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the effect of economic recession on PHARMACY business

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  • the effect of economic recession on PHARMACY business

    has anyone read any reports regarding this issue?
    any profit data from the big multiples?
    possibility of job loss? ( i doubt it)
    how are independent pharmacies coping with this challenge?

    have a say ppl
    [COLOR=Olive]xxxx They tried to break my back, but i survived. whatever doesn't kill you, will only makes you stronger xxxx
    [/COLOR]

  • #2
    Re: the effect of economic recession on PHARMACY business

    Well, as long as the NHS is paying on time I dont see any effect on the Pharmacy business which is troubled more by the Category M. Though many multiples and even some independents are making a hullahoo about it, I dont see why they are in trouble. It is a gimmic used not pay more salary or wages to staff.

    One more thing, if at all there is any sales loss it will be from the other stuff these people sell in the Pharmacy like the beauty, perfume etc.

    Shan
    [url]http://uk.youtube.com/watch?v=Eu2DA4I4TGw[/url]

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    • #3
      Re: the effect of economic recession on PHARMACY business

      Pharmacy always regarded in the past as recession proof.
      johnep

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      • #4
        Re: the effect of economic recession on PHARMACY business

        Well...................!!

        As a survivor of the last recession I feel qualified to contribute.

        As Shan so happily points out, Category M has indeed slashed income for contractors big and small. It isn't a ruse to pay staff less it is a huge reduction in income but as she is gloriously insulated from it I will indulge her. However, no-one can pay wages to people from money they don't have. Spending what you don't have is a ticket to bankruptcy. Category M has nothing to do with the recession.

        It has also been mentioned that as some pharmacies have an OTC demand, that should improve things..............? OTC sales do NOT go up in a recession, people have less money and therefore can't spend what they don't have on cosmetics etc. Also, in 1990 the average pharmacy had a 60/40 split between NHS and OTC. Today it is nearer 90/10 so it will take a monstrous improvement in counter sales to redress today's difficulties.

        Where the recession will affect pharmacy, and believe me it will, is that the NHS will have less money. In a recession, growth falls, companies go broke and staff lose their jobs. This impacts on the tax take the government gets.........it goes down (as companies pay less corporation tax and workers pay less income tax. Social security payments then start to oncrease) so less to spend on the NHS and by association.......pharmacy. We will get the situation we got in 1992 when Brian Mawhinney the health secretary, announced a reduction in remuneration by saying he was the minister for health..... NOT employment.

        Things are compounded this time with the massive amount of money borrowed to bail out the banks. The interest repayments on this will take money out of the exchequer and again, all government funded services (including pharmacy) will suffer.

        It is too early to say that the recession is affecting pharmacy but those with decent OTC sales will be noticing depressed sales (my OTC is negligible so it isn't affecting me yet however I do have colleagues who are noticing a severe downturn already). Enhanced services will not be commissioned and remuneration will be static or fall.

        Pharmacies with large borrowings will benefit from the recent drop in interest rates but getting funding from banks is definitely more difficult than it was a year ago to fund service improvements.

        Pharmacy will survive the recession more easily than if you are selling luxury cars or belgian chocolate. However aspirations will need to be revised down because we are so dependent on government funding and that is inevitably going to decrease until things improve. I think we will start feeling the pinch for real in late spring and it will take a year or so after everything improves (which could be years) before the government starts investing in the NHS again at the rate it has.

        If we get a change of government of course, the conservatives have just pledged a reduction in public spending. That will of course hit anyone relying on the public purse..............like pharmacists, even harder and for a longer time.
        http://uk.youtube.com/watch?v=Hmbyj0XFUhA

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        • #5
          Re: the effect of economic recession on PHARMACY business

          Tony, you are absolutely correct. In previous recessions, no category M and at that time pharmacy was allowed a 25% mark up on prescription products.

          Market just changing from simple mixtures like Mist Gent Alk to Tagamet and Zantac so margins were very healthy.

          Then the PSNC traded away on cost for restricted entry, but on cost not restored when 100 hour pharmacies allowed.

