Review of Pharmacy Remuneration and Regulation

During negotiations for the Sixth Community Pharmacy Agreement (6CPA) in 2015 the Australian Government and the Pharmacy Guild of Australia made a commitment to conduct an independent Review of Pharmacy Remuneration and Regulation (the Review). A Final Report will be provided to the Minister for Health.

Page last updated: 26 July 2017

Latest News

Submissions Closed

Submissions to the Review’s Interim Report are now closed.

The Review Panel has welcomed the submission of feedback and additional insights in relation to the options outlined in the Interim Report. This information will support the Panel’s development of its Final Report to the Minister.

Public submissions to the Review were invited via the Department’s Consultation Hub, where interested parties were given the option of either uploading a written submission or providing a short response to one or more of the reform options presented in the Interim Report.

All non-confidential submissions to the Review and responses to the online questionnaire will be made available for viewing via the Department’s Consultation Hub.

Subscribe for updates to receive notification when submissions and responses have been published.

During the public submission window the Review Panel consulted with peak health consumer, pharmacy and industry bodies who are representative of all participants in the pharmacy supply chain. These bilateral discussions have provided the Panel broad feedback on the reform options presented in the Interim Report and to discuss the provision of any new evidence relevant to the Panel’s development of its Final Report.

An Update from the Chair

On 12 July 2017, the Chair of the Review Panel, Professor Stephen King, provided an update on the Panel’s recent consultations with stakeholders and is pleased to release four additional reports of finalised research work commissioned by the Panel.

You may view the reports via the Review of Pharmacy Remuneration and Regulation – Commissioned Research page.

In his latest Message, Professor King provides an overview of each report as well as an update on the Panel’s consultations with peak representative bodies on the reform options presented in the Interim Report .

Release of the Review’s Interim Report

The Review Panel is pleased to present the Interim Report for the Review of Pharmacy Remuneration and Regulation (the Review).

The vision underpinning the Review’s Interim Report is for an integrated and sustainable community pharmacy sector, which is adaptive to the inevitable changes in health care given Australia’s ageing population, rapid advances in technology and ongoing Pharmaceutical Benefits Scheme (PBS) reform.

The issues in the Interim Report are complex, with the potential to impact significantly on community pharmacy, and the Review Panel has decided to present options rather than draft recommendations in the Interim Report.

In his accompanying message, the Chair of the Review Panel, Professor Stephen King, highlights some of the Review Panel’s key findings and options for reform which are presented in the Interim Report for stakeholders to consider. He also provides information on the consultation process in the lead up to the Review’s Final Report.

Professor King has also recorded a special video message on behalf of the Review Panel in which he presents an introduction to the key issues and reform options presented in the Interim Report.

Commissioned Research

In keeping with the Review Panel’s commitment to a transparent Review process, the reports of all finalised research work commissioned by the Panel will be made available.

The Panel has released the reports of targeted consumer consultations, an international literature review, and qualitative and quantitative research analyses of pharmacy professionals and consumers.

Further, additional reports on the qualitative and quantitative research analyses of pharmacy professionals and consumers, the outcomes of the Review’s Pharmacy Financial Survey, and Financial Analysis of Pharmacy Remuneration and Regulation have now been made available.

You may view each of these reports via the Review of Pharmacy Remuneration and Regulation – Commissioned Research page.

Subscribe for updates

This page will be updated, and identified stakeholders notified, when further information is available. If you wish to be emailed regarding updates, you can register your interest by clicking on the subscribe button below and entering your name and email address.


About the Review
Terms of Reference
Review Panel Members
Messages from the Chair
Public Statement from the Department of Health
Interim Report
Commissioned Research
Pharmacy Financial Survey
Discussion Paper
Information Brochure
Submissions to the Discussion Paper
Consultation
Live National Webcast
For more Information

About the Review

A panel of three independent expert reviewers is undertaking the Review and will provide recommendations on future remuneration, regulation including Pharmacy Location Rules, and other arrangements that apply to pharmacy and wholesalers for the dispensing and supply of medicines and other services, including the preparation of infusions or injections for chemotherapy, provided under the PBS. The focus is to ensure consumers have reliable and affordable access to medicines.

Terms of Reference

In making its recommendations, the Review Panel will consider issues raised during its consultation process within the context of its Terms of Reference.

Review Panel Members

On 24 November 2015, the then Minister for Health announced the three members of the independent Panel for the Review, together with its Terms of Reference. They are Professor Stephen King (Chair), Ms Jo Watson and Mr Bill Scott.

