JULY,Edition # 29, 2001

We are pleased to note that Pharmacy Direct owner, Peter Brown, successfully defended an action brought against him by the NSW Pharmacy Board.
Action was initiated by Peter Brown in the Supreme Court, Sydney following complaints against him by the pharmaceutical services branch of the NSW State Health Department.
During the course of proceedings, the Board became aware that it was in breach of procedural fairness, and withdrew from its action.
As a result, no judgement was handed down, and costs were awarded to Peter Brown.

So ended an unnecessary saga of pharmaceutical history, which began as a "knee jerk" reaction by some segments of official pharmacy, in the misguided belief that the mail order/Internet operation developed by Peter Brown, in some way, constituted a threat to pharmacy, rather than a new and innovative medium to be explored as a means of enhancement.
We will not labour the point, but we have pointed out on a number of occasions, that official pharmacy, specifically the Pharmacy Guild of Australia, can leave a very heavy footprint on the everyday life of some community pharmacists, who may even be members of the same Guild.

The only "success" the Guild can claim from its' ill considered lobbying efforts is to have delayed the active introduction of e-commerce retailing into the general pharmacy population.
The fear of being singled out in a fashion similar to Peter Brown, being the main motivation for pharmacists not developing an e-commerce presence.
This has enabled major competitors such as Woolworths and Coles, to gain a quantum leap in the development of e-commerce as an adjunct to their "bricks and mortar" businesses, and it is the pharmacy leadership that has delivered a valuable advantage to these competitors on a platter. We intend to feature how advanced these retailers are in their e-commerce retailing activities in the next edition of this newsletter.
We should all now leave the above circumstances behind us and simply get on with the job of protecting our Internet territory.
However, there are some lessons to be learned from all of this, the first being that the Pharmacy Guild needs to develop some negotiating skills so that they can work with their members, and partner them to a satisfactory working solution, rather than "ruling by decree".
It is surprising what you can learn from creative and enterprising pharmacists, who are prepared to go out and pioneer some new development at their own cost.
These pharmacists are often very generous, because they take pride in their achievements, and quite commonly share their trade secrets with others.
The second lesson is that official pharmacy should set up a suggested Code of Internet conduct plus active guidelines for their Internet members, that are sensible and as restriction-free as possible.
This newsletter mentioned this over twelve months ago.
I am sure most pharmacists would post the code of Internet conduct on their site, and genuinely observe any sensible guidelines, thus avoiding future friction between competing pharmacists.
The Pharmaceutical Society of New Zealand has already commenced work in this area, whereby a linked logo graphic is posted to an officially approved site.
A click on the logo takes you to the Society website where details are freely available, as to the standard reached by the approved Internet Pharmacy.
New Zealand Internet pharmacies, to be accredited, must comply with the ethical and legislative requirements, and the quality standards of a registered pharmacy.
In addition, the website must comply with patient rights to privacy and confidentiality, also compliance with codes and legislative requirements for the advertising of medicines.
Information must be factual and understandable about all medicines advertised, and the site must also make provision for the opportunity for a meaningful consultation between patient and pharmacist.

