Since 1990, the remuneration received by pharmacists for the dispensing of drugs from the Pharmaceutical Benefits Scheme (PBS) and the regulation of the location of pharmacies have been governed by a number of agreements between the Australian government and the Pharmacy Guild of Australia (the Guild). Over time, these agreements have expanded their scope and now offer professional pharmacy programs and services. The signing of 7CPA demonstrates the government`s ongoing commitment to helping Australian patients through a community pharmacy. The agreements ensure the safety of the government and small pharmacies, which are responsible for effectively providing taxpayers with PBS-based drugs to the benefit of patients. With the municipality`s current pharmacy contract expiring on June 30, 2020, a new agreement is being negotiated. The Australian government pays licensed pharmacists for the provision of Pharmaceutical Benefit Scheme (PBS) drugs to patients. For Community pharmacists, the amount of remuneration is agreed between the government and the Pharmacy Guild of Australia (the Guild representing the majority of pharmacy owners) and set by pharmacy contracts for five consecutive years. The first Community Pharmacy Agreement (CPA) began in 1991 and focused on optimizing the distribution of pharmaceutical services across the country. At the time, there were concerns that there would be more pharmacies in the major cities, while regional and rural Australia did not occur. The agreement introduced a new compensation framework for pharmacies that supply PBS-based medicines and created incentives for pharmacies in rural and remote areas. Since 2005, the Australian government has funded a community service bond (ESC) funding pool.
The CSO Funding Pool ensures that all Australians have continuous access to all PBS drugs through community pharmacies. It provides financial support to pharmaceutical wholesalers and provides the entire supply of PBS drugs, regardless of where the pharmacy is being implemented and the relative delivery costs. Compensation for the distribution of subsidized pbs, pharmaceutical drug management programs and services in pharmacies is expected to be $18.3 billion over the five years of the agreement. Check out our compensation, program and wholesale information sheets. Any subsequent agreement has helped to maintain the principle of equitable distribution of pharmacies throughout the country through professional controls on the location rule, which stipulates that a pharmacy should not be open within 1.5 kilometres of an existing pharmacy. Negotiations on the seventh EU Pharmacy Agreement (7CPA) have begun in 2019. The government originally wanted to conclude negotiations by the end of 2019, but will continue until 2020. In addition to the Guild, the Pharmaceutical Society of Australia (which represents all pharmacists, not just pharmacy owners) will be co-signer of 7CPA for the first time.
The Ministry of Health also consulted with a number of other stakeholders in the consumer, pharmacy and health sectors on the policy and funding considerations of 7CPA, although these stakeholders did not sign the agreement.