The Review Panel members have extensive pharmacy, economic, policy and consumer representation expertise, ensuring that the process leads to positive outcomes for pharmacists and consumers.

A brief introduction to each of the Review Panel members can be found below.

Messages from the Chair

A Message from the Chair – July 2017 (PDF 121 KB) - A Message from the Chair – July 2017 (Word 3634 KB)
Message from the Chair – 22 June 2017 (PDF 111 KB) - Message from the Chair – 22 June 2017 (Word 342 KB)
Message from the Panel - 16 December 2016 (PDF 116 KB) - Message from the Panel - 16 December 2016 (Word 28 KB)
Message from the Chair - December 2016 (PDF 143 KB) - Message from the Chair - December 2016 (Word 5292 KB)
Message from the Chair - October 2016 (PDF 159 KB) - Message from the Chair - October 2016 (Word 1395 KB)
Message from the Chair - Mid-September 2016 (PDF 474 KB) - Message from the Chair - Mid-September 2016 (Word 4265 KB)
Message from the Chair – September 2016 (PDF 228 KB) - Message from the Chair – September 2016 (Word 3280 KB)
Message from the Chair – August 2016 (PDF 636 KB) - Message from the Chair – August 2016 (Word 383 KB)
Message from the Chair – July 2016 (PDF 130 KB) - Message from the Chair – July 2016 (Word 730 KB)
Message from the Chair – March 2016 (PDF 148 KB) - Message from the Chair – March 2016 (Word 287 KB)

Public Statement from the Department of Health

Message from the Department of Health – 22 December 2016 (PDF 236 KB)
Message from the Department of Health – 22 December 2016 (Word 141 KB)

Interim Report

The Interim Report presents the independent Review Panel’s findings and options for reform arising from the Review of Pharmacy Remuneration and Regulation.

PDF version of the Interim Report (PDF 4273 KB)
Word version of the Interim Report (Word 18354 KB)

The Panel’s vision underpinning the Interim Report is for an integrated and sustainable community pharmacy sector, which is adaptive to the inevitable changes in health care given Australia’s ageing population, rapid advances in technology and ongoing Pharmaceutical Benefits Scheme (PBS) reform.

The issues presented in the Interim Report are complex, with the potential to impact significantly on community pharmacy.

Submissions to the Review’s Interim Report

Submissions to the Review’s Interim Report are now closed.

The Review Panel has welcomed the submission of feedback and additional insights in relation to the options outlined in the Interim Report. This information will support the Panel’s development of its Final Report to the Minister.

Public submissions to the Review were invited via the Department’s Consultation Hub, where interested parties were given the option of either uploading a written submission or providing a short response to one or more of the reform options presented in the Interim Report.

All non-confidential submissions to the Review and responses to the online questionnaire will be made available for viewing via the Department’s Consultation Hub.

During the public submission window the Review Panel consulted with peak health consumer, pharmacy and industry bodies who are representative of all participants in the pharmacy supply chain. These bilateral discussions have provided the Panel broad feedback on the reform options presented in the Interim Report and to discuss the provision of any new evidence relevant to the Panel’s development of its Final Report.

Commissioned Research

The results of all finalised research commissioned by the Review will be made public as it becomes available.

You may view the reports of this work via the Review of Pharmacy Remuneration and Regulation – Commissioned Research page.

Pharmacy Financial Survey

The Review Panel is committed to making recommendations that are built on a solid foundation of evidence. A comprehensive financial analysis of the community pharmacy sector is important in ensuring that the Review makes recommendations that appropriately reflect the challenges and opportunities faced by the breadth of Australian pharmacies. To inform this analysis the Panel commissioned a targeted survey to directly obtain relevant financial data from a broad cross section of Australian community pharmacies.

In response to concerns amongst some pharmacy owners regarding the intended purpose of the Review’s Pharmacy Financial Survey, the Review Panel released a message clarifying its purpose in conducting the survey and how the data collected will be used to inform its recommendations:

Pharmacy Financial survey – A Clarification from the Review Panel (PDF 133 KB)
Pharmacy Financial survey – A Clarification from the Review Panel (Word 401 KB)

To assist prospective respondents in their decision to participate in the survey a copy of the survey questions was also made available:

Sample Pharmacy Financial Survey Questions (PDF 140 KB)
Sample Pharmacy Financial Survey Questions (Word 85 KB)

You may view a report of this work via the Review of Pharmacy Remuneration and Regulation – Commissioned Research page.

