Bubble has burst for the pharmacy sector, say owners

The “bubble has burst” for the pharmacy sector, owners have warned, after they voted in favour of action which could see hours reduced and some services withdrawn.

About 3,400 independent community pharmacies in England, Wales and Northern Ireland took part in the National Pharmacy Association (NPA) ballot, a turnout of 64%.

The majority has voted in favour of taking a number of actions from the New Year in the absence of adequate response from the Government on funding in the coming weeks, according to the trade association.

This could include closing at evenings and weekends, with owners only opening for the minimum required by their contract, and potentially withdrawing from providing emergency contraception and stop smoking services.

We're doing so much stuff now for less money. It's got to the stage now where the bubble has burst. You can tell that by the closures we've had

Matt Harvey, 37, has worked in the pharmacy sector since he had a Saturday job at 15.

He qualified in 2010 and now runs Green Lane Pharmacy in Mossley Hill, Liverpool.

He told the PA news agency: “I think we can’t do any more with what we’ve got.

“We’ve had a 30% funding cut in real terms over the last decade, and our percentage of the NHS budget has decreased despite the NHS budget going up.

“We’re doing so much stuff now for less money. It’s got to the stage where the bubble has burst. You can tell that by the closures we’ve had.

“People are going out of business because they can’t afford to stay open any longer.”

According to the NPA, pharmacies are contracted to open for 40 hours a week minimum, although most are open for 50 hours a week on average.

The trade association estimates about 700 pharmacies have shut in England in the last two years, with more than 1,250 closing in the last decade.

Mr Harvey has been impacted by closures after a number near his branch closed their doors for good.

“The impact on patients has been quite severe – 15,000 patients used those pharmacies,” he said.

“It has also impacted our patients, as they don’t realise why queues are so big.

“It led to quite a bit of unsatisfaction and complaints, and our staff being shouting at by exasperated patients.”

Mr Harvey also spoke of soaring costs impacting his business.

“Over the last 10 years inflation has rocketed, staff wages have increased,” he said. “Unlike general practice we have still paid business rates. All of that has increased.

“It does cut into the profitability of the business and when you have bank loans to pay back that’s when trouble hits.

“The things that aren’t in our contract – like delivering medications and providing blister packs for patients who don’t fall under the Disability Act – these are the sort of things that independents will be looking at to see what can we now do with that.”

Nick Kaye, chairman of the NPA, said last month’s Budget has “intensified” issues in the sector.

“The sense of anger among pharmacy owners has been intensified exponentially by the Budget – with its hike in national insurance employers’ contributions and the unfunded National Living Wage increase – which has tipped even more pharmacies to the brink,” he said.

“The ballot result overwhelmingly shows the sheer anger and frustration of pharmacy owners at a decade of cuts that is forcing dedicated health professionals to shut their doors for good.”

It's the danger of spreading yourself too thin

Jon Rees, 35, who runs Penclawdd and Pontardawe Pharmacy near Swansea in south Wales, warned of pharmacy owners spreading themselves too thin.

He told PA: “For us, patient safety is of paramount importance and it’s the funding to ensure we have staff of a high enough calibre and training to maintain patient safety while, as pharmacists, trying to offer additional clinical services.

“It’s the danger of spreading yourself too thin.”

Mr Rees estimates he has completed about 6,000 independent consultations for patients since 2021 under the Pharmacy Minor Illness service.

The scheme provides people with free treatment and advice for certain illnesses and conditions without the need for a GP appointment.

“That’s only possible from having the appropriate skills mix in the pharmacy,” Mr Rees added.

A Department of Health and Social Care spokesperson said: “Community pharmacy has a vital role to play as we move the focus of care from hospital to the community under the fundamental reforms in our 10-year health plan.

“Unfortunately, we inherited a system that has been neglected for too long and is no longer supporting the pharmacists we need to deliver for patients at a local level.

“We are committed to working with the sector and would encourage all pharmacists to work with us to achieve what we all want – a service fit for the future.”