60 Day Dispensing Impact on pharmacies and Suppliers

The change to 60-day dispensing (60DD) is one of the biggest changes to pharmacies in decades and the impact will be felt by the whole industry, suppliers and pharmacists alike.

In our most recent SalesTracker survey we asked our pharmacy customers how big they felt the impact would be on their pharmacy and what areas of the business this would affect. We gave our survey participants six options to choose from.

75% of Pharmacies said it would have a large effect on their business

Here are the areas the pharmacies think it would most impact most:?

#1 - Reduced trading hours

With the proposed reduction in income due to 60DD, it is not surprising that extended trading hours will likely be one the first areas to be cut.

Pharmacies with extended trading hours are usually not profitable, or less profitable, during these extended hours. Additional costs like penalty rates plus reduced customer traffic usually makes late nights and Sunday service marginal at the best of times.

#2 – Reduced Staff/Staff hours?

Staff costs are one of the main costs of any businesses. When trying to maintain profitability in the face of lost revenue, it is not surprising that the industry will try and reduce costs in this area.?

The Guild’s estimate of $170K loss to the bottom line of the average pharmacy has to be recouped somewhere. The reduced trading hours will automatically reduce staff hours, but it may not be enough and there are strong indications that further redundancies, especially of casual staff will be likely.

#3 – Change in buying quantity or product mix

40% of pharmacies nominated a third change, focused exclusively on redirecting funds to dispensary purchases and the resulting reduction in front of shop purchases.

Concerns related to cashflow issues that will arise as stock holdings increase for drugs slated for 60DD may drive these responses.

Strategies to lessen the 60-day dispensing impact

Over the next few weeks, Alita Sales will offer a number of strategies: They include strategies that Pharmacies could consider to maintain income whilst reducing trading hours, staff and potentially rationalising product ranges. Plus, specific strategies that Brands can employ to assist Pharmacies in mitigating the effects of 60-day dispensing.

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Read the full article here

https://alitasales.com.au/the-effects-of-60-day-dispensing-changes/