Thousands of pharmacies could be forced to close amid drug pricing row with Government

THOUSANDS of pharmacies across England could be forced to close amid a drug pricing row with the Government.

Rural pharmacies in particular are under serious threat – potentially cutting off a vital healthcare lifeline for the most vulnerable.

The crisis surrounds the Department of Health and Social Care’s (DHSC) failure to efficiently reimburse pharmacies which have been hit with a massive drug price hike by wholesalers.

And this comes as the sector is already reeling from years of government funding cuts, the impact of inflation and supply chain issues.

Leading voices in the industry say community pharmacies in England – which number 11,522 – are now at “breaking point” and are being “squeezed on every front”.

The Pharmaceutical Services Negotiating Committee (PSNC) – the body that negotiates drug prices with the Government on behalf of pharmacy owners – told The Sun the threat of closures is real.

“We believe many pharmacies are at risk, due to spiralling costs and years of chronic underfunding which is now being exacerbated by price rises and other pressures,” a spokesperson said.

“Now more than ever, pharmacies are at breaking point.”

The crux of the medicine pricing issue is the Government’s Drug Tariff which outlines what will be paid to pharmacy contractors for NHS services, via reimbursement or remuneration.

NHS Prescription Services produces the Drug Tariff on a monthly basis on behalf of the DHSC.

But if a pharmacy cannot source a drug at or below the reimbursement price, they are left to foot the often hefty bill.

For medicines affected by price rises, there is a concession system under which pharmacies can be reimbursed higher prices if granted by the DHSC, but it’s bogged down with red tape, delays and disagreements over pricing, often leaving pharmacies out of pocket. 

And for some community pharmacies this could be fatal.

In December the sector recorded the highest number of price concessions ever, with 198 medicines experiencing pricing issues.

The PSNC spokesperson added: “This is deeply concerning as many pharmacies are having to pay for NHS medicines out of their own pockets.”

Dr Layla Hannbeck, CEO of the Association of Independent Multiple Pharmacies which represents 4,000 pharmacies in England, said: “We’re being squeezed on every front.

“It’s a very complicated system and the number of common medicines that have gone up in price significantly is high, it’s getting unreal.

“For example the drug anastrozole, a hormone treatment, used to be around £1.10, it now costs £60. 

“Prednisolone, which is a normal steroid, is another one that has gone up in price, yesterday it might have cost £1 and today it costs £40-£50.”

Dr Hannbeck also gave the example of another drug called aripiprazole, a common medication used to treat gastric reflux. 

She says the cost has soared so high that an average pharmacy is incurring at least an £8,000 loss per month just on that drug alone.

“Until the department (DHSC) puts up the price that is reimbursed, many pharmacies cannot afford to pay the wholesale bills.

“We will see over the coming year the number of pharmacies in England go down in numbers, it’s already starting to happen.

“What people don’t understand is that 90% of an independent pharmacy’s activity is NHS related.

“So if they are not getting reimbursed to pay for the drugs then they will go out of business, it’s as simple as that.”

Dr Hannbeck said that while wholesalers are passing on their increased costs by hiking the price of drugs, pharmacy owners cannot offload their costs on to people who use the service.

She added: “The government has said it’s not worried about a few closures, but we could see whole swathes of community pharmacies closing unless something changes.”