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Sector bodies: Pharmacies may struggle to pay back funding advance

Pharmacy bodies have called on the government to provide new funding for pharmacies

Paying back advanced funding released by the Department of Health and Social Care (DH) to tackle COVID-19 could cause pharmacies in England to close, sector bodies have warned.

Sector bodies have voiced concerns following yesterday’s (June 30) announcement by the DH and the Pharmaceutical Services Negotiating Committee (PSNC) that pharmacies in England will receive £20 million in advanced funding.

Leyla Hannbeck, chief executive of the Association of Independent Multiple Pharmacies (AIMp), said that while the funding advance helps, it “doesn’t go far enough”.

“If we have to repay these advances, with or without a repayment model, pharmacies will close,” she told C+D yesterday.

Ms Hannbeck said there has been a “surge in costs caused by coronavirus, script volumes down due to GP surgeries remaining closed and acute patients not presenting for diagnosis or [being] too scared to visit pharmacies”. On top of this, “delivery costs [are] through the roof due to many more patients demanding deliveries who do not qualify for the shielding payment”, she added.

NPA: Long-term settlement needed

The National Pharmacy Association (NPA) chief executive Mark Lyonette said the government needs to “make good on its commitments to meet all the additional costs associated with coronavirus”.

“It’s not clear why the UK government has so far been unable to progress this, in the way devolved administrations have begun to do,” he added.

“Ultimately, we need a long-term financial settlement that allows pharmacies to deliver on ambitions for innovation and improvement, benefiting patients and the NHS,” Mr Lyonette said to C+D yesterday.

If pharmacies have to repay the funding further “down the road”, the settlement “could even make matters worse”, he warned.

CCA:  “Grave concerns”

While it welcomes the funding advance, the Company Chemists’ Association (CCA) chief executive Malcolm Harrison said it has “grave concerns” that pharmacy businesses “will not be able to continue to cope in this unprecedented and ongoing situation without fair and adequate additional support”.

The CCA will “continue to work with both our partners in the sector and with NHS England and Improvement and the DH to make sure that we get reasonable and fair additional funding”, he added.

“The sector needs more than just advances to support cashflow to continue to help patients with their medicines and healthcare needs during this crisis,” Mr Harrison told C+D yesterday.

RPS: Government must “get behind” pharmacy

Professor Claire Anderson, chair of the Royal Pharmaceutical Society’s (RPS) English pharmacy board, said the sector needs “more than another cash advance.”

“We are looking for a sustainable and fair funding settlement for the longer-term,” she told C+D yesterday.

Professor Anderson praised pharmacy teams for working “tirelessly” during the COVID-19 crisis and said “we need to see new money being invested to support our profession to help us deliver health services in the future”.

“The government has said it values the role of pharmacy teams. It is now time they get behind the sector,” she added.

7 Comments
Question: 
What do you make of the advanced payment arrangement?

Eddy Lau, Superintendent Pharmacist

It is like giving you an apple with one hand , snatch it back with the other and slap your face in the process.

Shahan Mir, Community pharmacist

This will adversely affect small independent pharmacies. With increased wholesale prices, the advance is just about helping with covering drugs cost. Over time, with further funding cuts no doubt on the horizon, any payment plan would cripple already fragile finances.

 

sunil maini, Community pharmacist

Obviously pharmacies will close if we have to repay advances!!Even those that manage to stay open,no staff will get pay rises for years to come.Will they stay?I doubt it!!They are being essentially asked to repay all the overtime they have been paid for looking after patients after the last three months.They will be even more de-moralised.Minimum pay rises over last few years,and now no prospect of even inflation linked rises in the future.Taking massive risks to supply meds,some have already said they wish they could have been furlowed.Cheers Boris

 

Soon-To-Be Ex-Pharmacist, Superintendent Pharmacist

Isn't this just stating the bleedin' obvious?

Alexander The Great, Community pharmacist

how are you supposed to budget properly when income and outgoings fluctuate so much. we have no idea how or when this has to be paid back. we didnt even ask for advanced payments.... it was just thrown at us... would have just been better to offer government backed loans if you needed it.

Kevin Western, Community pharmacist

Having listened to the webinar on the proposed new set up of the PSNC and heard that the negotiating team for Pharmacy are divided and some playing their own games, , and, taking into account the fact that some organisations are quite happy to have the pharmacy market reduced, is any of this surprising?

O J, Community pharmacist

I think ultimately patient will be primarily worst off due to fall in quality of the service and obviously the independant contractors solo store/ medium chains will be worse off.

Obviously KR must be loving it. RIP English retail pharmacy.

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