Pharmacists are dispensing 33 per cent more National Health Service prescriptions than 10 years ago for the same average gross profit per pharmacy in real terms, according to Professor Ian Jones (professor of pharmacy practice, University of Portsmouth).
Professor Jones told the AAH/Vantage convention that the number of prescriptions dispensed in England and Wales had risen from 446.6m in 1990 to 594.1m in 1998. But pharmacies' gross profit had not increased in real terms because the gross profit per prescription, adjusted for inflation, had steadily fallen from 112p in 1990 to 89p in 1998. Pharmacists were having to work 33 per cent harder for the same amount.
In an exploration of past, present and future trends in pharmacy's NHS remuneration, Professor Jones said that some remarkable changes had taken place since the start of the NHS in 1948. At that time, in the typical independent pharmacy, NHS prescriptions had accounted for around 10 per cent of turnover. Today, the figure was more than 70 per cent.
Furthermore, the fee per item, in real terms, had remained fairly stable throughout that period. But, because drug prices had increased considerably, the margins for dispensing had fallen dramatically from 48 per cent in 1948 to 14 per cent now. And they were still falling. The only way to make up for these falling margins was to gain more profit from the reimbursement side by seeking better discounts on drug purchases. But this provided nothing more than an interest-free loan, since the savings would eventually be recouped by the Government.
Professor Jones said that the average prescription item was now worth £10. Since a typical FP10 prescription form carried two items, an FP10 was a valuable invoice, equivalent to a £20 note. If pharmacists thought about FP10s like that, they would look after them better than they did.