..Information to Pharmacists
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    Your Monthly E-Magazine
    OCTOBER, 2002

    Published by Computachem Services

    P.O Box 297.
    Alstonville. 2477
    NSW Australia

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    61 2 66285138

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    JON ALDOUS

    Hospital Pharmacist Perspective

    Complexity and Pharmacy Payments

    While employee pharmacists have generally benefited from healthy market wage rates and flexible conditions the same cannot be said for pharmacy graduates, or public hospital pharmacists who are tied to their award conditions.

    APESMA, the union representing pharmacists along with other health professionals, published figures in their July newsletter showing a 28% increase in the market rate for pharmacists over the last 5 years.
    This is well in excess of that achieved in the public sector (where increases are generally smaller, in the range of 3-5% pa).

    This month APESMA landed its first real blow against the Pharmacy Guild, winning an increase in the award wage for pharmacy graduates, which will also bring all states into line.
    The increase is minimal in NSW but quite considerable in some states and will be phased in over the next two years.
    This has brought the Community Pharmacy Award back into the spotlight at a time when the higher market rates for pharmacists have meant its importance has diminished.

    It is interesting to compare the retail sector Award with that in most public hospital settings.
    In retail setting where pharmacists generally have more supervisory capacity, and in many pharmacies work without other pharmacists, it is generally easier to work into an in-charge or management capacity, which carries greater earning power.
    However, in a hospital setting there are more layers of management and more of a pyramid structure.
    A smaller percentage overall of pharmacists can fill the top administrative or managerial roles and thus the major career path for most hospital based pharmacists is through improvement of clinical skills and managing a smaller unit or area.
    For this reason clinical skills allow pharmacists to move through the pharmacist grades without needing to take on a management role.

    In the community pharmacy setting in 2002, however, the roles filled by pharmacists are becoming as complex and varied as those in the hospital environment.
    Pharmacists are now performing in clinical roles, as consultants and medication review specialists, but how much should they be paid?
    The market currently sets a generous wage rate for these pharmacists, but if the market were to change in ten years time, and pharmacists were in surplus (as some are predicting with the recent expansion of student intakes), how much could these pharmacists be paid?
    These activities may prove to be the most desirable career path for many pharmacists and they may not be able to ask for a premium over the award rate as they are now.
    Should plans be made now to set renumeration in place for pharmacists who work under the Community Pharmacy Award but who choose not to progress their career through a managerial pathway?
    These pharmacists could progress through the clinical grades in the hospital system and this may prove a more lucrative career option if the market can no longer bear the premium wages now on offer.

    The complexity of pharmacy has increased tremendously in the last ten years.
    Have you considered how many new drugs have appeared?
    How much more paperwork is required to do the same job?
    Management skills must be sharper than ever to compete with grocery and beauty outlets in an increasingly deregulated marketplace.
    Yet the top Award wage rate for an experienced pharmacy manager in 2002 is $25.79 per hour.
    Consider the complex job performed by a manager combining retail skills, with the professional skills and standards expected of all pharmacists and it seems inadequate.
    Retail managers in other fields can earn $20-25 per hour without the professional role of a pharmacist.
    The market seems to be setting a higher rate at the moment, and you can only hope that steps are taken to secure wages at these levels in the long term should the predicted surplus eventuate.
    Remember it is these award rates used in negotiations with the Federal Government for PBS renumeration. While the award rate remains considerably below the market rate pharmacy margins are squeezed by inadequate renumeration.
    A more accurate Award rate, reflecting the real cost of employing pharmacists at any time could ensure higher levels of remuneration and more realistic margins.


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