If
Pharmacy was a well-led business/profession, there would be no underlying
concerns when a Woolworths comes on to the scene, because there
would be that inner confidence of individuals, and the cohesiveness
around leadership, that would dissipate concerns and develop genuine
strategies to cope with all levels of competition.
This does not seem to exist.
Instead, we
have the national leader of the Pharmacy Guild of Australia (PGA)
going to print in the Australian Journal of Pharmacy on two occasions--one
to give spurious arguments against a corporate pharmacy model,
the other to publicly admit defeat in preliminary negotiations
with Woolworths, to try and head off their involvement in pharmacy.
Why he was even bothering to talk to Woolworths in the first place
is a mystery!
To tell the world about it is simply inept!
Since then,
we have seen some party-political leaders making statements of
support for pharmacy (The Nationals federally and state Labor
in NSW) and possibly others I am unaware of.
It must be comforting for some to know that there is at least
a degree of public support for pharmacy's "cottage-garden"
approach.
This will be as a direct result of PGA lobbying as a first line
of defence for their existing flawed strategy.
Now I say flawed, and I do not resile from that comment, because
there is no Plan B to go with that strategy.
Political protectionism is only valid if you are using the process
to buy time to develop a pharmacy model alternative, and one that
can be built to stand up to a Woolworths or a Coles or a Walgreen.
As there is no evidence of this, pharmacists are gearing themselves
to scramble for the best options that they can individually negotiate.
This is what Roger Corbett will skilfully exploit.
There will be no long term winners in this "scramble"
because those pharmacists will have to sell their sole to survive.
The pharmacists that are left behind will be collectively weaker
as a result, and will be easily "picked off".
It is this
image of a weak PGA (despite its lobbying successes) that will
encourage Roger Corbett to "go for broke"!
Reinforcing
these feelings of inevitability are the range of "bitter-sweet"
comments posted on AuspharmList by individual pharmacists, ranging
from the exasperated to the resigned.
The PGA should be listening-and I mean really listening-- to these
collective comments, and they should be moving to generate some
positive feelings through positive leadership.
Do they have
the capacity?
Judging the
current performance, I doubt it!
Does this
have to be?
Hell no!
It would not
take too much imagination to set up a task force that draws from
a wide range of pharmacist "thinkers".
It could be strengthened with a range of people outside of pharmacy,
but who possess specific skills and talents, and who could objectively
guide pharmacists in a world dominated by global corporates.
Perhaps a range of well rounded options can then emerge, that
when put together in varying permutations and combinations, will
contain a range of pharmacy practice models, with directions that
will match individual pharmacist apirations.
This should be done well before governments impose their own version,
glimpses of which were revealed through the CoAG committee in
the wake of the Wilkinson Review.
Or face the alternative of a Woolworths view of pharmacy actively
supported by government.
The terms
of reference of such a task force could also be broadened to include
rationalisation of the various pharmacy bodies.
Do we need so many?
Are they overlapping?
How should their activities change to accommodate the models of
pharmacy recommended?
This latter point should be exercising the mind of every PGA executive
and manager right at this moment. Remember, it is your jobs and
your future that are also on the line.
Remember too
that the PGA have a conflict of interest with any corporate model,
in fact any model outside of the "cottage garden" variety.
These are the models that will not likely be members of the PGA,
simply because services and activities would not "fit"
with pharmacies strong enough to stand on their own two feet.
That is, unless the PGA changed its delivery of service structure.
In a very
real sense, the PGA is between a rock and a hard place.
If it cannot fend off Woolworths pharmacies, it will end up with
a diluted group of members, weakened by their attitudes and values
in supporting an outdated pharmacy model, weakened also by their
loss of numbers.
If the PGA is seen to support a corporate model, all the myths
of the past will emerge as a result of the "cultural infection"
initiated by Boots the Chemist, when it attempted to enter Australia
half way through the last century, with its own corporate, non-pharmacist
owned model.
This outdated "cultural infection" is still being passed
on from generation to generation of pharmacy leaders, and the
mould needs to be broken.
From the correspondence
I am receiving, I know that Woolworths have been in discussion
with pharmacy wholesalers, that Woolworths can deliver traditional
health services at a cheaper price (because of its infrastructure
and supply chain reforms-see the research of Con Berbatis in this
edition) and that it has more than enough interested pharmacists
to launch its program successfully.
I would refer you to an article by corporate strategist Dan Da
Silva also in this edition, where he points out that if one of
the major pharmacy wholesalers falls prey to Woolworths (or similar),
pharmacy's ability to develop successful strategies is deeply
impaired, both defensive and offensive (follow
this link).
What Woolworths can't do is give the heart and soul of professional
purpose-only an independent pharmacist or pharmacist group can
deliver that, and the difference is noticeable (see letter from
South African pharmacist below).
Also from
this point onwards, any serious pharmacists will have an extra
cause for concern, for they now face the prospect of losing control
over a substantial component of the direction of their business/professional
activity.
If you have any doubts in this regard, read the following comment
from a South African pharmacist who has been following the Wooworths
issue through AuspharmList, and through correspondence privately
with Australian pharmacists. This item is from a private correspondent
(since posted on AuspharmList):
"I
am watching all the pharmacist's discussions on Auspharmalist
and it is very interesting how Woolies want to get hold of pharmacy
ownership in Australia, hopefully the Guild can stop them.
In South africa New Clicks have bought a lot of private pharmacies,
about 70, and I can already see and hear from patients that their
service levels and standards have dropped considerably because
'we only work for salaries now' and ' it is not our risk/responsibility
anymore'.
I am registered to do all the APEC exams, because I feel that
pharmacy is still strong in Oz with the Guild behind ownership,
hope it stays that way!
There are also Medicine chain pharmacies whose ownership belongs
to non-pharmacists and they are practically bankrupt now.
Also, the pharmacists working for New Clicks say to me that their
bosses do not understand pharmacy and do not know the business,
and therefore they feel frustrated and not motivated anymore.
Just shows you what a change of ownership can do to a profession.
But, hey we live in Africa and here anything goes: doctors' dispensing,
corruption, crime, fraud and ownership and the downfall of the
community with it all.
Maybe you can discuss this on AusPharmlist.
Regards,
very frustrated pharmacist from south Africa"
The New Clicks
organisation mentioned above, is of course, the Priceline organisation
here in Australia.
Priceline is already plugged into Australian pharmacy in a small
way at the moment, but it is drawing "know how" from
the pharmacists they are associated with. This information is
being developed and stored against a time when Pharmacy legislation
around ownership is relaxed, and Priceline can then charge off
in their own direction.
If they succeed in buying into Mayne, they become a strong competitor.
This is really a form of rape, and as one philosopher once put
it "when rape is imminent, lie back and enjoy it".
Somehow, I cannot align with that approach, and I suggest a vigorous
fight is more in keeping with what should be happening. Rape will
only occur if you are the weaker of the two participants, morally
and physically.
Woolworths
is adopting a similar strategy, the only differences being cosmetic
in nature (details in the
October edition).
So I would
now see the challenge of developing Plan B back with John Bronger
and the PGA, because of the central and pivotal role they play
in community pharmacy.
Will there be the vision and integrity to lead their flock out
of the wilderness, or will they stay in their insular world, propping
up a set of outdated values for a model of pharmacy that will
not survive.
The "grass
roots" had better start stirring, and an insistence of the
development of a task force would seem to be a good starting point.
Don't let
Woolworths (or anyone else) in, don't allow open ownership and
control, but do develop equivalent corporate structures that will
deliver professional health care at the lowest possible prices.
That has to
be the message!
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