The government has been warned that community pharmacies will take collective action and reduce opening hours and services from April 1st unless there is an imminent clarity on a new funding contract.
The National Pharmacy Association (NPA) on Tuesday (17) announced that will advise its 6000 member pharmacies in England to take the unprecedented step in the face of what it has described as an April cliff-edge that will see a range of financial burdens placed on the sector.
When asked by Pharmacy Business if this was a tactic to force the government into announcing the pharmacy funding contract, NPA chair, Nick Kaye, said: “That's absolutely why we would do it.
“What we're trying to do is make sure that we get some clarity before the end of the financial year and hopefully that's the contract and done and in place so that people can start adjusting their world to it - hopefully for the better.”
Around 90 per cent of an average pharmacy's work is funded via the NHS, including dispensing medication and vaccinations. But although the end of the current financial year is just days away pharmacies are yet to receive any confirmation of funding for either the 2024/25 or 25/26 financial years that might allow them to avoid service reductions.
There have been rumours that the funding contract has been finalised and is with Community Pharmacy England (CPE) who will decide how the money is allocated.
Kaye confirmed that both the CPE and NHS England have been made aware of plans for collective action by community pharmacies but have not provided a response.
“The only thing that I struggle with, when it comes to the CPE, is the lack of sight of anything,” added Kaye.
“We often think the way in which CPE negotiates is they get a lump sum, they get a quantum that's probably fixed, and then they do a really good job of working out where that's going to be spent - whether that's spent on Pharmacy First or single activity fee.
“But if they know the quantum and the quantum doesn't change, then actually, for some people to have sight of that and to give it some more thinking, would be helpful.”
Kaye has warned that even if the government announces a new contractual framework before April 1st, collective action will still be a possibility if the NPA feels the funding is inadequate for its members.
Pharmacies have seen around a 40 per cent cut to this funding in real terms since 2017, forcing record numbers to close. Around 1,300 pharmacies have shut down since 2017 including 29 since January.
Additional unfunded costs due to hit pharmacies on April 1 include National Insurance, National Living Wage and Business rates, on top of a decade of real terms cuts which may jeopardise patient safety if a resolution is not found.
“It will be around the details of what the deal looks like and then the NPA board will decide what action it needs to take and if that means more collective action then I don't think we're scared of that," he said.
“I don't think I would answer it a yes, no. What I would say is, if that was the will of the board, which is what our membership ask for, then we're not frightened to do that. But hopefully we won’t have to.”
The collective action would involve fewer pharmacies opening in the evenings and at weekends, as well as limiting home deliveries and withdrawing from some locally commissioned schemes like addiction support.
The NPA have stressed that safety is the main priority for every pharmacy so it is for each pharmacy to determine what action they can safely take and give patients and local NHS boards notice of any changes to ensure continuity of care. Pharmacies need to give the NHS five weeks' notice of a change in hours.
This is the first time in the NPA's 104-year history that such a move has been taken.
"Pharmacies have shut in record numbers and those that are left are hanging on by their fingernails waiting for the delivery of a financial settlement that protects services on which millions of people rely,” said Kaye.
“If pharmacies do not get adequate funding, then patients risk losing access to their local pharmacy altogether, threatening their access to vital medicines and health services."
