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    Your Monthly E-Magazine
    MARCH, 2002

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    NEIL JOHNSTON

    From a Consultant Perspective

    Pharmacists Freed From Shopkeeping

    The above title is one prepared by the New Zealand Ministry of Health, heading a press release (which follows verbatim below) dated 16th January, 2002. A letter of information was sent to pharmacists on the same date, and it appears that this may have been the first communication to pharmacists, regarding such drastic and dramatic changes.
    The choice of words such as "Government-mandated move" we have all heard before, and it seems that once again, government has failed to understand the essence of pharmacy.
    The letter (but not the press release) to New Zealand pharmacists is a well thought out (from the government perspective) document which attempts to thwart any potential arguments from community pharmacists.
    This means that this was no spur of the moment decision, and the preemptive strike through the media, illustrates the strategy that they will use to bludgeon pharmacists into submission.
    This article is the first in a series, alerting Australian pharmacists to an extremely serious situation, and the potential for duplicating New Zealand changes within an Australian context, is a very real issue.


    "New laws removing restrictions on pharmacy ownership are expected to give consumers better access to pharmacists and help pharmacists focus on helping patients use medicines safely and effectively, the Ministry of Health said today.

    Pharmacists were sometimes frustrated by the bureaucratic barriers that constrained their focus on advising consumers, said Dr Gillian Durham, Deputy Director-General of Sector Policy.

    "Freedom from the paperwork associated with shopkeeping should be a welcome relief to many pharmacists who at present have to juggle ownership and management demands with their key primary health role," DR Durham said.

    "The Government-mandated move to a population health focus is an opportunity for all of our primary health care professionals to contribute to the greater well-being of New Zealanders.

    "Pharmacists -- by their own definition the health professionals New Zealanders see most often -- clearly have an important part to play in this. This gives them the opportunity to do so more easily," DR Durham said.

    The changes replace a restrictive ownership regime, dating back nearly 70 years, with a licensing approach. This means non-pharmacists can own pharmacies but must satisfy certain legal requirements to get a license.

    A registered pharmacist will ensure quality and safety by giving advice and using medicines to improve consumers' health outcomes. Where the pharmacy is part of a chain, the owner will be required to employ a superintendent pharmacist overseeing all sites.

    "At the same time we believe this move will give New Zealanders better access to pharmacists," she said.

    "In other countries people seeing their doctor or doing their supermarket shopping often have access to a registered pharmacist dispensing medicines from the same site.

    "We know there are retailers in New Zealand interested in this sort of approach. We also know that one in 10 people given a prescription doesn't get it filled at present. If access is one of the reasons for this then we would expect this change to make a difference to those people."

    DR Durham said the changes would be phased in over a three-year period.

    A letter providing information about the changes was sent to pharmacists from the Ministry of Health last night"

    End of press release:

    As a pharmacist, I know that one of the reasons that I maintained a strong retail section within my pharmacy, was because it helped to offset sudden and drastic financial changes to the Pharmaceutical Benefits Scheme, engineered through the Health Insurance Commission.
    Without the buffer of the retail section, I do not believe I would have withstood some of those steep and adverse financial movements.
    My strategy was simple, when under pressure from government health sources, use a little more initiative in the retail sector. My customers/patients always appreciated any retail improvements and I retained my sanity. I have always been comfortable with a sensible range of retails merchandise, and even the "purists" within pharmacy ranks, still have to factor in a retail segment, though much diminished and medicinally/surgically focussed.
    I guess the end result of having a retail division was, in reality, it ended up subsidising the Pharmaceutical Benefits Scheme. Many of my overheads connected to the dispensary, were covered by retail profits.

    However, the real benefit of having a retail division was that it created a totally informal environment for customers and patients.
    Do governments realise that pharmacy has the only professional environment where there is no obligation to buy when entering that environment?
    My strategy here was very simple, and it applies to all pharmacists.
    Customers came for simple basic needs which could be handled by sales assistants, or by developing self service techniques. However, staff were trained to be inquisitive and search out any further needs of the customer/patient they were attending. The objective was to convert as many customers in my informal environment into patients.

    This is the essence of pharmacy, and the reason pharmacists interview more patients than any other health professional in a given day. The informality of the environment and the process, relaxes potential patients, and they often give up information that they would never share with their doctor.
    This fact has often irritated doctors and has made them feel competitive to pharmacists, rather than to harness this resource as an extra tool in their professional offerings.

