CSO wholesalers value for money

THE National Pharmaceutical Services Association (NPSA) has used last week’s 2019 WA Pharmacy Forum to clarify the value versus the cost of Community Service Obligation (CSO) wholesalers providing Australiawide equitable access to medicines.

The NPSA presented data (pictured) demonstrating that for a mark-up of 6.5%, CSO wholesalers have successfully provided the full range of Pharmaceutical Benefits Scheme (PBS) medicines anywhere in the country and generally within 24 hours.

NPSA Chairman, Mark Hooper, said that the Forum presented an important opportunity to dispel some of the myths surrounding CSO wholesaling, while helping industry, government and consumer stakeholders better understand the value of the critical and complex function they perform.

“There is still a widely held view in the industry that CSO wholesaling is simply a matter of moving boxes and that doing so costs the Government too much money,” Hooper said.

“The reality is that the combined cost of wholesale margins and the CSO accounts for just 6.5% of the total PBS spend and our role in the supply chain goes far beyond a matter of just simply moving boxes.

“CSO wholesalers are responsible for upholding the Government’s commitment to patients of 24-hour delivery anywhere in Australia.

“We also ensure reliable access to low volume medicines, that are often vital to a patient’s health.”

CSO wholesalers, in fulfilling their obligation, buy, hold, range, pick, pack and deliver all 6,200 PBS products, a service which requires significant investment in technology and infrastructure, Hooper added.

“Since 2014, NPSA members have invested more than $500 million in the supply chain to ensure that Australia’s medicines sector remains among the best in the world for productivity, efficiency and service delivery.

“We are also the critical business partner for Australian community pharmacies providing approximately $1.7 billion in working capital, which is support without which the industry could not function.”

Hooper insisted that “all industry stakeholders” need to understand the “huge value for money” CSO wholesalers bring to Government.