Pharmacy Guild of Australia considering suing federal government over half-price scripts

The Pharmacy Guild of Australia has revealed its next move over half-price scripts as it steps up its campaign against the deal.

The Pharmacy Guild has engaged a King’s Counsel to determine if it can sue the federal Government over the introduction of half-price scripts in a move that could cost taxpayers millions.

On Friday six million Australians became eligible for half price medicines when 90 drugs for cholesterol, blood pressure and other conditions became available on 60 days scripts for the same price as 30 day scripts.

The Pharmacy Guild has been waging a multimillion-dollar campaign against changes claiming it will slash chemist’s income.

Health Minister Mark Butler has pledged to return all the $1.2 billion the government saves to chemists through a range of pharmacy programs.

Pharmacy Guild of Australia president Trent Twomey revealed at a conference on September 1 that the Guild was seeking legal advice over half-price scripts. Picture: Allen Mechen

Pharmacy Guild president Trent Twomey appeared to back down on the Guild’s campaign against the changes on Friday after agreeing to negotiate a new five-year pharmacy funding deal with the Albanese government.

“To facilitate the commencement of good faith negotiations, the Pharmacy Guild has offered to suspend its public information campaign and that has been accepted by the Health Minister and the Prime Minister,” Mr Twomey said in a media release on Friday.

However, on the very same day at the NSW Pharmacy Connect conference held at the Hyatt Regency in Sydney, Mr Twomey told chemists at an afternoon session:

“We have engaged a King’s Counsel to interrogate whether there is any legal recourse that the Guild can take on your behalf with respect to there being a broken contract. We will wait to see what that legal advice says and if we need to, we will take action then”.

The lawyer would also advise chemists on how to ensure the government did not make similar changes disadvantaging them in their new five year agreement due to start in March 2024, he said.

Pharmacists from across Australia protesting against the 60-day scripts outside Parliament House in Canberra on Monday. Picture: NCA NewsWire / Martin Ollman

Australian Journal Pharmacy reported that he made similar comments in a morning session of the same conference, which a Guild spokesman denied.

“The Guild remains committed to in good faith negotiations that will see the eighth Community Pharmacy Agreement commencing on the 1st of March 2024 to deliver a positive outcome for patients and pharmacies and it’s long held best practice for the government and the Guild to obtain advice regarding the structure of agreements, in fact considering their size and scale it would be irresponsible not to,” the spokesman told News Corp.

News Corp has obtained a tape recording of what Mr Twomey told the conference on Friday afternoon which shows he did announce the Guild was examining taking legal action against the government over 60 day scripts.

About 150 pharmacists joined Monday’s half-price script protest. Picture: NCA NewsWire / Martin Ollman

Meanwhile, around 150 pharmacists in white-coats staged a protest against the half-price script policy outside Parliament House in Canberra on Monday.

The protesters, part of a group called Community and Pharmacy Support Group (CAPS) caused disruption during Question Time.

“It is not an exaggeration or a ‘scare campaign’ to say that this ill-conceived policy seriously impacts pharmacists across the country, and many will no longer be able to operate,” CAPS spokesperson Christine Kelly told the Pharmacy Daily.

Health Minister Mark Butler was asked during Question Time why he had not met with the protesters.

He said he had consulted with pharmacists, doctors and consumers over the policy many times in recent months.

“I’ve been asked question after question by those opposite about this measure. Not one of them has ever alluded to the interests of patients. Not one of them has ever alluded to the interests of patients who benefit from this,” he said.