Pharmacists are turning to digital technology in response to an anticipated decrease in profit with the advent of 60-day dispensing, according to the Commonwealth Bank’s 2023 CommBank Pharmacy Insights report.
The report, produced in association with the University of Technology Sydney and IQVIA, showed that confidence among community pharmacies reached its highest ever point in late November 2022, but declined sharply by May 2023, following the announcement of 60-day dispensing.
In December 2022, 41.9% of the 360 pharmacists surveyed indicated that they were optimistic, 54.4% were neutral, and just 3.6% were pessimistic about the future viability of the industry, but by May this year, only 9.7% remained optimistic, 60.7% were neutral, and 29.6% were pessimistic.
CommBank Health CEO, Mr Albert Naffah, said the impact of 60-day dispensing on financial performance required a deeper analysis, prompting the bank to undertake the May survey.
When pharmacists were asked about the impact of 60-day dispensing on profitability, 90% agreed it would decrease and of these, the average anticipated change in the value was a decrease of 33.1%.
“However, according to pharmacists’ views at the end of 2022, opportunities such as expanding professional services, growing sales, and operating at a fuller scope of practice, supported greater optimism,” Mr Naffah said.
“Those same strategies are now part of the response to 60-day dispensing and its anticipated impact. Given the policy is coming into effect in September 2023, it’s likely some pharmacists will implement these strategies in shorter timeframes and build on them during the multi-year rollout.
“Additionally, many are considering whether keeping their workforce and opening hours intact is financially viable, while others are still grappling with shortages.”
The results showed that 79.2% would begin charging for previously free services to offset impact of 60-day dispensing, with eight in 10 pharmacists considering a new charge for deliveries; and around one in three pharmacies intended to add to their digital channels, with 35% considering offering click and collect and 32% seeking to add options to purchase online.
“Interestingly, the top growth opportunity for pharmacists in November 2022 was expanding professional services,” the report noted.
“That remains a key strategy for more than half of pharmacies, with bridging the expected profit shortfall as a driver rather than the previous pursuit of growth.”
Mr Naffah highlighted that hourly rates for pharmacists had continued to grow, “which was the top tactic alongside flexible working used by owners to attract and retain talent.”
“In 2022, almost seven in 10 pharmacists reported an increase in remuneration, up from 43% who said the same in 2021,” he said.
“Now, 80% of pharmacists have an hourly rate of $40 per hour or more, up from 52% in 2021, and one in five earned above $50 per hour, more than doubling year-on-year.”
However, the Pharmaceutical Society of Australia’s Pharmacists in 2023: Roles and Remuneration report found that community pharmacists’ hourly pay rates were still below those of other professionals in comparable roles.
As such, the report found that talent shortages were a persistent and industry-wide challenge with almost three in four pharmacy owners (74%) stated they had difficulties recruiting staff, and filling pharmacist positions took upwards of three months for one in two. Among regional and rural pharmacies, 80% said more than three months was the norm.
However, 62% of pharmacies were considering a decrease in pharmacy assistants, with 43.5% saying the same about employed pharmacists, and 48.1% were looking at reducing opening hours.
Similarly, the research showed that almost one in three pharmacy managers or pharmacists-in-charge (31%) and employed pharmacists (36%) were considering leaving the industry altogether.
“However, while concerns about the uncertain future are understandable, at CommBank Health we are confident the industry is well placed to sufficiently respond and adapt to the changing landscape,” Mr Naffah said.
From 1 July, all community pharmacies were paid 7% more for dispensing PBS medicines, giving the average metropolitan pharmacy more than $41,000 extra a year for operating expenses such as dispensing, handling, administration, and infrastructure.
The 7% indexation boost to pharmacy payments was nearly double the 3.6% indexation of Medicare rebates that also took effect on 1 July and for a standard script for a ready prepared item, such as atorvastatin, pharmacies now receive an extra $0.85, taking the fee to $12.99 per script.
An average pharmacy in the following locations will receive:
- $41,229.98 – for a major metropolitan area
- $43,118.72 – for a large regional centre
- $26,857.00 to $51,746.92 – in rural towns
- $18,742.23 – in remote communities
- $12,448.82 – in a very remote community