Discounters eroding profession

PHARMACISTS in Western Australia fear that the ongoing corporatisation of the profession, alongside heavy discounting, will have a negative long-term impact.

The recently released report from the Western Australian Review of pharmacy ownership (PD 12 Jul) found pharmacists in the state were concerned about emerging ownership models, the entry of discount pharmacies, marketing on the basis of price or professional services, and the use of service or management groups.

“The industry expressed a concern that these trends exposed the sector to a potential for vertical and horizontal integration, reduced ownership transparency, and increasing external influences,” the report found.

The pharmacy sector in WA had seen an increase in the number of pharmacies affiliated with a “discount” pharmacy business model, the report noted.

At the end of 2017 there were 49 registered pharmacies in WA identifying with this type of model: 19 Chemist Warehouses, 18 Discount Drug Stores, and 12 SuperChem Discount Pharmacies.

“Together these pharmacies represent almost 8% of the pharmacies in Western Australia,” the report found.

“There was clear belief amongst many stakeholders that the emergence of ‘big box’ discounters in community pharmacy in Western Australia was not necessarily in the long-term best interests of the public,” the review added.

Respondents believed discount retailers would only focus on the most profitable products or services, which would lead to a reduction in choice and access for consumers.

In particular many suggested that “vital, but complementary or marginally profitable ancillary services” were unattractive in a lowest cost model - such as home medicines delivery, dose administration aid packaging, or services to residential aged care facilities.

However there was also an acknowledgement by some that the discounters had “made some drugs available at more affordable prices to the Australian community”.