Google AI


Modern Australian

What is the Pharmacy Guild of Australia and why does it wield so much power?

  • Written by: Lesley Russell, Adjunct Associate Professor, Menzies Centre for Health Policy, University of Sydney

Across Australia around 5,700 community pharmacies are responsible for dispensing the majority of prescriptions subsidised under the Pharmaceutical Benefits Scheme (PBS).

These community pharmacies are represented nationally by the Pharmacy Guild of Australia.

Every five years the Australian government consults with the Pharmacy Guild before delivering the Community Pharmacy Agreement. This agreement governs how pharmacies are reimbursed for dispensing medicines listed on the PBS, and the sorts of services you can access at the pharmacy.

The 6th Community Pharmacy Agreement expires on June 30, 2020. Negotiations are currently underway for the 7th agreement, expected to cost some A$20 billion over five years.

Read more: Explainer: what is the Community Pharmacy Agreement?

The Pharmacy Guild is the major player involved in negotiating with the government how much money is spent through the Community Pharmacy Agreement, and where the money goes.

Given the funds at stake, and the importance of ensuring the availability of PBS medicines, it’s pertinent to look at what the Pharmacy Guild is and where its power comes from.

Ensuring community pharmacies are sustainable

The Pharmacy Guild of Australia was founded in 1928 as an employers’ organisation for the owners of community pharmacies. Pharmacy owners must be registered pharmacists, but the pharmacy profession is represented separately by the Pharmaceutical Society of Australia.

The Pharmacy Guild’s key focus is the financial sustainability of community pharmacy. Over the years they’ve sought to protect pharmacists’ income generated from the PBS (between 41% and 46% of their total income, depending on location).

This is highlighted, for example, by the 2013 fight over dispensing fees for cancer drugs. The Pharmacy Guild was able to recoup A$82.2 million to increase dispensing fees for chemotherapy drugs, after it protested changes in funding arrangements for chemotherapy services left pharmacies with a A$277 million shortfall.

Similarly, the Pharmacy Guild was able to coerce the government into providing A$210 million in the 2017-18 budget to community pharmacies as compensation for lower than forecast prescription volumes.

What is the Pharmacy Guild of Australia and why does it wield so much power? Negotiations for the 7th Community Pharmacy Agreement are currently underway. From shutterstock.com

Further, the Pharmacy Guild has fiercely and successfully opposed efforts to change the location rules which govern the clustering of pharmacies, to allow pharmacies in supermarkets, and other efforts to increase competition.

The guild has also pushed for pharmacies to receive funding to deliver primary care services to patients. Both the Pharmacy Guild and the Pharmaceutical Society of Australia regard the community pharmacy sector as an ideal environment to host preventative health initiatives, such as immunisations and screening services.

Under the 6th Community Pharmacy Agreement, funding for these sorts of services has exceeded A$1.26 billion. It’s highly likely funding for these activities will be increased in the next Community Pharmacy Agreement.

Read more: Pay pharmacists to improve our health, not just supply medicines

Despite the fact uptake of these programs is described as “alarmingly low”, this has generated turf fights between doctors and pharmacists.

Some of the medical opposition is because evaluations of a number of long-running pharmacy programs have failed to demonstrate their value. In most cases, there has been insufficient data to enable any assessment of the impact of these programs on health outcomes.

So why are they so powerful?

The lobbying capabilities of the Pharmacy Guild executive and its members, the reach into every community, and the substantial political donations they make, mean politicians are always nervous about treading on community pharmacies’ toes.

Community pharmacies have a unique ability to garner public support for their causes from loyal customers. This can be a potent deterrent for any politician proposing changes the Pharmacy Guild views as adverse.

We saw this during the 2013 election campaign when customers were petitioned to save their local pharmacies, supposedly under threat after a move by the Rudd government to reduce the price of prescription medicines.

What is the Pharmacy Guild of Australia and why does it wield so much power? Community pharmacies are often able to cultivate loyal customers. From shutterstock.com

In terms of political donations, the Pharmacy Guild was ranked as the 14th largest political donor in 2017-18 (the latest period we have data for).

Their political contributions in that financial year totalled A$220,000. More than half of this (A$139,500) went to the Labor Party, with the remainder going to the Liberal and National Parties.

Most recently a donation of A$15,000 to One Nation generated controversy.

Read more: How rivalries between doctors and pharmacists turned into the 'turf war' we see today

The Pharmacy Guild has been open about its ability to work within political processes, regardless of who is in government.

Its many critics, however, see the approach as one of manipulation. Former chair of the Australian Competition and Consumer Commission, Graeme Samuel, has described some of the guild’s tactics as “political blackmail”.

Towards the 7th Community Pharmacy Agreement

We don’t yet know what’s going to be contained in the 7th Community Pharmacy Agreement.

Regrettably, despite the large sums of money involved and the importance of community pharmacy as a public asset, there’s no transparency around the negotiations.

There’s also been little apparent consultation with other key stakeholders, particularly consumers. The Pharmacy Guild – and with it the interests of its members – appears, unsurprisingly, to be driving where health minister Greg Hunt will go with this agreement.

Read more: Relaxing pharmacy ownership rules could result in more chemist chains and poorer care

Authors: Lesley Russell, Adjunct Associate Professor, Menzies Centre for Health Policy, University of Sydney

Read more http://theconversation.com/what-is-the-pharmacy-guild-of-australia-and-why-does-it-wield-so-much-power-127315

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...