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Reaction to OFT inquiry into
pharmacy contracts
(5 October 2001)
Pharmacy organisations have reacted to the news that the Office of Fair
Trading is to examine the control of entry regulations, announced on 3
October.
The Pharmaceutical Services Negotiating Committee said that it
recognised the power of the OFT, as a body independent of direction or
control by other Government departments, to investigate any matter it
chose to.
The PSNC says: "Control of entry regulations were introduced to secure
value for money for the NHS and the public who, as taxpayers, pay for
the services, and to secure ready access to pharmacies for patients and
customers. We will, of course, ensure that we assist the OFT in its understanding
of the issues, including the possible impact on patient services of creating
instability in the market.
"For contractors, faced with the uncertainties of radical change in NHS
structures, new roles, workload and manpower pressures and concerns about
future remuneration and service demands, this news is inevitably unsettling
and even threatening. The PSNC will work with other bodies representing
pharmacies to secure a satisfactory outcome, but the period of uncertainty
will inevitably continue for some time."
The National Pharmaceutical Association's chief executive, John
D'Arcy, says: "The timing of this study could not be worse for community
pharmacy owners. In the pharmacy plan, the Government is asking pharmacists
to make a huge commitment to, and investment in, a plethora of enhanced
services making best use of pharmacists' skills. The potential outcome
of this study could serve to demotivate and destabilise the pharmacy network
that is an essential component of realising the Government's agenda.
"The NPA considers that the control of entry regulations are working
well for consumers. They were introduced to ensure that patients were
guaranteed 'reasonable access' to pharmaceutical services. Since that
time they have been effective in creating a rational distribution of community
pharmacies thereby guaranteeing ready and easy access to pharmaceutical
services from where people live and work and from their general practitioner's
surgery.
"At the same time, the regulations allow for the development of a relatively
stable platform from which community pharmacists can develop and enhance
pharmaceutical services to the benefit of patients. This is particularly
important if pharmacy is to play its part in delivering the National Health
Service plan as envisaged in the pharmacy plan.
"Without control of entry, we will see the clustering of pharmacies around
GPs' surgeries and shopping centres attracting a high customer flow. This
would put at risk access to pharmacy services in deprived and less well
populated areas and will play into the hands of the larger, better resourced,
pharmacy players.
"Without control of entry, consumers will undoubtedly suffer from a reduction
in access to the range and choice inherent in the current community pharmacy
network."
The news of the OFT's investigation came as the Royal Pharmaceutical
Society's Council was holding its October meeting. The Society's President,
Marshall Davies, says: "The Society is concerned, in the public interest,
to see the provision of an appropriate network of pharmacies in the community
and the availability of the full range of medicines and pharmacy services
to the public."
However, the OFT's move has been welcomed by Superdrug. Mike Keen,
its pharmacy superintendent, says: "This is great news for Superdrug and
potentially even better news for customers. We have campaigned for six
years to end these restrictions, which limit consumer choice.
"Pharmacy provision in the United Kingdom is stuck in a time-warp because
of regulations introduced in 1987 which make it difficult to open a new
pharmacy in many areas. These barriers have meant pharmacy is not always
a patient-centred service and has failed to keep up with modern shopping
habits. All too often, consumers are not able to get service where and
when they want it, particularly in less affluent areas.
"Superdrug wants to change that and hopes that the OFT's conclusions will
enable it to do so." |
