The Australian General Practice Alliance (AGPA) has called out the federal government for backing a decision that could potentially facilitate a commercial monopoly on prescription exchanges under the National Digital Prescribing Service (NDPS).
The AGPA said that the recent decision by the Department of Health and Ageing, attempting to mandate a single prescription exchange provider for publicly funded prescriptions, runs counter to the interests of primary care sector and its patients, and is anti-competitive.
The alliance says that the move will eliminate the healthy competition that has existed between MediSecure and Fred IT, the two key companies that have provided prescription delivery services to the community since the system was launched in 2009.
“The elimination of public funding for MediSecure appears to grant a virtual monopoly to Fred IT,” said Dr Mukesh Haikerwal, the AGPA’s Deputy Chair.
“This decision endangers the continued sustainability of MediSecure, which is used successfully by many GP practices and has provided prescription delivery services to the Australian community for over 14 years, whilst favouring the only other provider in the market.
“Like any unnecessary technology implementation, this move will be disruptive for health providers and their patients and eliminates the financial advantages that stem from a competitive market.”
According to advice from Services Australia, all GPs must be registered by September 30 with the eRx Script Exchange provided by Fred IT, an entity that is majority-owned by Telstra and the Pharmacy Guild of Australia.
After this date, the MediSecure route for electronic scripts will technically still be available, but the costs associated with an SMS (about four cents) and the 2.25 cents per script paid by the department to the Practice Management System provider will need to be covered by alternative means.
This could involve either the prescribing GP, the medical practice itself, or a potential surcharge to the patient.
Dr Haikerwal criticised the department’s decision, describing it as short-sighted.
“By creating an effective monopoly for four years, with potential extensions, there’s a significant risk that only one tenderer will emerge for the role of prescription exchange provider when the National Digital Prescribing Service (NDPS) goes back to market,” he cautioned.
“The competition that existed at inception of these services drove benefits from its correct design, implementation and successful deployment through the COVID pandemic allowing safe, accurate and timely delivery of medicines to patients.
“The potential risks for the NDPS’s provision costs have been under threat for a while but are notably higher once the current contracts expire. What may appear as a cost-effective solution today could escalate into a costly endeavour in the future.”
AGPA has called on the department to reconsider their decision and maintain a competitive landscape that benefits all stakeholders involved.