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“The important role of local pharmacies in The Australian Health System has never been more visible than in 2020, when the state of emergency of COVID and bushfires in several states weighed and overburdened the primary health system. In these difficult times, Community pharmacies have kept an open mind to serve patients and ensure the availability of medicines and other Pharmaceutical Benefits Scheme products and services, including vaccination,” said Mr. Tambassis. This pioneering agreement supports the implementation of a number of important Australian government commitments, including access to Commonwealth-subsidized medicines, drug safety, support for aged care, support for pharmacies in areas, rural and remote areas, and reforms to improve access to medicines for Aboriginal and Torres Strait Island communities as part of the “Closing the Gap” government initiatives. Since 1990, the remuneration received by pharmacists for the dispensing of drugs from the Pharmaceutical Benefits Scheme (PBS) and the regulation of the location of pharmacies have been governed by a number of agreements between the Australian government and the Pharmacy Guild of Australia (the Guild). Over time, these agreements have expanded their scope and now offer professional pharmacy programs and services. The Seventh Community Agreement on Pharmacies (7CPA) supports consumers` access to pharmaceutical Benefits Scheme (PBS) subsidised medicines through pharmacies across Australia. The signing of 7CPA demonstrates the government`s ongoing commitment to helping Australian patients through a community pharmacy. Experience shows that most companies will do nothing, which means that their gross profit is eroding, while overheads remain the same, resulting in less profit or, in many cases, actual losses for the pharmacy owner.

The most skilled operators will look for ways to minimize lost margins and develop and develop their business in new market conditions. For example, a pharmacy may implement a strategy to increase the size of the basket and the average value of the transaction by offering bundled packages of complementary products. The Community Pharmacy Agreement (CPA) is an agreement between the Pharmacy Guild of Australia and the Commonwealth Government that describes the amount of compensation for the dispensing of drugs covered by the Pharmaceutical Benefits Scheme (PBS). “The Pharmacy Guild thanks Health Minister Greg Hunt and the Department of Health for securing this agreement for the benefit of all Australian patients who need their local pharmacy for professional medicines, advice and services,” said Mr. Tambassis. “PSA fought incredibly hard to represent pharmacists in this agreement. Given the likely effects of the COVID 19 pandemic, this agreement has been particularly difficult,” said PSA National President Professor Chris Freeman. While the details of 7CPA remain secret, a major concern for pharmacists is the proposed increase in maximum doses and the impact this will have on the profitability and potential viability of many Community pharmacies across Australia. Under the current compensation model, pharmacies receive a tax of $7.39 for finished prescriptions, as well as the Administrative, Processing and Infrastructure Commission (AHI) of $4.09 for a publicly traded brand with a list price of up to $180.

Posted on December 20th, 2020 | filed under Uncategorized |

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