‘Announce first, consult later’: Labor’s fail on 60-day pharmacy dispensing plan

The government is still finalising modelling on its 60-day dispensing policy despite announcing it almost two months ago.

Health minister Mark Butler.

The Albanese government is yet to complete modelling on its 60-day dispensing policy despite announcing it almost two months ago, sparking outrage from the Coalition and Pharmacy Guild over why such work is only now being undertaken.

The Weekend Australian can reveal the Department of Health and Aged Care has quietly contracted McKinsey and Company and the University of Technology Sydney for modelling to “support the Department’s analysis” of the policy.

Following a breakdown in negotiations between the Pharmacy Guild, the government has also begun consultation with the Chemist Warehouse chain over the potential impact of 60 day dispensing.

“Chemist Warehouse is engaged in dialogue with the government on the impact of the 60-day dispensing measure and how best to maintain the viability of pharmacies, while delivering a benefit to consumers,” a Chemist Warehouse spokesman said.

The Weekend Australian understands Chemist Warehouse is providing its own data to the government modelling the impact of 60-day dispensing, which allows doctors to provide scripts for two month’s worth of medicine from September 1.

It follows The Australian revealing Health Department deputy secretary Penny Shakespeare wrote to guild executive director Suzanne Greenwood late last month to say the lobby group had “excluded itself from policy implementation discussions” by breaching a nondisclosure agreement.

The Guild rejected the claim it had acted in contravention of the NDA on the policy through communicating details on the government’s proposal to its members, something the lobby group said the office of Health Minister Mark Butler had agreed was appropriate.

“Unfortunately the voices of 6000 community pharmacies have been shut-out and the Pharmacy Guild has not been asked to participate in this process,” NSW Pharmacy Guild President David Heffernan told The Weekend Australian on Friday.

“It is disappointing to be told that the Department of Health are now modelling the 60 day dispensing policy after it had already been announced. This confirms that the government proceeded with this policy without having a true picture of the impact on jobs, closures, patients and the aged care sector.”

Mr Butler said analysis had been undertaken by the Office of Impact Assessment, which found there would be “substantial benefits” to patients through the government’s cheaper medicines policy.

“As the assessment makes clear the phasing of the medicines eligible for 60 day prescribing, the reinvestment of the government savings of $1.2bn into community pharmacy, and targeted programs for rural and regional pharmacies will support pharmacies during the transition,” he said.

“The government continues to work with all parts of the pharmacy sector on the implementation of this policy. The pharmacy sector makes a vital contribution to the health of our community.”

But opposition health spokeswoman, Anne Ruston, slammed the government for conducting modelling on a policy that had “already been announced”.

“And in a move that is even more insulting to the 5900 community pharmacies that are impacted, the government is hand-picking who they are talking to about implementation – completely ignoring the views of small, rural and regional pharmacies,” she said.

“This is further proof of Labor’s irresponsible ‘announce first, consult later’ approach to policy.”

The Pharmacy Guild’s concerted campaign against Labor’s dispensing policy, which includes claims of potential medicine shortages, has prompted concern from MPs in recent weeks.

Tasmanian Senators Tammy Tyrrell and Jacqui Lambie warned this week that $3.5bn was being “ripped out” of community pharmacies as a result of Labor’s 60-day prescription policy, and said some small pharmacies will be forced to close.

“Labor’s $3.5b cuts to pharmacies will mean medicine shortages, more expensive testing, reduced hours, waiting time blowouts, fewer deliveries, jobs lost and even pharmacy closures,” Senator Tyrrell said.

“We need a safety net. You can’t just rip out the bottom from community pharmacies and expect them to be okay. The consequences will have a domino effect on the entire healthcare system.”

Labor Senator Anne Urquhart raised alarm over the Pharmacy Guild using patient contact details from its “Find a Pharmacy” website to send out its campaign materials, something the guild has denied.