Changing your pharmacy name or size? You need approval!

Changing the name or size of your pharmacy can be an exciting time.? It might mean a new brand, colours, signage or configuration.? However, one task which is often overlooked in the process is the need for regulatory approval.

It is a legislative requirement for the State regulator and the Australian Department of Health and Aged Care to be notified of and to approve a change to a pharmacy:

• name;
• address (excluding relocation and as a result of, for example, change in shop numbering system);
• size (as a result of an expansion or contraction of the pharmacy premises).

By way of example:

• in Queensland, the regulator is Queensland Health.? At the time of writing, the Pharmacy Business Ownership Act 2001 (Qld) governs the operation of pharmacy businesses in Queensland.? It provides that a person who owns a pharmacy business must give notice of the change of ownership particulars (being, relevantly, the name or location of the pharmacy business) to Queensland Health in the prescribed form within 21 days after the date of the change.? Failure to do so exposes the owners of the business to a financial penalty and potentially disciplinary proceedings;
• in New South Wales, the regulator is the Pharmacy Council of New South Wales.?? The Council has different application forms to use for an expansion/reduction of pharmacy business, and a notice of change of pharmacy name.? It is imperative that the correct form is used and completed correctly.? For an expansion or contraction of a pharmacy premises, the application must be lodged with the Council at least 14 days before the intended change and application fees apply.? For a change of name, the application form must be lodged at the time of the change together with the required supporting documentation.? Failure to follow the correct procedures and process will likely result in a breach of the Health Practitioner Regulation National Law (NSW).

If the change being notified is a change to the pharmacy name or address, the Department of Health and Aged Care will issue an amended PBS approval certificate after the change has been approved by the Department.? The amended certificate will show the new name and/or address of the pharmacy business.? The PBS approval number for the pharmacy will not change.? It will stay the same as it was prior to the change.?? Notwithstanding, the business stationery (including dispensing labels) may still need to be updated as a result of the change of name and/or address of the pharmacy business.

Failure to notify the relevant regulators of the change of business particulars or the expansion or contraction of business premises may not only lead to a financial penalty but may also cause delays or confusion when the time comes to sell the business to a third party.? This is because the documents which are required to be submitted to the State regulator and Department of Health and Aged Care to obtain approval for change of ownership of the pharmacy business may not align with the records held by the regulators.? Consequently, the regulators may then require the necessary applications to be lodged for approval prior to the change of ownership application being approved, resulting in a delay to the progress of the transaction.

Pharmacy business owners are also encouraged to ensure thy comply with the requirements of the business name legislation that applies in their State or Territory.? If you are not sure what legislation applies to you or how to register your business name with the Australian Securities and Investments Commission, please seek legal advice.?

If you have any questions regarding applications for change of business particulars or expansion or contraction of a pharmacy business premises, please contact the team at Vitality Law Australia on (07) 2140 0522 or [email protected]

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This article is general in nature and does not constitute legal advice. Please obtain independent legal advice in respect of your own circumstances.

Sarah Stoddart is the founder and director of Vitality Law Australia, an award winning commercial law firm servicing pharmacy businesses and healthcare professionals across Australia.? For further information, email [email protected] or visit www.vitalitylawaustralia.com