    So when a government talks about "Pharmacists freed from shopkeeping" they are really saying that we want to reduce your ability to survive in business, and we want to cut down your flow of patients.
    Note that in the press release they talk about "Pharmacists were sometimes frustrated by the bureaucratic barriers that constrained their focus on advising consumers"'
    You can say that again!
    But notice the bureaucratic thinking.
    We will not eliminate our bureaucratic barriers, but we will legislate to give you more time to talk to patients, by creating large, non-pharmacist competitors, already located in well-serviced areas.
    If it is the "bureaucratic barriers" creating the problem, how is it going to improve advice to consumers if these barriers still exist after the legislative changes?
    This is not a free market exercise, but a blatant transfer of pharmacy assets to the big end of town!
    You will not have a business, so you certainly will be able to talk to the trickle of patients who remain loyal to you.
    That is, until you go broke or close down!

    One of the most hilarious sections of this press release is the statement "Freedom of paperwork associated with shopkeeping should be a welcome relief to many pharmacists who at present have to juggle ownership and management demands with their key primary health role."
    Which side of a pharmacy business generates the paperwork?
    The reams and reams of procedures and documentation, associated with dispensing or the selling of restricted substances, is already monumental.
    It grows exponentially, and is a growth industry in its own right!
    Surely the best way of freeing up a pharmacist is to eliminate as many layers of overriding bureaucracy as possible, and simplify all paperwork.

    Notice the tone of the press release.
    It automatically assumes that pharmacists will drop retailing activity simply because the "big boys" are entering the fray.
    What is going to cover the loss of income if pharmacists did drop their retailing, and why would they drop it at all?
    Why should this process generate more patient focussed time for pharmacists when they will have to redouble their retailing efforts to survive?
    Depending on circumstances, pharmacists would compete as they have always done, or they would close down, as is automatically assumed by the tone of the news release.
    The assumption is that pharmacists would prefer to work as employees under the banner of a Coles or Woolworths equivalent.
    Nothing is further from the truth!

    Perhaps the most galling part of this press release is the revealing statement "We know there are retailers in New Zealand interested in this sort of approach. We also know that one in ten people given a prescription doesn't get it filled at present. If access is one of the reasons for this then we would expect this change to make a difference to those people."
    What does this mean?
    Does it mean that other retailers will set up in areas of New Zealand not currently serviced by pharmacists?
    Most viable areas of New Zealand and Australia are already covered by pharmacists.
    Remote and isolated areas are well serviced by mail order and Internet pharmacies, particularly in New Zealand, where the first discount Internet pharmacies had their genesis.
    It does not give proper reasons for one in ten patients not getting a prescription filled.
    Cost would not be a barrier, because the majority of dispensing is already government subsidised.
    Lack of compliance would probably be the best bet, and the way to eliminate this problem is to properly pay pharmacists for the cognitive work they already do, and aspire to do.
    In the same breath as talking about access, the press release describes the scenario of access as a patient being able to see a doctor or pharmacist in the same site as a supermarket.
    Again, as already stated, such retail operators would only be active in already well-serviced (by pharmacy) areas, and this is not a valid argument for improved access.
    It seems the New Zealand government would prefer to interfere in pharmacy to a level where it should never be.
    Such interference can only have an adverse effect on the personal lives of all people connected to, and working within, pharmacies that are currently operating.
    This will be to the detriment of the total pharmacy profession and is not in the public interest.

    One other disturbing aspect of this press release is that for proposed chain sites, one pharmacist has to be legally appointed as a superintendent over all sites. Given the UK experience, described in my other article in this edition (Beware The Ides of March), this will be a recipe for an operation where the pharmacist will have no power to manage or control even the basic components of pharmacy professionalism. In this model, professional discretion and independence do not exist.
    He or she will be overridden and become slaves to the shareholder's need for maximum profit and a good share price.
    It is not in the public interest to develop this type of model, therefore the government claim to have a "mandate" is false.
    It will not improve location access, and in fact may decrease location access.
    It will not improve price (prescription prices are already fixed and subsidised).
    And sadly, there will be no investment in professional development, because this will be too intangible for those people pragmatically driving this type of pharmacy model.

    With the release of the very cynical and inaccurate press release above, New Zealand pharmacists have the fight of their life thrust upon them. Any assistance from their "cousins" her in Australia, would no doubt be welcome.
    The Pharmacy Guild of Australia has already taken an interest, and it is hoped that access to tried and proven, successful political strategies and approaches, will be given.

    In future editions, I will be looking at the details in the letter delivered to New Zealand pharmacists to suggest potential responses.

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