Pharmacist app Locumate signs deal with Amcal owner Sigma

A tech firm that streamlines how chemists find pharmacists for locum shifts has signed up Australia’s biggest player, as it expands to the US and into other fields.

Amcal owner Sigma Healthcare, helmed by Vikesh Ramsunder, has signed up to Melbourne start-up Locumate, which says it has saved pharmacists millions of dollars in locum agency fees. Picture: Luis Ascui

A Melbourne start-up that says it has saved pharmacists about $2.5m in locum agency fees has signed up Australia’s biggest chemist group, ASX-listed Sigma, as it expands to the US and into other health professions.

Kavita Nadan co-founded Locumate.ai at her kitchen table four years ago after struggling to find a locum at her own pharmacy.

She asked close friend and co-founder Surge Singh how she could automate the process and bypass costly agency fees.

It has now filled thousands of locum shifts, making its money by charging pharmacists a subscription fee to use its platform rather than a loading on shifts filled.

Signing on Sigma, which owns the Amcal and Discount Drug Store brands, comes amid a blockbuster merger with Chemist Warehouse – a deal now valued at more than $25bn.

Locumate co-founders Surge Singh and Navita Kadan.

It gives Locumate exposure to the majority of pharmacies in Australia, with Douglas Chemist Group, Prime Pharmacy and Allied Health Locums already signed as clients.

Locumate has also expanded to the US via HealthShifts, a joint venture with the American Pharmacists Association and Californian Pharmacists Association, which went live in December.

This has given Locumate exposure to 88,000 pharmacies in the US and a foothold in the global on-demand workforce market, which is expected to hit $US93bn ($150.3bn) by 2029.

“During the Covid pandemic we identified a huge gap in the on-demand workforce in the pharmacy industry and after creating Locumate.ai with Surge to solve that problem we realised the potential for our solution to operate in all types of business verticals,” Ms Nadan said.

“With Locumate.ai organisations have more control over their on-demand staffing needs on a daily basis and it is fast, efficient and enables more opportunities for mutually meaningful and long-lasting connections,” she said.

Expanding to other health professions

Mr Singh said the company was now expanding into other health professions.

“Apart from the push into pharmacy we have started looking at how we can help other verticals including all of Allied Health. Recently we signed up with Allied Health Locums, launching a new white labelled app across podiatry and physiotherapy,” he said.

But he stressed that Locumate does not compete with online job sites like Seek.

“We cater for niche professional services organisations such as pharmacies, allied health services all of which have jobs boards which need to be interactive, quick and simple to use as professionals are strapped for time and are looking for the right talent with the right data insights,” Mr Singh said.

“Thanks to the power of technology and artificial intelligence organisations can now be control of how they post shifts and who they release shifts to, whilst workers can choose which shifts they accept and which organisations they want to continue working with.”

Mr Singh said 1.5 million employees, or 16 per cent of Australia’s workforce, listed shift work as their main occupation in a range of industries, including health, emergency services, manufacturing, hospitality, and mining, underscoring the scale of the opportunity.

Sigma chief executive Vikesh Ramsunder and Chemist Warehouse co-founder Mario Verrocchi. Picture: NCA NewsWire / Luis Enrique Ascui

Workforce aggregator

Sigma head of retail operations Renee Watson said: “What impressed us about Locumate’s software was that it was an aggregator of the workforce within pharmacy, providing our members the agility they need to manage their on-demand workforce requirements.”

Douglas Chemist Group HR manager Mandy Ritchie said the cost savings from using Locumate allowed the company to “allocate resources more effectively across our community pharmacies”.

“Locumate has truly streamlined the process of managing locum placements. From finding the right candidates to ensuring seamless communication and scheduling, the platform takes the hassle out of what can often be a stressful process,” Ms Ritchie said.

“What stands out most is the unreal quality of locums on the platform. Every professional we’ve engaged through Locumate has been highly skilled, reliable, and the perfect fit for our pharmacy teams. This level of quality gives us complete confidence in maintaining exceptional patient care, even during periods of change or high demand.”

California Pharmacists Association chief executive Susan Bonilla said, “We have many thousands of pharmacist members in California and across the US and we believe the solution that Locumate.ai has come up with, and this joint venture here in the US, is really going to solve some of our very severe workforce issues”.

“This platform will really help to address some of the overwork and challenges many of our members are currently facing,” she said.

Sigma deal

The Australian Competition & Consumer Commission said in November it would not opposer Sigma and Chemist Warehouse’s merger after Sigma said it would grant concessions for pharmacy franchisees who may want to exit the brand after the deal.

Under the court-enforceable arrangements, franchisees will be able to switch to a new wholesaler or banner group without onerous exit costs. Sigma will also be required to safeguard and delete the data of those pharmacies that choose to switch. The merged Sigma-Chemist Warehouse will also remain a pharmaceutical wholesaler under the Commonwealth Government’s Community Service Obligation arrangements for five years.

Under the deal, Sigma will acquire all the shares in Chemist Warehouse in exchange for Sigma shares and $700m in cash. Originally billed as a $8.8bn deal, a 250 per cent surge in Sigma’s shares in the past year means it is now valued at $25bn.

The merger will result in Chemist Warehouse shareholders holding 85.75 per cent of the ASX-listed merged entity, while Sigma shareholders would hold 14.25 per cent.