National Pharmacy Association chair Olivier Picard has said that if earning from NHS services remains loss-making for pharmacies and private services are profitable, then pharmacy owners need to think differently.
During the recent Pharmacy Business Conference, Picard, who also runs Newdays Pharmacy Group with four branches, provided us with a snapshot of the income streams from the NHS and private services in one of his pharmacies to show how independent pharmacies struggle to keep their doors open.
While delivering a presentation "The business and professional case for private services", Picard said that he and his team spend 90 percent of their time for NHS services, while the remaining is spent in providing private services.
Picard started off by recalling his early days as an immigrant from France, without any means to set up a pharmacy.
"I literally went to banks and said I'd like to buy a pharmacy. They laughed at me. So, I applied for a new contract. I eventually got my foot through the door. Over the years, we have grown," he said.
Picard claims his proudest moment came when he was asked to set up a COVID vaccination centre.
He then laid bare the income sources for the NHS services in one of his pharmacies.
Picard noted that in recent times there has been some increase in the dispensing fee and service fees.
The pharmacy that Picard picked up for his presentation dispenses around 7,000 items a month, which is average by industry standards.
Citing the 2025 numbers, he pointed out that taking into consideration the cost of drugs, reimbursement price, profit, and NHS clawback numbers, the pharmacy made a purchase profit of £69,760.
Through a series of slides, he demonstrated the income he earned from NHS services. They included various services, including Pharmacy First and flu vaccinations.
Then he presented slides listing the costs to deliver these NHS services. This included wages, national insurance costs, pension costs, and loan repayment (he factored 90 percent of it on NHS services).
It cost him £222,000 just in staff costs to deliver NHS services. After deducting all the expenses the total annual profit came to a mere £1,500.
"In fact, I'm proud to have made a profit," he remarked wryly.
"Then I added my other costs — rent, rates, light, heat, and computers. And you can now see in red that I am actually making a loss. I have spent 90 percent of my time, and I'm still making a loss," he said.
Once he realised that NHS services were not profitable, he got into private services to stay in business.
Picard is also keen on increasing prescribing services for his pharmacies and termed it "the next step in the journey".
Then he rolled out slides showing figures related to the private services that account for 10 percent of the time spent.
The private services include ear microsuction, travel clinic, private COVID vaccination, and weight loss services.
He claimed that for ear microsuction his pharmacy charges £50 to £70 per patient and the pharmacy earns around £1,000–£1,400 a month from an average of 20 patients.
For the travel clinic, they charge around £125 per consultation and get 20 consultations a month. They earn about £2,500 monthly, or £30,000 yearly.
"Private COVID vaccination is another repeat business. Patients come back regularly. We did 229 in a year, generating £6,000–£9,000 profit.
"Weight loss services are also significant. Patients return monthly, and word of mouth drives growth. This alone can keep a pharmacy afloat.
"Chickenpox vaccination is seasonal - quiet for months, then suddenly high demand. Two doses at £80 each provide £160 revenue per patient, about £80 profit. We see 60-70 patients yearly."
He noted that the profit from private service is about £71,348 a year.
"Now compare that with 90 percent of my time spent on NHS services, which makes little or no profit - and you see the dilemma."
He said the government needs to take a hard look at this. "I hope all pharmacies don’t shift the same way."
Picard said the services he is keen to include in his pharmacies include dermatology, mole checks, and menopause screening.
He said he enjoys being a pharmacist and is passionate about empowering his team.
