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Fourth Community Pharmacy Agreement Options

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Fourth Community Pharmacy Agreement Options

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    1. June 2004 Fourth Community Pharmacy Agreement Options Wendy Phillips Acting Executive Director The Pharmacy Guild of Australia

    2. History of Guild Government Agreements 1989-1990 Dispute with Government too many pharmacies (approx 5,600 or 1 pharmacy per 3,000 people) small inefficient businesses cost of dispensing “too high” need to rationalise numbers and distribution

    4. First Agreement 1991-1995 Closure/amalgamation incentives to reduce pharmacy numbers Revised formula - higher fees/lower mark-up Controls on pharmacy numbers and location First rural allowance Additional charges for items priced below the maximum patient co-payment

    5. Second Agreement 1995 – 2000 Unchanged remuneration formula – dispensing fee split into admin and professional More flexible rules for new approvals and relocations Enhanced allowances for rural and remote pharmacies (During term of Agreement, RMMRs commenced)

    6. Third Agreement 2000 – 2005 Same remuneration formula; DD fee increased Huge boost for rural pharmacy and pharmacy services to Aboriginal communities PBS savings returned to pharmacists through Pharmacy Development Program including incentives to achieve Quality Care standards (QCPP) Major commitment to Information Technology Payment for Consumer Medicines Information

    7. Third Agreement 2000 - 2005 Substantial research program for new services Increased fees for Medication Management Program Home Medicines Reviews ($140) Residential Medication Management Reviews ($100)

    8. Pharmacy Adding Value

    9. Third Agreement – Summary of Benefits Expanding professional role of community pharmacist as a healthcare provider acknowledged and funded Remuneration for a range of professional services (research) and quality initiatives (QCPP, IT and rural support)

    10. Agreements in Summary Remuneration governed by 5 year agreements 1st and 2nd Agreements - remuneration only related to supply function 3rd Agreement – recognition of payment for professional services 4th Agreement - pressure to increase and expand professional practice payments advantages in emphasising professional role of pharmacists but presents challenges to pharmacy

    11. Background Challenges for Negotiating Fourth Agreement Problem Issues: National Competition Policy Review of State and Territory Pharmacy Acts Limit on numbers/Friendly Societies Supermarkets Woolworths plan Guild proposal to amend ACPA location rules

    12. Supermarket Claim to make Medicines Cheaper - Misleading

    13. Many Rounds to Go …

    14. Politics Guild had hoped to negotiate an early Agreement – prior to the Federal Election Linked in with this would have been location rule change to prevent pharmacies in supermarkets Initially positive response from Minister However decided current Agreement to run full term (June 2005)

    15. Objectives for the Fourth Agreement To: guarantee ongoing adequate remuneration structure for PBS dispensing obtain payment for increasing number of professional services

    16. Objectives for the Fourth Agreement Background requirements protect network from NCC and supermarkets ensure there is sufficient competent workforce to deliver new professional services within quality assured framework have in place systems and changed workflow practices using enhanced IT systems for recording/retrieving data

    17. Value of QCPP QCPP is designed to: improve management and business processes create an empowered staff that will accept new processes raise and maintain professional standards have in place a quality assurance process which facilitates new service deliveries

    18. Technology Relationships and Network Technology is the enabler for: better customer relationships the development of a cohesive network to store and share data in order to provide more efficient and professional services

    19. Government Concern at PBS Growth

    20. Government Position The Government wants to reduce PBS costs and will target pharmacy as a means of doing so There is perhaps some thinking that the Guild did too well for pharmacy in the last Agreement

    21. Negotiations for the Fourth Agreement Negotiations will not be easy and it will be essential to: have a skilled, well trained negotiating team know what can and what cannot be put on the table as part of the negotiations Discipline and team work will be the key to successful negotiations

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