Woolworths ACIL Report A Welcome Contribution To Pharmacy Agreement Debate
AMA President, Dr Bill Glasson, said today that the ACIL Tasman economic analysis of pharmacy deregulation prepared for Woolworths is a welcome and timely contribution to the political debate in the lead-up to the finalisation of the fourth pharmacy agreement and in policy discussions regarding pharmacy issues generally, including ownership.
Dr Glasson said the analysis covers key areas of competition raised by the AMA in its January 2005 Submission to the Productivity Commission Review of National Competition Policy Reforms - namely who can own a pharmacy, the location of pharmacies, and pharmaceutical distribution costs.
"It is important that the Government examines all the available information and analysis in its formulation of the pharmacy agreement, and this report provides some interesting statistics and international comparisons," Dr Glasson said.
Key findings of the ACIL analysis include:
- The fastest growing component of government health expenditure is PBS subsidies, of which pharmacist remuneration is a big part
- It is estimated that potential cost savings through pharmacy reform could reach over $500 million per year - or $25-30 billion in net present value terms by 2042
- In the UK where supermarkets are involved in retail pharmacy, there has been a substantial reduction in the price of pharmaceuticals.
Dr Glasson said the ACIL report would be interesting reading for consumers and the 80 per cent of Australian pharmacists who are not owners of pharmacies.