          Remember MUR money was simply deducted from global sum. Would not surprise me if govnmt simply stopped MURs to save money. Previous recessions tinged with 30s memories. These days no one has any idea what a recession could mean. We used to have people singing in the streets for a few pence.
          We're all doomed!
          johnep

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          • #6
            Re: the effect of economic recession on PHARMACY business

            We aren't doomed we are pharmacists.

            We must adapt. We have so much more to offer than counting and pouring so NOW is the time to start demonstrating it.

            Pharmacists I know running clinics in GP surgeries and in addiction services are prospering. Transferring this to community pharmacy is the way forward.

            It will require investment of time and effort in acquiring clinical skills, not moaning and complaining.

            When the going get's tough..........................?
            http://uk.youtube.com/watch?v=Hmbyj0XFUhA

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            • #7
              Re: the effect of economic recession on PHARMACY business

              Originally posted by Tony Schofield View Post

              Enhanced services will not be commissioned and remuneration will be static or fall.
              Originally posted by Tony Schofield View Post
              Pharmacists I know running clinics in GP surgeries and in addiction services are prospering. Transferring this to community pharmacy is the way forward.

              It will require investment of time and effort in acquiring clinical skills, not moaning and complaining
              Is there something I'm not getting in all of this? Surely if the enhanced services are not going to be commissioned then it makes no difference how skilled you are or how many clinics you can run? Or are you saying that those already offering these services when the recession really grips will do OK because the Govt will continue funding things it has already commissioned?
              Sorry if I'm not making any sense - I struggle with these things

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              • #8
                Re: the effect of economic recession on PHARMACY business

                I should have said growth of enhanced services will cease.

                What I am saying is that you should improve your skills and make yourself more "marketable". The "Shans" of this world seem to think that the economic realities facing pharmacy contractors a) are a con and b) will have no impact. As a contractor I am advising pharmacists that if they want people to employ them they should look outside of traditional employment.

                Do a prescribing course. The demand for specialist drug and alcohol services will probably increase as economic hardship increases!
                http://uk.youtube.com/watch?v=Hmbyj0XFUhA

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                • #9
                  Re: the effect of economic recession on PHARMACY business

                  And there was me thinking that getting on the register was the important thing - yet here I am and all people can talk about is all the extra training I need, can't help feeling that I am already falling behind!
                  I have only just qualified and have found a job but I'm still trying to get my MUR accreditation - what do you think is the best thing to do next?

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                  • #10
                    Re: the effect of economic recession on PHARMACY business

                    You should have been told during your course that the degree was the beginning not the end of your learning.

                    In the forseeable future pharmacists competency will be re-validated possibly with an oral exam periodically.
                    http://uk.youtube.com/watch?v=Hmbyj0XFUhA

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                    • #11
                      Re: the effect of economic recession on PHARMACY business

                      AstraZeneca is axeing 250 UK jobs as part of a plan to shed 1400 worldwide

                      GSK- 620 jobs

                      Bitter pill as drugs giant AstraZeneca chops workers | Business
                      [COLOR=Olive]xxxx They tried to break my back, but i survived. whatever doesn't kill you, will only makes you stronger xxxx
                      [/COLOR]

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                      • #12
                        Re: the effect of economic recession on PHARMACY business

                        Pharmaceutical manufacturers have always opened and closed plants at will. They still recruit graduate pharmacists.
                        http://uk.youtube.com/watch?v=Hmbyj0XFUhA

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                        • #13
                          Re: the effect of economic recession on PHARMACY business

                          Phoenix has sold five Rowlands pharmacies in the Wirral area
                          Rowlands sells Wirral stores - Chemist + Druggist
                          [COLOR=Olive]xxxx They tried to break my back, but i survived. whatever doesn't kill you, will only makes you stronger xxxx
                          [/COLOR]

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                          • #14
                            Re: the effect of economic recession on PHARMACY business

                            They appear to have been sold as ongoing concerns..no loss of jobs..may not be a bad thing.
                            Don't Stop Believing

                            http://youtube.com/watch?v=rnT7nYbCSvM

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