Bill likely to see pharmacy ownership status quo remain

A Bill aimed at replacing Queensland’s Pharmacy Business Ownership Act 2001 will limit competition and make it harder for people to access discounted pharmacy services, according to a new RACGP submission.
 
However, a Committee report tabled in Parliament last week has recommended that the legislation pass, even though medical groups say the sector is in need of significant reform.
 
RACGP Queensland Chair Dr Cathryn Hester is a vocal opponent of the Bill and says the proposed regulations will continue to stifle competition, limit consumer choice, and slow improvements across the sector.
 
‘Review after review after review has recommended the removal of pharmacy location and ownership rules, but the current Pharmacy Business Ownership Bill will keep them in place,’ she said.
 
‘If the Government is serious about addressing high cost of living pressures across the state they will choose to put downward pressure on the cost of vital medicines through competition.
 
‘Not acting will force people to make heartbreaking choices between putting food on the table, filling up the car, or buying medicines for chronic conditions.’
 
Dr Hester says there has ‘never been a more important time’ to open up the sector to competition.
 
‘GPs and practice teams value the work of pharmacists and pharmacy teams immensely, and we want to make sure all patients have the best access to pharmacy services in all communities,’ she said.
 
‘Patients must come first. The current restrictions protect the vested interests of a few large corporate pharmacists who already own their patch, rather than improving access to medicines for those struggling to afford them.
 
‘The rules were established at a time when most pharmacies were small community pharmacies, but now most pharmacies are owned by large corporate entities.’
 
The Pharmacy Guild of Australia, a major donor to both political parties in the state, welcomed the Bill when it was first introduced last November, with Queensland Branch President Chris Owen describing it as the culmination of many years of legislative consultation with members and stakeholders.
 
‘Since 2018, when the Inquiry Report into the establishment of a pharmacy council and transfer of pharmacy ownership in Queensland was tabled, we have been working closely with the Queensland Government to ensure they remain committed in following this important legislation for pharmacy business ownership,’ he said at the time.
 
But Dr Hester believes the Bill must change in the interests of consumers, and referenced a 2023 Productivity Commission report that found the existing ownership rules have harmful consequences for consumers in terms of reduced access to medicines, reduced competition, and innovation.
 
‘In its evidence to the Parliamentary Inquiry, the Commission noted it was unaware of any evidence that the ownership rules improve outcomes for consumers relative to the ownership structures that exist in other parts of the primary health system,’ she said.
 
‘Despite this, the Government’s Bill will maintain the status quo, and that is not good enough.’
 
Meanwhile, AMA Queensland has suggested that the Bill will also hamper efforts to improve Indigenous outcomes, as it will block Aboriginal health services from owning and running their own pharmacies, despite pleas for the community-controlled sector to be exempt.
 
‘It is outrageous that the Queensland Government is completely disregarding its own Closing the Gap commitments with these unnecessary, anti-competitive regulations that only serve to entrench the power of existing pharmacy owners,’ AMA Queensland President and GP Dr Maria Boulton said.
 
‘This Bill should be rejected entirely. At the very least, Aboriginal health services should have been exempted.
 
‘We are bitterly disappointed that the Cost of Living and Economics Committee did not listen to the Queensland Aboriginal and Islander Health Council, the RACGP, the Productivity Commission and AMA Queensland.’
 
Dr Hester believes there is ‘no longer any logical reason’ to support the pharmacy sector being ‘protected and treated differently’. 
 
‘The pharmacy owner lobby group claims that consumers won’t feel comfortable receiving healthcare advice in other settings, like supermarkets,’ she said.
 
‘However, pharmacies operating in these settings are commonplace overseas where supermarket pharmacies allow people to drop off their prescriptions and do their shopping while they wait. The pharmacy owner lobby claim also belies the fact almost 40% of pharmacy revenue comes from retail products, non-prescription medicine sales and non-evidence-based products unrelated to health that no GP would recommend to any patient.
 
‘Enough is enough, we need change to put Aussie consumers first.’
 
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