Pharmacy minister acknowledges sector’s urgent need for sustainable funding at SIGMA Conference

Pharmacy leaders highlight growing challenges and call for a unified voice to ensure their concerns are heard and taken seriously 

Pharmacy minister Stephen Kinnock has pledged to enhance the role of community pharmacies, particularly in deprived areas, by making better use of the skills of pharmacy teams.

In a video message at the SIGMA UK Community Pharmacy Conference 2024 on Sunday, Kinnock also announced plans to expand the Pharmacy First initiative and introduce an independent prescribing service, making prescribing an integral part of the service delivered by community pharmacies.

He said: “Since taking on the role of minister of state for care in government, my message has been very clear: we must get our fantastic primary care sector back on its feet to be able to deliver for our patients.

“This government is committed to shifting care from hospital to community, from analogue to digital, and from sickness to prevention, and pharmacies will play a vital role in that.”

Kinnock acknowledged the pressures faced by the sector and expressed concerns that so many community pharmacies have exited the market over the past decade.

He also recognised the need for a sustainable funding solution that matches the government’s ambitions to reform and expand the services offered by community pharmacies, adding that they are looking at this as “a matter of urgency.”

The minister also stated that he looked forward to engaging further with the sector as the government sets out the 10-year plan to make the NHS fit for the future.

Around 250 people, including pharmacists and politicians, attended the conference on Sunday, October 6, at the Hilton London, Heathrow Terminal 5.

Giving his welcome speech, Hatul Shah, CEO of Sigma Pharmaceuticals plc, shared that as a pharmacy contractor, he could relate to the volatility, and cash flow implications that many in the sector are facing today.

He said: “For the first time in my career, I'm struggling as a contractor to balance the books. I feel I have the best tools at my disposal to ensure I can operate a lean ship, but the rising overheads and squeezing margins are now at breaking point for my stores.

Hatul recalled that, at the 2023 SIGMA conference, he had spoken about his fear about the potential reduction in the number of community pharmacies in England, not due to the strategic closures, but due to the margin reduction.

“At that time, we faced rising wages, rising interest rates and shortages, to name a few. A year on, we are now realizing the sheer impact of underfunding.”

A positive development, however, he said, is that the problem is now being widely publicized, and many are now aware of the issues in community pharmacy.

Through various petitions, calls to action, and media coverage, the sector is also now working towards a collaborative partnership with the new government.

Hatul said that West Streeting’s emphasis on the importance of primary care and understanding of the crucial role that community pharmacy can play is vital for the NHS going forward.

“This must trigger a transformation plan to reform healthcare provision in the country by using highly skilled and hungry pharmacists to deliver revolutionary healthcare as the front door of the NHS,” he noted.

This sentiment was echoed by the pharmacy minister Stephen Kinnock last week at the Pharmacy Business Awards 2024.

Hatul expressed hope that the government will recognise the industry, which is now on its knees due to a “broken funding system” and give what it deserves.

He advocated for community pharmacy to be recognised as a “core element of the NHS workstream” and to be adequately funded to generate greater savings for the NHS and improve patient care.

Matt Turmaine, MP for Watford, who opened the conference, promised that the government is determined to deliver in health and care.

He ensured that this new government is listening to the concerns of community pharmacy and is undertaking consultation properly.

“It is a government that is determined to fix the foundations of our economy, and it is a government that is determined to deliver for community pharmacy in this country.”

Paul Rees, CEO of National Pharmacy Association (NPA), also highlighted the severe challenges faced by community pharmacies, including a 40% real terms funding cut, 1500 closures over the last decade, and three-quarters of pharmacies being in deficit.

He thanked everyone who supported the "Save Our Pharmacies" campaign, emphasising the importance of a united sector for achieving results.

“We need to be working together. A sector divided doesn't get results, a sector United gets the message across and is taken seriously.”

Rees noted that the NPA has helped influence the Darzi report through both written and verbal submissions, making it clear that “the sector's been under-resourced for far too long and is under too much pressure.”

“If we want community pharmacy to be the heart of primary care, helping with prevention, helping shift care from secondary to primary care, which is what the new government wants. They have to reinvest in community pharmacy,” Rees said.

He also encouraged NPA members to participate in their ballot regarding work-to-rule plans, stressing that it would send “a strong message to the government and the Treasury.”

Shilpa Shah, CEO of North East London Community Pharmacy, acknowledged that while the current state of community pharmacy is “challenging and frustrating”, there are opportunities available, such as the Pharmacy First initiative and new services through the IP Pathfinder.

She said, “What we need to do is think about how we can support each other and work together to ensure that we are delivering services to the high standards that we can, without overwhelming our pharmacies or dealing with the stressful days.”

Shilpa highlighted the importance of engaging with organisations like Community Pharmacy England and local pharmaceutical committees.

She encourages pharmacy owners to discuss issues like cost of living, staff wages, rents, and rates with their MPs to raise awareness and seek support.

Shilpa called for unity and collaboration among community pharmacy organisations like Community Pharmacy England, NPA, CCA, and local LPCs because “by having one voice, that's the way we're going to get heard.”

Shilpa shared some of the positive developments in North East London, including the launch of free medication for eligible patients with Pharmacy First referrals in mid-July.

“This has been a game changer for us, and it's led to an increase in pharmacy first referrals,” she said.

There had been some negatives as well, with 14 pharmacies closed last year, Shilpa noted.

Raj Haria, Chief Commercial Officer of SIGMA, and Dipesh Vaja, Head of Sales at SIGMA, discussed the pharmacy sector's challenges and Sigma's role in addressing them.

Haria highlighted the significant increase in prescription items, particularly in regions like the Northeast and Yorkshire, and the pressure on independent pharmacies, which experienced a 40% growth over six years.

He noted that Sigma holds a 10% market share in distribution, focusing on independent and regional chains.

Haria also mentioned the challenges posed by the new ERP system and assured that improvements are being implemented, promising better service levels in the coming months.

Dipesh addressed the recent service disruptions and explained the benefits of the ERP system upgrade for customers, including improved accuracy in picking and delivery.

He reiterated Sigma’s commitment to enhancing customer service and promptly addressing any issues.

While closing the conference, Dr Bharat Shah CBE, co-founder of Sigma Pharmaceuticals, stressed the importance of multidisciplinary working in healthcare, which the company began proposing six months ago at its South Africa conference. The event featured doctors, dentists, nurses, discussing how pharmacists can work with other professions.

Dr Shah announced an upcoming session at the House of Commons later this month with healthcare decision-makers to discuss collaboration.

“We want to move forward in working together in the NHS because we all work for the patients. We should be working in silos,” he said.

He concluded by thanking everyone present and expressing hope for a successful future collaboration.