Discussion Paper

PDF version: Review of Pharmacy Remuneration and Regulation - Discussion Paper (PDF 2807 KB)
Word version: Review of Pharmacy Remuneration and Regulation - Discussion Paper (Word 9655 KB)

The Discussion Paper reflects the Review Panel’s discussions with, and input from, a broad range of stakeholders and representative bodies from pharmacy, wholesaling, hospital and consumer sectors. The aim of the Discussion Paper is to stimulate discussion on both the current arrangements, and the way the community pharmacy sector should look in the future.

Information Brochure

A printable information brochure was made available to encourage responses to the Discussion Paper. The brochure provided a convenient way to share information and discuss the Review with colleagues, patients, family or friends.
Information Brochure - Have your say (PDF 241 KB)Information Brochure - Have your say (Word 23 KB)

Submissions to the Discussion Paper

All non-confidential submissions received in response to the Discussion Paper can be viewed on the 'Review of Pharmacy Remuneration and Regulation - Submissions to the Review' page.

Confidentiality of Submissions

The Panel intends the Review to be as transparent as possible to encourage public trust in the process being followed by the Review. Therefore, all submissions have been published on the Review website following the redaction of personal and confidential information, as necessary, and with the agreement of authors to publish.

Consultation

To support submissions to the Discussion Paper a round of public forums was held in metropolitan and regional centres across Australia from 1 August to 7 September 2016. Forums were held in the following locations:

Day
Date
City / Town
Venue
Address
Mon
01/08
PerthFraser Suites10 Adelaide Terrace, East Perth, Western Australia, 6004
Tues
02/08
AdelaideAdelaide Convention CentreNorth Terrace, Adelaide, South Australia, 5000
Thurs
04/08
Broken HillThe Musicians Club276 Crystal Street, Broken Hill, New South Wales, 2880
Tues
09/08
MelbourneNovotel Melbourne on Collins270 Collins Street, Melbourne, Victoria, 3000
Wed
10/08
HobartRydges Hobart393 Argyle Street, Hobart, Tasmania, 7000
Thurs
11/08
LauncestonThe Sebel Launceston12 St John Street, Launceston, Tasmania, 7250
Mon
15/08
CanberraHellenic ClubMatilda Street, Woden, Australian Capital Territory, 2606
Tues
16/08
Wagga WaggaWagga RSL ClubDobbs St & Kincaid Street, Wagga Wagga, New South Wales, 2650
Wed
17/08
Albury-WodongaAlbury Tigers ClubWodonga Place, Albury, New South Wales, 2640
Mon
22/08
CairnsHoliday Inn Cairns Harbourside209-217 The Esplanade, Cairns, North Queensland, 4870
Tues
23/08
BrisbaneBrisbane Convention and Exhibition CentreMerivale St & Glenelg Street, South Brisbane, Queensland, 4101
Thurs
25/08
SydneyThe Menzies Sydney14 Carrington St, Sydney, New South Wales, 2000
Mon
29/08
BroomeMercure BroomeWield Street, Broome, Western Australia, 6725
Tues
30/08
DarwinMantra Pandanus43 Knuckey Street, Darwin, Northern Territory, 0800
Thurs
01/09
Alice SpringsQuest Alice Springs9–10 South Terrace, Alice Springs, Northern Territory, 0870
Wed
07/09
Live National WebcastOnline (broadcast from 50MC Theatre, Canberra)In Person:
50 Marcus Clarke St,
CANBERRA ACT

Live National Webcast

Public consultations for the Discussion Paper culminated with a live national webcast, broadcast from Canberra on 7 September 2016.

The webcast provided an opportunity for stakeholders and consumers to join the national conversation and express their views regarding the future of pharmacy to the Review Panel through the Livechat facility and hashtag #pharmacyreview.

Consultation Stages

Stage 1 – Bilateral Meetings (December 2015 – March 2016)

The first stage of consultation for the Review was a series of face-to-face meetings with key industry and consumer stakeholders to inform the development of a Discussion Paper. Stakeholders included a range of organisations across the pharmaceutical supply chain including, but not limited to, consumer, pharmacy, wholesaler and health practitioner groups.

Stage 2 – Release of Discussion Paper (July 2016)

A Discussion Paper was released in July 2016, along with an invitation for written submissions to the Review. An online questionnaire also provided an additional mechanism for responses to core issues raised in the Discussion Paper.

Stage 3 – National Consultation Process (August – September 2016)

From 1 August 2016, a national consultation process was held across capital cities and regional areas of Australia. The consultation process provided a valuable opportunity for organisations and individuals to participate in the discussion of pharmacy issues with the Review Panel.

Stage 4 – Release of Interim Report (June 2017)

The fourth stage of consultation commenced following the release of the Interim Report in June 2017.

