By Jeremy Meader
The Chancellor has been defending her Budget for the last couple of weeks since she offered up her long-awaited plans for the finances of the UK.
However, one very noticeable exception from her speech was the healthcare sector and in particular pharmacy.
While doctors in England threaten more strike action ahead of Christmas, there is still no apparent need to brief the pharmacy sector on what we can expect in the Budget.
Recently, I touched on the fact that the Government must address the £1.5 billion funding black hole that is haunting pharmacy.
In my most recent column, I was adamant that eyes should be cast towards Whitehall and the Department of Health as opposed to those operating the businesses.
This is something I firmly still believe following the Budget as Rachel Reeves has made no admissions that can help us begin to plan for the future.
While the Community Pharmacy Contractual Framework (CPCF) has risen as previously mentioned, there are real world issues that we as a sector must address.
The rise in national minimum wage, ahead of inflation and increased national insurance contributions will raise operating costs for pharmacies by millions at a time when many operators simply cannot afford this.
The 4.1 percent increase takes effect from April, and the Government should announce they have ringfenced funding for this to ensure it does not leave pharmacies taking a direct hit.
Remember, nearly half (47 percent) of all pharmacies were not profitable in their last trading year according to earnings before interest, taxes and amortisation.
It is becoming increasingly clear that any benefits which may have come as part of the new CPCF deal will now be more than offset by the Chancellor’s decisions last month.
Some areas could prove promising, like the £300 million investment to improve links between pharmacies and other NHS services, including giving pharmacies more of an opportunity to provide clinical services as part of neighbourhood health centres.
However, the large caveat will be that pharmacies are not invited to offer their input from the get-go, which they must be, in order to ensure that the pharmacy is part of the process, not a disjointed addition towards the end.
The Chancellor announced last month that she was aiming to bring an end to the so-called postcode lottery of healthcare by rubber stamping new neighbourhood healthcare centres in order to cut NHS waiting times.
The deal will be provided through a new on-balance sheet public private partnership with £300 million also announced to aid NHS technology in 2027/28.
The 250 new centres [1] will provide wonderful healthcare opportunities in disadvantaged areas combining GPs, nurses, dentists and pharmacies under one roof - a one-stop shop for healthcare.
The neighbourhood health service aims to move more outpatient care away from hospitals and instead allow patients to be treated just minutes from their home as opposed to travelling to hospitals.
It is hoped that at least 100 of the centres will be open by 2030 as part of the NHS Neighbourhood Rebuild programme.
If pharmacy can have its voice heard from the beginning in discussions over these new healthcare centres, then there are a variety of ways that the sector can improve the life of patients.
It will allow for common, clinical conditions to be treated easily as well as vaccinations and support for those with chronic diseases.
While these promises sound good on paper, actions speak far louder than any words and it is time those in the corridors of power made good on their promises.
We need to see the delivery of these promises with pharmacies being involved from the start right through until the cutting of the ribbon on the opening day.
Transparency from the Government over how they plan to spend in the healthcare and in particular pharmacy sector will bring back those who feel their pleas are ignored.
Everyone in the healthcare sector hopes to make a massive difference to patients’ lives throughout their career but this is a true opportunity where pharmacy can have our voices heard and ensure we do make that vital difference to so many patients across the UK.
Jeremy Meader is the Chief Wholesale Officer of Bestway Healthcare, overseeing brands such as Lexon, Wardles, and Bestway Medhub. Jeremy has over 25 years of experience in the UK pharmaceutical sector, and has worked in executive roles across the industry.
