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Pharmacies facing closure if Department of Health continues to underpay warns Medway business owner

Vital community pharmacies are facing closure unless the government reimburses them fairly, it’s been warned.

Amid uncertainty around Brexit prices for every day medication have soared, with many independent businesses now operating at a loss.

Pharmacies pay suppliers and are then reimbursed by the Department of Health which negotiates a fair price with the Pharmaceutical Services Negotiating Committee.

Community pharmacies could be a thing of the past if prices continues to rise
Community pharmacies could be a thing of the past if prices continues to rise

But in many cases that agreed figure is far lower than what the shops are forking out.

The DoH says it makes up any difference after a year but business owners say when they’re making a loss 12 months is too long to wait.

Last month blood pressure tablets Losartan were setting stores back £12.96 for 28 100mg tablets, but the DoH only agreed to pay £7.17.

Epilepsy medication Topiramate was costing £28.28 for 60 100mg pills. The DoH negotiated £20.27.

While a pack of 10mg strength angina medicine Nicorandil was£6.18, £2.58 more than the DoH agreed to pay.

Director of Merlin Pharmacy, in Silverweed Road, Chatham, Arun Jangra said if the current situation continues he faces financial dire straits as early as next month.

He’s had to stockpile certain medicines due to the volatile market conditions, adding to his financial backlog.

Last month he bought 100 packets of gout medication Allopurinol, losing £2 a time.

The same amount of anti inflammatory Naproxen lost him £350.

Arun Jangra, of Merlin Pharmacy, Silverweed Road, Chatham
Arun Jangra, of Merlin Pharmacy, Silverweed Road, Chatham

He added: “I don’t know why the prices are so high at the moment, Brexit plays a part or there may have been factory closures but many pharmacies are now operating at a loss.”

He says the DoH don’t seem to care when the discrepancies are flagged up and questioned whether it’s in its interests for community pharmacies to close as the government favours a ‘click and collect’ dispensary model.

He added: “I think it’s short sighted. Yes it might be cheaper but community pharmacies are vital lifelines for some people, offering free advice and sometimes delivery to people with mobility issues.

“The outlook is very bleak.”

Companies are also complaining it’s fairer in Scotland.

While the rates for Topiramate and Nicorandil were the same on both sides of the border, Scottish pharmacists buying Losartan were £3.33 better off despite using the same wholesalers.

‘The government know the cost but not the value’ Jas Thind

In Medway78% more patients are opting to order their prescriptions online than two years ago.

That’s described as a “huge success” by the Royal College of GPs and “incredibly positive” by the NHS.

In 2016 an All Party Parliamentary Group warned £170 million of government cuts will see up to 3,000 (roughly a quarter) of pharmacies close.

At the time the DoH confirmed more cuts were planned.

A DoH spokesman said it is “committed” to fair reimbursement.

The department recognised a 12-month delay can be hard for businesses but said it is a long established model so it is expected contractors would be familiar with it.

Mr Jangra said: “It’s all well and good them saying the following year they’ll make up the difference but if I said to you ‘you need to pay to come to work for a year and in 12 months we’ll look at paper work and see how much we can pay you’ would you do it?”

It’s already too late for his colleague Jas Thind who sold his business in Lyminge, near Folkestone, after 17 years because for months he’d been struggling to make ends meet.

It’s now in the hands of a chain which, while still struggling (last week Boots announced a 4.1% fall in profits), are coping better.

Mr Thind said it’s time for the government to be transparent about their intentions so a consultation can be held on what type of model the public want.

“The government seem to know the cost but not the value. The value is patient wellbeing and I fear a less personal service will have a big impact on that,” he said.

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