Last week, the government announced an investment of up to £645m into community pharmacy to “expand services” over two years.
But Vinku Shah, partner at accountancy firm Silver Levene LLP, told C+D this week (May 15) that this is “not enough”.
Read more: UPDATED: Government injects £645m investment into community pharmacy
The sum “would equate to around £28,000 to £30,000 per annum per pharmacy”, according to a funding breakdown calculated by Mr Shah.
“A lot of contractors will be eager to know how £28-30,000 per annum over two years will be distributed and invested,” he said.
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But he told C+D that an injection of this amount into each pharmacy is “not the most likely scenario”, with funding allocation still to be negotiated.
And “even if it was, it is not enough to address the severe cashflow issues” in the sector, he added.
“Still 10 months to go”
“The government’s commitment to invest £645m indicates that community pharmacy is now being taken as a serious stakeholder at the forefront of our country’s healthcare system,” Mr Shah said.
But he added that “community pharmacy businesses have been struggling with cashflow for the past 12-18 months and are in dire need of immediate cash injection”.
And it comes as there are “still at least 10 months to go under the current funding status”, with the current five-year contractual framework due to expire in 2023/24, he said.
Read more: ‘Devil in the detail’: Sector cautiously welcomes plan to expand services
This contract “did not take into account” inflationary increases affecting the cost of drugs and having a “negative impact” on cashflow, the energy crisis resulting in higher operating costs or staffing shortages resulting in higher rates and locum costs, Mr Shah told C+D.
It also did not consider “unprecedented” drug shortages and the “squeeze on margins” from buying at higher prices to ensure stock is available, as well as regular interest rates increases that resulted in higher cash outflows, he said.
Read more: Will additional funding for pharmacies prove to be a prescription for success?
“The new contract will have to take into account all of the factors affecting community pharmacy and need to be more flexible to counteract these unforeseen pressures on community pharmacy businesses,” he added.
C+D approached NHS England (NHSE) and the Department of Health and Social Care (DH) for comment.
Recovery plan
The government’s new primary care recovery plan last week said that the £645m pharmacy cash injection will fund a new Pharmacy First service for England as well as expansions to the existing pharmacy oral contraceptive and blood pressure programmes – “subject to consultation” and negotiations.
Pharmacy leaders cautiously welcomed the plans to expand the provision of community pharmacy services in England, but stressed that detail remains scant.
The Pharmaceutical Services Negotiating Committee (PSNC) stressed that while the plans are “a very welcome step” and the negotiator is “looking forward to discussing the details” with commissioners, the “devil will be in the detail”.
Check the C+D site for the latest coverage on this developing story
