" of younger pharmacists would bring success, but warned that the sector faced a battle with CCGs to acquire new services.
He said that profits from dispensing would inevitably decrease over the next few years but pharmacists could make up for the loss by providing unique, one-to-one services to the community.
"Our profit will come from grabbing extra services with both hands," Mr Dodhia said.
Contractor Graham Jones said the long-term outlook for the sector was positive but warned that the current climate was still "very challenging" for pharmacists.
"There are plenty of opportunities on the horizon, particularly around public health services," he said. "Pharmacists' knowledge base of the bidding process and the new landscape is increasing, but there's still a lot of hard work ahead... the finances are ever-tighter."
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