Community pharmacy was left reeling after an epic parliamentary debate ended with a vote in favour of the imposed funding cuts, despite opposition from MPs and the public

The Department of Health’s community pharmacy funding cuts will be imposed as of 1 December. The cuts are predicted to have significant consequences for the sector, and pharmacy owners will undoubtedly have some tough decisions to make. 

“To say that the details of the final package were disappointing is a huge understatement,” Cormac Tobin, managing director of Celesio UK, said. “When the Government’s intentions were first laid out at the start of the process, the proposed financial arrangements were couched as part of a wider plan to transform community pharmacy. The ambition for community pharmacy for 2016/17 and beyond all seems grossly disingenuous given that the only thing we’ve really got to show is a reduction in funding.”

Feeling the effects

A recent survey carried out by the National Pharmacy Association (NPA) found that 86 per cent of its members are likely to reduce staffing levels and 76 per cent could have to reduce services during the coming months because of the cash flow challenges presented by the cuts, no doubt adding significant pressure on the NHS. 

NPA chairman Ian Strachan said: “Many community pharmacies expect to encounter cash flow difficulties in the period up to April 2017. They have few options to reduce their cost base quickly beyond cutting staff levels and reducing opening hours. This is bound to add to winter pressures on other parts
of the health service.”

Salim Jetha, chief executive officer at Avicenna, explained: “The funding cuts are equivalent to taking one full-time staff member out of the business – that could affect service levels.” This means that businesses would have to “question the viability of providing certain services, such as smoking cessation, health checks, and delivery services, which could affect patient care,” he said.

In addition, owners would need to look at reducing opening hours to save money, which again would impact on patients. 

Looking ahead

Mr Jetha is hoping to support Avicenna members and adapt the organisation’s resources as and when required. In addition, the company plans to look at increasing non-NHS revenue. “We are going to mobilise our people, drive additional revenue from services and look to increase our retail business,” Mr Jetha said.

Meanwhile, Day Lewis is determined to ensure that the impact of the cuts does not adversely affect the services it provides to its patients and is keen to reassure its employees. “We will tell our people that all their jobs are safe, and together we can get through this to ensure we continue looking after our patients in their local communities,’’ said executive director Jay Patel.

It seems inevitable that the cuts will force changes that will affect all staff members. But to what extent? Only time will tell.