The Review Panel consulted with peak health consumer, pharmacy and industry bodies who are representative of all participants in the pharmacy supply chain. These bilateral discussions provided an opportunity for the Panel to obtain consolidated feedback on the reform options presented in the Interim Report and to discuss any new evidence relevant to the Panel’s deliberation of its final recommendations.

The Review Panel also welcomed the submission of feedback and additional insights in relation to the options outlined in the Interim Report. This information will support the Panel’s development of its Final Report to the Minister.

Stage 5 – Final Report

The Review Panel will provide its findings and recommendations to the Australian Government in a Final Report to the Minister.

For more Information

Review enquiries:
Email: Review Secretariat
Media enquiries: News or telephone 0412 132 585.


Review Panel


Professor Stephen King – Industrial Economist and Chair

Professor King is the Chair of the Review Panel.

Professor King is a Commissioner with the Productivity Commission, having commenced in this role from 1 July 2016. Professor King was recently Professor of Economics and former Dean at Monash University. Prior to joining Monash University, Professor King was a Member of the Australian Competition and Consumer Commission (ACCC). Before that, he was a Professor of Economics at the University of Melbourne and a Professor of Management (Economics) at the Melbourne Business School.

Professor King’s main areas of expertise are in competition economics, regulation and industrial organisation. While at the ACCC, he chaired the Mergers Review Committee and was closely involved with a wide range of merger decisions. He was involved in the full range of activities undertaken by the Commission. These included both on-going functions – such as authorisation decisions, regulatory determinations and enforcement actions under the Competition and Consumer Act – and ad hoc activities undertaken by the Commission. For example, Professor King was one of the three Commissioners who undertook the Part VIIA inquiries into the price of unleaded petrol in Australia and into the Australian grocery industry. He was also one of the two Commissioners presiding over the Services Sydney-Sydney Water Access Dispute. This was the first arbitration completed under Part IIIA of the Competition and Consumer Act.

From 2003 to 2014, Professor King was a Lay Member of the High Court of New Zealand and in 2007 assisted the Court in the appeal by Woolworths and Foodstuffs against a decision of the New Zealand Commerce Commission. He is also a part-time Member of the Economic Regulation Authority of WA, and of the National Competition Council.

Ms Jo Watson and Mr Bill Scott are the other Panel Members.

Ms Jo Watson – Consumer Representative

Ms Watson has been engaged in the areas of health policy development, access to medicines, and patient engagement with health technology assessments for the past 20 years. She is the Deputy Chair of the Consumers Health Forum of Australia (CHF), and has been a Director on the CHF Board since 2012.

Ms Watson has been a health consumer advocate and community representative for many years, including her role as the Executive Director of the National Association of People with HIV Australia (NAPWHA) from 1998 to 2014.

Ms Watson has been the consumer nominee of the Pharmaceutical Benefits Pricing Authority (PBPA) from 2002 to 2012, and commenced as the consumer nominee to the Pharmaceutical Benefits Advisory Committee (PBAC) in 2013.

Ms Watson represented CHF at the Minister's Roundtable at the beginning of the 6th Community Pharmacy Agreement negotiations in 2015, and continued in this role for the ongoing bilateral discussions between CHF and the Department of Health for that period.

Ms Watson is currently also Chair of the Health Technology Assessment Consumer Consultative Committee.

Bill Scott – Pharmacy Representative

Mr Scott has been a Committee Member of the Pharmacy Guild’s Victorian Branch since 1986.

Mr Scott is a pharmacist with a quarter share in three pharmacies. Although having a reduced role in the day to day management of these pharmacies, Mr Scott still remains very active in the industry and maintains an up to date clinical knowledge.

Mr Scott has a unique mix of experience as a former Director of Sigma Pharmaceuticals Limited and as Chairman of the Negotiating Committee for the Guild on the 4th and 5th Community Pharmacy Agreements.

Mr Scott is a current Director of Fred IT Pty Ltd and was also a Director of Guildlink until 2014.

Mr Scott is highly respected in pharmacy, by other health professionals and in the wider health sector. Mr Scott has wider business experience through ten years on the Council of the Australian Chamber of Commerce and Industry including one year on the Board.

Mr Scott also has a long history in community organisations. His previous community roles include being Whittlesea Councillor for 5 years, founder of the Whittlesea Community Health Centre, Board Member and Chairman of Bundoora Aged Care Centre, Chairman of Promote Whittlesea, Chairman of the Whittlesea Severance Association, Chairman of Mill Park Traders Association, Board Member of the Victorian Swimming Association Trading Company and representative on many school organisations.