In Australia, assistance ought be freely available from both the Guild and the Society in providing back-up support and encouragement for e-commerce developments, separate to the above.
For example, why not develop a ratings system, which evaluates a site for its design, ease of use, and its information content.
A pharmacy ratings system is a simple, and cheap to provide, and could be used to assist in developing standards.
There has been some mention of using an overseas ratings agency through an association of various pharmacy boards, but why not a homegrown one first? You can still add others if necessary.
Helping to develop privacy guidelines for the Internet in a format that could be confidently posted to a website, would also be of great assistance.
The keywords for the above are guide, assist and support.
Let pharmacists follow their own individual pathway into the world of the Internet.
Official pharmacy can draw in their successful ideas and share them with all others.
Do not try and dominate and be the actual e-commerce site. This does not allow individuality and is doomed to failure (or only props up the mediocrity too lazy to do something themselves).
What else can be done?
Well, what about a "Guildbank" of electronic images of products and royalty free artwork that can be posted on a Guild website, and be freely copied.
It is difficult to get good images in any quantity, and I am sure that the Pharmacy Guild can efficiently organise manufacturers to contribute to this image "bank".
This type of organisational activity is what the Guild really excels at.
Software for downloads and web development tools could also be provided, again free or at a nominal charge.
Product descriptions and abbreviated product information suitable for tagging images or text links in a shopping trolley would also be a big assist.
And the list goes on.
Guild members may even see benefit in joining their Internet business as a separate Guild member for an additional fee, provided they got value for money. Likewise, the Pharmaceutical Society can also make a big contribution.
I have often lamented that content for pharmacy websites in Australia is dominated by American providers.
This should not be so, given that we already have a range of Self-Care cards produced by the Society in hard copy format, which could be easily converted to an electronic format.
The sponsors of these cards, I am sure would be very pleased to see their logos appearing on multiple pharmacy websites, and this should be a relatively cheap exercise. It may also provide the incentive to expand the range of material available.
Articles in Society publications on complementary medicines could also be copied in.
We are all aware that the Internet does not address all the concerns in respect of the sale of medicines, because face-to-face contact is not available.
This is a perceived disadvantage, but the problem should be worked at, because there are too many positives available within Internet technology.
The Pharmaceutical Society of New Zealand appears to have come to grips with this problem, as noted above.
Good information can be delivered in hard copy, with each product ordered by Internet or mail order (by consumers), and telephone numbers and e-mail addresses should be provides by patients/customers before supply can be made. This gives a personal point of contact if questions arise.
An 1800 telephone number provided by the pharmacy, would allow free flowing contact should the patient/customer wish to initiate a conversation.
If the operation is reasonably local and pharmacy assistants are used in the delivery process, this would overcome most major communication difficulties.

Woolworths employ a firm of contract carriers to deliver their Internet offerings. Before the contract was given, the carrier had to agree to train their delivery people in retail etiquette, and be familiar with Woolworths prices and procedures, so that they could answer questions.
Pharmacists could also develop this model.
The overwhelming majority of e-commerce sites that will be developed by pharmacists will be simple extensions of their "bricks and mortar" site.
They will not be slavish copies of Pharmacy Direct, because this type of site is expensive to set up and maintain.
However, Pharmacy Direct competition has been steadily increasing, and we are pleased to report that Brett Clark, of ePharmacy fame has been given a high rating by online shoppers, in a ZDNet poll, published by the Australian Financial Review. Brett finished fourth, ahead of such majors as dStore, Tandy, Myer Direct, Qantas, Shopfast, David Jones and Angus and Robertson. A great effort by one of our own, and it shows what can be achieved against the "big end of town" just by getting out and trying.
See link: http://afr.com/it/2001/06/14/FFXWG5PRWNC.html for details.

Pharmacists will simply follow whatever they do currently i.e. promote that niche market that they specialise in, be it complementary therapy, fashion and beauty, photo graphics etc.
Discounting prices is not necessarily a successful strategy, as many would know from their "bricks and mortar" experience.
While there is some scope for modest price reductions on an e-commerce site (because of certain cost savings), the scope is not as wide as many think, as there are additional overheads to running and maintaining an e-commerce site (compared to a "bricks and mortar" site).
An Internet site would immediately extend market catchment, because it would be able to reach into a region, rather than just the town/suburb it is based in. Competition would move up a notch, and again, the "early bird will catch the worm".
One last point.
If the site is to be successful, it must have the provision to offer dispensing services, and eventually, consultant pharmacy services.
As we move to reduce legal impediments through electronic signatures and smart card medical records for patients etc, it will be those pharmacists geared to take advantage of opportunity that will win out.
For example, British hospitals are already contracting with community pharmacies to dispense discharge prescriptions under their National Health Scheme.
Only one pharmacy gets the contract in a given area, so whoever is quickest on their feet gains the reward.
This type of approach would find favour here in Australia, because of pharmacist shortages within the Australian public hospital system.
The current discharge method of giving patients a small quantity equating to a few days of medication, is not cost efficient, and could easily be replaced with larger, and more economical pack sizes.
An Internet community pharmacy, located within the geographical region of a hospital, could easily receive prescriptions via the Internet, and virtually follow the patient home with a medication delivery. All that is required is a minor change to the Medicare agreement and a fully functional e-commerce pharmacy, coupled with electronic prescription writing within hospitals (this is coming).

Maybe the Pharmacy Guild can begin lobbying for Medicare agreement changes? None of these suggestions are "pie in the sky".
They are either being discussed somewhere in the world, or here in Australia, and will be at your own front door before you know it.
As noted at the commencement of this article, let's get on with the job.
Ends
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