The economic analysis of the community pharmacy sector, finally published today (March 28), has estimated the “full economic cost” of providing NHS pharmaceutical services in England.
It said that this was “in the range £4.397-5.730 billion" in the 12 months to March 31 2024.
Read more: NHSE refuses to publish pharmacy economic review before contract
And it found that “around 47% of pharmacies were not profitable in their last accounting year, as measured by earnings before interest, taxes, depreciation, and amortisation (EBITDA)”.
The 91-strong page document concluded that 99% of pharmacies in England are funded at less than this “full economic cost”, meaning they are “not sustainable in the long-run”.
And more than three-quarters (78%) are “unsustainable in the short-run”, it said.
“On a mission”
Pharmacy minister Stephen Kinnock said that the “stark analysis shows community pharmacies have been driven to the brink of collapse by years of underfunding and neglect”.
“We are on a mission to stabilise the sector and make it fit for patients and pharmacy teams long into the future – and that starts by agreeing a major new funding package due to be announced shortly,“ he added.
Kinnock stressed that “reversing over a decade of decline will take time”, but that the government “will deliver the fundamental reforms needed to get the sector back on its feet”.
Read more: HSCC give NHSE 2-week deadline for economic analysis update
NHS England (NHSE) last week confirmed that both the government and pharmacy negotiators had seen the economic analysis of the sector – but said that it would not share the report until the pharmacy contract is announced.
It came after Health and Social Care Committee (HSCC) chair Layla Moran last month wrote to NHSE urging the commissioner for an update on the pharmacy economic review, after sector leaders had demanded that it be published “immediately” .
The long-awaited review, which officials said would “inform any future decision on the funding of community pharmacies”, was first announced in 2022 but had still not begun in February last year.
