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Cairns pharmacist slams federal government PBS shake-up despite Qld senator’s reassurance

Far North pharmacy owners have slammed the federal government’s move to halve medication costs, claiming the “flawed” policy contains dire ramifications for local businesses.

Health Minister announces shake-up to PBS

Cairns pharmacists have slammed the federal government’s move to halve medication costs, claiming the “flawed” policy contains dire ramifications for local businesses.

In a shake-up of the Pharmaceutical Benefits Scheme (PBS), the Albanese Government has halved the cost of 320 medicines for Australians suffering chronic illnesses, who will be able to access up to 60 days’ worth of medication from September.

Australian pharmacies are expected to wear at least $1.6 billion in consequential profit cuts over four years.

Federal Health Minister Mark Butler said the government had its mind on consumers’ wallets and refuted pharmacists’ warnings of supply shortages, but Nick Loukas, founder of the Far North’s Alive Pharmacy chain, said the policy threatened the viability of small-town pharmacies.

Alive Pharmacy founder Nick Loukas has slammed the federal government's PBS shake-up. Picture: File photo
Alive Pharmacy founder Nick Loukas has slammed the federal government's PBS shake-up. Picture: File photo

“At the end of the day, this is a cost-shifting exercise as it moves the financial burden from government to small business,” Mr Loukas said.

“Pharmacies are often an integral part of the community, providing essential healthcare services and support. The government has a wonderful asset in community pharmacy by being able to mobilise healthcare delivery quickly … why threaten that?

“The loss of local pharmacies would have a devastating impact on these communities.”

Leichhardt MP Warren Entsch said the government’s move could hurt the profit margin of Far North pharmacies. Picture: Asanka Ratnayake/Getty Images
Leichhardt MP Warren Entsch said the government’s move could hurt the profit margin of Far North pharmacies. Picture: Asanka Ratnayake/Getty Images

Mr Loukas said the potential loss of revenue would impact services often provided at no cost.

“Pharmacies have traditionally provided many free services to their patients, such as medication packing and home delivery. With the proposed 60-day dispensing, many pharmacies will be forced to charge for these services or eliminate them altogether,” he said.

“This change would disproportionately affect elderly and disabled patients.”

Smithfield pharmacist Phil Anderson described the change as “shortsighted”.

“Some of my team have been working with me for 15 or 20 years. They’re like family to me and I don’t know how we’re going to implement these changes and keep our existing staff levels,” Mr Anderson said.

Senator for Queensland Nita Green said every dollar the government saved through the budgetary measure would be reinvested back into community pharmacies. Picture: Brendan Radke
Senator for Queensland Nita Green said every dollar the government saved through the budgetary measure would be reinvested back into community pharmacies. Picture: Brendan Radke

Pharmacists receive dispensing fees from the federal government for medication sales.

Labor senator Nita Green said “every single dollar” the government saved from dispensing fees, estimated to be $1.2 billion over four years, would be reinvested in community pharmacies.

“Over the last few days I have been contacted by local pharmacies raising concerns about this proposal. I want to assure them I will be responding as soon as possible,” Ms Green said.

“Cheaper medicines will deliver real savings for millions of Australians and ensure fewer people are forced to go without medicine because of the cost.”

Leichhardt MP Warren Entsch said the move would hamper the profitability of local pharmacies.

“The government is now compelling them by law to hand over two-months’ worth of prescriptions and take a cut in profits,” Mr Entsch said.

“If they can’t remain profitable, they’ll shut down.

“If the government is looking to make savings, it shouldn’t be at the cost of small community pharmacies.

“I’ll be putting in a letter to the Health Minister expressing my sincere concern and asking him to reconsider.”

isaac.mccarthy@news.com.au

Originally published as Cairns pharmacist slams federal government PBS shake-up despite Qld senator’s reassurance

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Original URL: https://www.ntnews.com.au/news/cairns/cairns-pharmacist-slams-federal-government-pbs-shakeup-despite-qld-senators-reassurance/news-story/6a25d21a352a5ddc46199d58f3d6be4f