Labor accused of making pharmacy policy ‘on the run’

The opposition says it has serious concerns the federal government failed to undertake proper consultation on the shift to 60-day dispensing of hundreds of medicines.

Health Minister Mark Butler. Picture: NCA NewsWire / Martin Ollman

The opposition says it has serious concerns the federal government failed to undertake proper consultation on the shift to 60-day dispensing of hundreds of medicines, after it was revealed an assessment of the policy said some aspects of the consultation over the reforms fell short of good practice.

The Office of Impact Analysis within the Department of Prime Minister and Cabinet, which scrutinises how policy proposals affect businesses, individuals and community organisations, marked the quality of the impact analysis prepared by the government on its pharmacy prescribing policy changes as “adequate” – falling short of “good practice”.

It estimated pharmacies would lose on average $158,000 a year due to reduced dispensing fees.

Office of Impact Analysis executive director Jason Lange suggested in a letter that more consultation with these stakeholders could have taken place.

“To have been assessed as ‘good practice’ under the Guide, the IA would have benefited from more recent public consultations on potential stakeholder impacts, particularly for small businesses and pharmacies in rural and remote areas,” Mr Lange said.

“Moreover, where stakeholder impacts are difficult to ascertain … the IA would have benefited from a more detailed evaluation plan.”

The government’s analysis noted “pharmacy owners will receive significantly less PBS income due to the decrease in the volume of dispensing-related remuneration resulting from the proposed PBS changes” and “the impact on specific pharmacies will vary”.

Opposition health spokeswoman Anne Ruston said she was concerned the policy had been implemented “on the run”. “It is astounding the Labor government announced this significant health policy without undertaking proper consultation on the impacts it could have on community pharmacies across Australia,” she said.

Health Minister Mark Butler said the policy had been suggested in 2018 and was well known to the pharmacy sector, and significant consultations had taken place.

“The Office of Impact Assessment recognises the substantial benefits to patients from the government’s cheaper medicines policy,” Mr Butler said.

Pharmacy Guild president Trent Twomey said “the impact of this decision … reinforces what we have been saying: community pharmacies, and our patients, will be significantly impacted”.