reform the Pharmacy Location Rules to remove barriers to community access and competition between pharmacies, and to ensure they continue to support equitable and affordable access to medicines for all Australians, in accord with the National Medicines Policy; establish a working group with the Pharmacy Guild of Australia or other representative of Approved Pharmacists with the aim of reforming the Pharmacy Location Rules to ensure that they remain responsive to the evolving needs of the community while also supporting innovation through competition between pharmacies; and ensure that any reform of the Pharmacy Location Rules is subject to a suitable transition period. Government Response The Government notes this recommendation. The Pharmacy Location Rules aim to ensure a well distributed geographical spread of pharmacies across Australia. The Pharmacy Location Rules may be amended from time to time to provide greater flexibility to respond to community need for access to PBS medicines. The express written agreement of the Guild and the Government, as signatories to the 6CPA, is required for any such amendment. As part of the 2017-18 Budget measure Improving Access to Medicines support for – community pharmacies, the Government committed to ensuring the ongoing legislative basis for Pharmacy Location Rules. Legislation to amend the relevant sections of the National Health Act 1953, to remove the sunset clause that would have seen the Pharmacy Location Rules expire at the end of the 6CPA (30 June 2020), was passed by Parliament on 13 February 2018. Recommendation 6-2: Pharmacy Location Rules Concentration of — Ownership For any group of two or more pharmacies with overlapping ownership: the Australian Competition and Consumer Commission is to determine if the overlapping ownership of those pharmacies results in a substantial lessening of competition in a market for the provision of pharmacy services, relative to independent ownership; and if so, the Australian Competition and Consumer Commission can require that one or more of the pharmacies in the group be divested. For avoidance of doubt, a group of pharmacies would be considered to have an overlapping ownership if any individual or set of individuals have ownership of at least 20 per cent of the equity in each of the community pharmacies in that group. Government Response The Government notes this recommendation.
reform the Pharmacy Location Rules to remove barriers to community access and competition between pharmacies, and to ensure they continue to support equitable and affordable access to medicines for all Australians, in accord with the National Medicines Policy; establish a working group with the Pharmacy Guild of Australia or other representative of Approved Pharmacists with the aim of reforming the Pharmacy Location Rules to ensure that they remain responsive to the evolving needs of the community while also supporting innovation through competition between pharmacies; and ensure that any reform of the Pharmacy Location Rules is subject to a suitable transition period. Government Response The Government notes this recommendation. The Pharmacy Location Rules aim to ensure a well distributed geographical spread of pharmacies across Australia. The Pharmacy Location Rules may be amended from time to time to provide greater flexibility to respond to community need for access to PBS medicines. The express written agreement of the Guild and the Government, as signatories to the 6CPA, is required for any such amendment. As part of the 2017-18 Budget measure Improving Access to Medicines – support for community pharmacies, the Government committed to ensuring the ongoing legislative basis for Pharmacy Location Rules. Legislation to amend the relevant sections of the National Health Act 1953, to remove the sunset clause that would have seen the Pharmacy Location Rules expire at the end of the 6CPA (30 June 2020), was passed by Parliament on 13 February 2018. Recommendation 6-2: Pharmacy Location Rules — Concentration of Ownership For any group of two or more pharmacies with overlapping ownership: the Australian Competition and Consumer Commission is to determine if the overlapping ownership of those pharmacies results in a substantial lessening of competition in a market for the provision of pharmacy services, relative to independent ownership; and if so, the Australian Competition and Consumer Commission can require that one or more of the pharmacies in the group be divested. For avoidance of doubt, a group of pharmacies would be considered to have an overlapping ownership if any individual or set of individuals have ownership of at least 20 per cent of the equity in each of the community pharmacies in that group. Government Response The Government notes this recommendation.
Pharmacy-Review-Aus-Gov-Response-3-May-2018.docx