..Information to Pharmacists
    _______________________________

    Your Monthly E-Magazine
    SEPTEMBER, 2002

    Published by Computachem Services

    P.O Box 297.
    Alstonville. 2477
    NSW Australia

    Phone:
    61 2 66285138

    E-Mail
    This
    Page
    Click For a
    Printer-Friendly
    Page
    Bookmark
    This Page

    PETER SAYERS

    Practice Management Perspective

    A National Pharmacy Act- Is It Possible?

    Time flies, and it must be approaching three years since the Wilkinson Report was published after a fairly intensive review into pharmacy practices and levels of competition.
    Apart from the pages of this magazine, there has been very limited continuing discussion and comment.
    The CoAG working group had to finish its commentary before the states could harmonise their coordinated response, which was hopefully to encourage a universal Pharmacy Act to replace existing models currently in place in the various states and territories.

    Well, the CoAG Committee (and the working group to that committee) have now published their commentary, and the final report is accessible through the following link: (http://www.health.gov.au/haf/pharmrev ).

    However there is no universal national Pharmacy Act model in sight.

    I have long considered that the restrictions imposed by the various Pharmacy Acts were not in Pharmacy's best interest, and much of what is in the final report makes good reading.

    At the national level, we have had a model system of a Poison's Schedule that has been in place for many years. While the states maintain control of the sale of poisons within their own precincts, state legislation (with some minor differences) mirrors the national model.
    Are we to have a national Pharmacy Act?
    It would make a lot of sense now that there is a basis to establish one, and it would be a shame if all that governmental effort was wasted, and dissipated back into the long established parochial state models.

    However, with the limited enquiry that I have been able to make to date, it would seem that the states and territories are going to continue on their independent way, and are producing versions that do not go anywhere near the scale of recommendations made.
    It is also apparently being done in relative secrecy, which seems to be leading up to a "done deal", with input from a select group of people only.
    Given all the publicity surrounding the original Wilkinson Review, why the deafening silence now?

    The final CoAG report has a recommendation for a corporate pharmacy model, which is excellent.
    However, the recommendation is tempered by the elimination of minority shareholders.
    This is one of the recommendations that I find difficulty in understanding .
    Only "near relatives" need apply.
    My concern is that we have a large group of people with Pharmacy's interest at heart viz. pharmacy assistants, pharmacy technicians and pre-registration pharmacists.
    All of these people are employees and I find it difficult to exclude them from having a financial interest in the business in which they are working.
    The concept of employee shares (which have to be divested if you no longer work in the business) is not new, and needs to be considered.
    Considering that this important line of people (excluding preregistration students) is going to become more qualified through various certificate and diploma courses, (hopefully with credits attached should they wish to proceed to a pharmacy degree), why discourage them from holding a financial interest?

    The simple concept of having pharmacies incorporated as "exempt" companies is straightforward to me. Other writers to this publication have illustrated an exempt company means legally, a public company cannot have direct, or indirect interest in such a company.
    Surely this approach would remove the conflict predicted in the final report regarding minority shareholders?
    It would certainly remove the tension of a pharmacy wholesaler structured as a minority shareholder.
    This simply could not occur, if the pharmacy corporation had exempt status.
    But why eliminate all minority shareholders?
    Are we about to shoot ourselves in the foot again?

    It is reliably reported that most of the states and territories are going to tinker around the edges and not develop legislation that might just be exhilarating in allowing full market and business freedoms, while carefully protecting the profession, and simultaneously allow only majority pharmacist effective control.

    For example, it seems that NSW might allow the total number of pharmacies a pharmacist can own, to a maximum of six.
    Why not unlimited ownership?
    Why not take the plunge across the board and go to the full extent for everything that the CoAG committee recommended?

    Against this backdrop there was also a whisper that one state may legislate for pharmacist prescribing.
    Now this is an interesting turn of events, and shows some progressive thought.

    In the UK, pharmacists can become eligible prescribers at two levels viz as a dependent prescriber or an independent prescriber.
    Dependent prescribers are those pharmacists who have accreditation similar to our consultant pharmacists here in Australia, and practice in close association with a GP (usually in the same building).
    These pharmacists serve a two year "apprenticeship" by prescribing under a strict protocol, with prescriptions being signed off by the GP. Independent prescribing comes post "apprenticeship" and allows for pharmacist initiated prescriptions, again under agreed protocols.

    Clinical nurse practitioners in most western countries (including Australia) already have limited prescribing rights. Through the type of training pharmacists receive, it ought to be a natural progression for a pharmacist to move into a prescribing stream.

    In Australia, because of the way consultant pharmacy is constructed, such a move could produce a degree of tension if the consultant pharmacist/prescriber was the active owner of a pharmacy.
    A conflict of interest could definitely emerge, and it is here that Pharmacy Acts assume importance.

    It is this type of process that should be commented on by the profession at large, in an open and creative fashion. And what emerges ought to be able to be incorporated into a national Pharmacy Act model, for adoption by all states and territories.

    When the Wilkinson Review was undertaken, cognitive services in pharmacy had not developed to any extent. The Review encouraged their development, but could not plot many recommendations, because of a lack of knowledge as to scale and direction.
    With the various Pharmacy Acts coming up for review, does this not highlight a need for a more ongoing process to keep pace with pharmacy professional development?

    The Wilkinson Review also suggested that Pharmacy Boards scale back their intervention into the business activities of pharmacists and concentrate only on professional aspects.
    This I agree with, because it frees up pharmacists to form a range of alliances, now necessary for business survival.
    For example, I recently read a report where the Priceline chain of variety stores was going to open its first pharmacy in Victoria. Obviously this report is a bit exagerated, because Priceline is a corporation which does not appear to have all of its shareholders as pharmacists.
    Certainly there is a distinct pharmacy "flavour" in the Priceline presentation, and there may even be some pharmacist investors involved, but it is my guess that one or more Australian pharmacists have formed an alliance with Priceline to either lease space, or take on a Priceline franchise.
    The mechanics do not really matter.
    I only use the example to illustrate one method of survival, where the commercial aspects of a pharmacy are delegated or controlled by an entity with appropriate skills, leaving pharmacists to do what they do best. It is a useful alliance and a good fit. It should produce a successful pharmacy model.
    Legislation in a number of states would have prevented this from occurring, so obviously there are some "insiders" who are aware of impending changes and are gearing up to take full advantage.
    And why not?
    My only regret is that the process has not been open and available to all.

    This article is not meant to be an expert critique on the various Pharmacy Acts.
    It is an expression of frustration that after all this time and investigation, it may still be some time before we have a national Pharmacy Act model, a single registering authority, and no shackles to impede business development.
    As a profession, we certainly need to go through a simplification process, for much of the complexity and frustration of carrying on the business of a pharmacist, is self inflicted.
    Personally, I am anxious to see what impediments may have been put in place for cognitive services.
    Consultant pharmacists need to be given independence, and freedom to develop opportunity in their own right (not necessarily tied to a community pharmacy).
    We can only wait and see.


    Back to Front Page