{"id":2853,"date":"2023-02-08T05:47:47","date_gmt":"2023-02-07T16:47:47","guid":{"rendered":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=2853"},"modified":"2023-02-08T05:47:47","modified_gmt":"2023-02-07T16:47:47","slug":"free-prescriptions-will-have-long-term-costs-pharmacists","status":"publish","type":"post","link":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=2853","title":{"rendered":"&#8216;Free&#8217; prescriptions will have long-term costs &#8211; pharmacists"},"content":{"rendered":"<p>The head of the Pharmacy Guild says community pharmacies are shutting down thanks to the influx of Australian-owned discount chains.<\/p>\n<p>Chief executive Andrew Gaudin warns in the long-term, this will reduce access to essential healthcare services &#8211; particularly for people outside the main centres.<\/p>\n<p>Discount pharmacies like the Chemist Warehouse and Countdown supermarket stores do not ask for the usual $5 prescription charges.<\/p>\n<p>&#8220;They&#8217;re using their commercial buying power and clout and running a loss-leader model, Gaudin told RNZ&#8217;s\u00a0<i>Nine to Noon<\/i><\/p>\n<p>&#8220;They&#8217;re absorbing the government&#8217;s $5 prescription charge. Effectively they&#8217;re manipulating government policy to buy market share, and drive and squeeze out the smaller, independent [owner-operator] pharmacies.&#8221;<\/p>\n<p>Prescription copayments were first introduced in the 1980s, and by the 2000s the cost\u00a0<a href=\"https:\/\/teara.govt.nz\/en\/medicines-and-remedies\/page-3\">had risen to double-digits<\/a>. The then Labour-led government reduced the charge to $3, which rose to $5 in 2013 under the following National-led government.<\/p>\n<p>In recent years big-box pharmaceutical retailers have started absorbing that cost, essentially making prescriptions free and giving them an advantage over smaller, locally owned outlets.<\/p>\n<p>Gaudin said for a typical pharmacy to absorb the cost would mean taking a $120,000 hit. Unable to do so, 70 community pharmacies have closed in the last four years, according to the Pharmacy Guild. Last year alone saw 30 shut their doors.<\/p>\n<p>In Auckland, Seema Rambisheswar permanently closed her Life Pharmacy store in Glenfield Mall just over a week ago, after working there for 22 years and owning it for 14.<\/p>\n<p>&#8220;It&#8217;s quite sad the time has come for me to close,&#8221; she told\u00a0<i>Nine to Noon.<\/i><\/p>\n<p>The writing was on the wall in 2020, when right after Covid-19 hit, a Chemist Warehouse opened in the same mall. Her landlord, assuming she&#8217;d struggle with rent, offered her a smaller venue.<\/p>\n<p>&#8220;I said no because if I did that, I&#8217;d have to refit a store and defit my existing store\u2026 that would just not have been viable.&#8221;<\/p>\n<p>She said big stores that don&#8217;t charge the copayment have led customers into wrongly believing that pharmacies who do charge are pocketing the money.<\/p>\n<p>&#8220;They have to realise it doesn&#8217;t. We collect it. We&#8217;re tax collectors. We collect it on behalf of the government and then we have to pay it back to the government. It doesn&#8217;t stay in our tills.<\/p>\n<p>&#8220;Now that I&#8217;m closing, people are [saying], &#8216;We will pay you, please don&#8217;t close.&#8217; But it&#8217;s too late. I&#8217;m at a point of no return\u2026<\/p>\n<p>&#8220;They&#8217;re using the copayment as a loss-leader. People are not looking at the bigger picture\u2026 they need to wake up, because long-term there will be problems.&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p>SOURCE RNZ<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The head of the Pharmacy Guild says community pharmacies are shutting down thanks to the influx of Australian-owned discount chains. Chief executive Andrew Gaudin warns in the long-term, this will reduce access to essential healthcare services &#8211; particularly for people outside the main centres. Discount pharmacies like the Chemist Warehouse and Countdown supermarket stores do [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2854,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[222,174],"tags":[],"class_list":["post-2853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/2853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2853"}],"version-history":[{"count":1,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/2853\/revisions"}],"predecessor-version":[{"id":2855,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/2853\/revisions\/2855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/media\/2854"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}