Prescription change paying off
What started as a trial of free prescriptions has taken on a new meaning for a Nelson pharmacy.
In November, Hardy St Pharmacy began cutting $5 off the standard subsidised prescription charge per item, meaning prescriptions for fully subsidised medicines would be free.
Pharmacy owner John Handforth said that when it made the decision, it was a reaction to wider trends within the industry.
During the past two years there had been a number of pharmacies, mainly in Auckland, that had moved towards a subsidised subscription model, he said.
‘‘When you see something new in your marketplace, you assess it – is it a risk, is it an opportunity?
‘‘That was initially what our thoughts were, to try and pre-prepare if that trend became a reality in Nelson, because that did represent a reasonable threat to us.’’
However, after nine months, Handforth said the pharmacy was continuing with the policy for a different reason.
‘‘When we saw the feedback from the community that this is maybe a bit bigger than just trying to minimise risk, this has got some real social merit – that’s what’s kept it going.’’
He said there had been a lot of positive feedback from customers, including those who had previously avoided coming to pharmacies to pick up a prescription.
‘‘For some people it was $5, for some it was $50. For people on a pension or a benefit, they struggle, and that’s something they need to budget for.
‘‘From my side of the equation, you don’t necessarily know that. Often times, if people can’t afford a prescription, they just won’t bring it in, so you’re none the wiser. So to actually see that as a study, that was quite enlightening.’’
The patient prescription charge is set by the Government and is intended to be the contribution a patient pays towards the cost of their medicines.
It is collected by community pharmacies, and the Government takes $5 from the pharmacy regardless of whether the charge is collected from the patient.
Handforth said the initial trial had been open-ended, depending on whether it proved to be economically feasible.
He said the financial implications of the change had caused ‘‘some sleepless nights’’.
‘‘It’s been a little bit scary at times when you look at the numbers you’re giving away, but I think for us, it seems to be working out.’’
He said that after crunching the numbers, there was a way to run the business without including the copayment amounts.
‘‘There was quite a bit of analysis on our part – in some ways, I think we were pretty lucky, I don’t think it would necessarily work for every pharmacy. We were in a bit of a sweet spot for putting all those things in place.’’
Pharmacy Guild New Zealand chief executive Andrew Gaudin said the trend towards free prescriptions was a recent development, largely in response to overseas-owned pharmacy chains waiving the $5 charge.
Gaudin said the guild favoured the charge being removed, as it created access barriers to medicines for the most vulnerable New Zealanders, with an estimated 257,000 adults unable to afford it.
‘‘This has got some real social merit – that’s what’s kept it going.’’ John Handforth