The Independent Pharmacies Association (IPA) last week (September 4) revealed the “alarming outcomes” of a survey and analysis into community pharmacy finances, which highlighted the huge reduction in operating profits some of its members have experienced.
Financial analysis of “a random selection” of eight IPA member pharmacy groups – representing some 1,500 branches – found that they had “collectively” suffered a “798% reduction” in operating profits compared to the previous year, it said.
This represents an “overall loss of £4.6 million” across the pharmacy groups, it added.
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In an email to pharmacy minister Stephen Kinnock requesting an “urgent meeting”, IPA chief executive Dr Leyla Hannbeck stressed that “there can be no doubt that the sector is in deep crisis”.
Survey responses from “over 2,500 pharmacy branches” across England and Wales also revealed that 96% did not feel “adequately compensated” for the services they deliver “under NHS arrangements”, she said.
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Some 93% of respondents agreed that “changes to national insurance, tax policy and minimum wage had a negative impact on pharmacy operations” and 41% said they felt “very pessimistic” about the future of the community pharmacy sector, she added.
The survey also revealed that “a shocking 50% of respondents said they have considered permanent closure of branches over the past year”.
“Time for change”
“Unless there is a change to the status quo, our members fear they won’t be able to meet the government’s aim for them to take a greater role in public health,” Hannbeck said.
“If the sector does not get a fairer [funding] settlement, patients are going to be severely impacted,” she stressed.
One pharmacy responding to the survey told the IPA that “it’s time for change”, adding that “community pharmacies are meant to be the front door of the NHS but have too often been treated like the doormat”.
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The membership body also called for discussions on “the disparity in how community pharmacies are treated and renumerated for flu vaccinations compared to GPs”.
“There can be no justification for GPs being paid more than pharmacies for administering the same jab,” Hannbeck said, adding that there is also no “justification for the fee being frozen yet again when costs for pharmacies are sharply rising”.
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It comes after Community Pharmacy England (CPE) last month announced that the Department of Health and Social Care (DH) has decided to freeze the fee for delivery of flu vaccinations in 2025/26 for the seventh season running, labelling the move as “unacceptable”.
The DH told C+D at the time that the fee paid to GP practices for flu jab delivery is set at a higher level in recognition of the additional task of call-recall to proactively reach out to eligible patients, which pharmacies do not currently offer.
