March 2008

Mike Smith P3 Column – The Perfect Storm

The conditions seem about right… Those of you that saw the film of this name will remember that everything came together at just the wrong time and with dire consequences.

I predicted in this column last November that pharmacists would start to feel the pinch on their cash flow about now and recent reports have shown that this is definitely the case. The Department of Health and PSNC have both stated that excess profits were made by contractors in the last two years and it may indeed be the case that the government is now simply recovering that excess. The problem however, lies for those contractors who reinvested this profit in their staff and premises, to improve services in order to meet the requirements of the pharmacy contract.

We are all acutely aware that funding for locally commissioned services has not been forthcoming and those contractors that have invested in services now find themselves with increased overheads and capital commitments for which they have yet to see any significant return. Coupled with this concern is a fear that I have previously stated, that the DH may well have its sums wrong. I remember voicing my concerns in the early days of the “new” contract that the mechanism around retained purchase profit should be robust and transparent. I am still not sure that this is the case. Meanwhile, we seem to have walked from a nationally negotiated system with many flaws, into one involving partially devolved payment which is quite frankly chaotic! As the DH is upping the anti on the medical profession I sincerely hope that this will not distract them too much from the problems facing the pharmacy profession.

Despite these continued challenges I remain passionate about pharmacy and optimistic about the future. As I said at the UniChem Pharmacy Awards in November, pharmacists have demonstrated that they can deliver and the DH must keep its side of the deal. I take the opportunity again to remind you to keep your eye on the ball about local developments. Keep in touch with your local surgery, PCT and councilors and keep a close eye on any planning applications in your area. You may well come across some unwelcome developments -100 hour pharmacies, one-stop centres, LIFTs, etc, but keep your nose to the ground to avoid any nasty surprises. Most importantly please ensure that your pharmacy is the best in the area. Never forget that your greatest assets are your personal skills and those of your staff.

I read with interest that the CCA and AIMp are to work together. This is a welcome move and one that I hope will lead to a more unified approach to negotiation. My question has to be; why not include the independents and provide a truly representative body with which to approach the DH? Isn’t this something that the PSNC and/or the RPSGB should be championing anyway? We need more unity than ever and our representative bodies must understand this, or I fear that the RPSGB in particular will be in danger of becoming a body representing minority interests and will thus be consigned to the history books.

Rosie and I have just returned from a wonderful trip to India. This is an incredible country and our journey really put into perspective what is important in life. I was very impressed with the work that Kirit Patel has done in Gujarat to support older citizens in the state. In particular I met a doctor who is looking to establish an eye-clinic in the area. It is amazing that for just £20-30 you may be able to restore a person’s sight with a simple cataract operation and this really made me think about supporting such a venture. If any of you would like to be involved please drop me an e mail.

I wish you well. The future is bright but it will undoubtedly be another tough year for pharmacy.

mike.h.smith@unichem.co.uk