Pharmacy Financial Survey · Hall & Partners | Open Mind MEL: +61 (0)3 9662 9200 SYD: +61 (0)2 9925...

Hall & Partners | Open Mind MEL: +61 (0)3 9662 9200 SYD: +61 (0)2 9925 7450 [email protected]

Pharmacy Financial Survey Research Report March 2017

Quantitative research report DRAFT

Table of Contents Executive summary ............................................................................................................................. 3

Background and methodology ............................................................................................ 3

Findings from the survey ...................................................................................................... 3

Research context and objectives ........................................................................................................ 7

Methodological approach and outcomes ............................................................................................. 9

Pharmacy engagement ........................................................................................................ 10

Pharmacy data collection .................................................................................................... 12

Data analysis and limitations of the data ...................................................................... 16

Pharmacist Profiles ........................................................................................................................... 17

Summary of Profiled Pharmacies .................................................................................... 17

PROFILE 1 – PhARIA 1 ........................................................................................................ 18

PROFILE 2 – PhARIA 1 ........................................................................................................ 19

PROFILE 3* – PhARIA 2 ..................................................................................................... 21

PROFILE 4* – PhARIA 3 ..................................................................................................... 22

PROFILE 5 – PhARIA 4 ....................................................................................................... 23

PROFILE 6 – PhARIA 4 ....................................................................................................... 24

PROFILE 7 – PhARIA 5 ........................................................................................................ 25

PROFILE 8 – PhARIA 5 ....................................................................................................... 26

Appendix A: Data tables .................................................................................................................... 27

Profile of participating pharmacies ................................................................................. 27

Store size and customer numbers ..................................................................................... 29

Staff levels ................................................................................................................................ 33

Business financials ................................................................................................................ 41

PBS data – Aggregate level detailed data from the DOH ......................................... 59

PBS data – Script type level detailed data from the DOH ........................................ 64

PBS discount data – Detailed data from the DOH ...................................................... 77

PBS discount data – Script type level detailed data from the DOH ...................... 78

Stated PBS data from survey ............................................................................................. 82

Appendix B: Self-completion questionnaire and contact materials .................................................... 86

3

16255 – Department of Health – Pharmacy Financial Survey

Executive summary Background and methodology

The Australian Government Department of Health is facilitating a review of pharmacy remuneration and regulation by an independent Review Panel, which will base its recommendations on an extensive review of pharmacy in Australia. Many voices and sources of data are part of this process, including a range of primary and secondary data sources, stakeholder and community consultation, public submissions, industry and publicly available data. On behalf of the Review Panel, the Department commissioned Hall & Partners Open Mind to gather and analyse financial data from community pharmacies to act as a further critical input into the review, supplementing existing data sources regarding remuneration for dispensing of medicines under the Pharmaceutical Benefits Scheme (PBS) and the delivery of professional services. Before gathering pharmacy data, a sample list of pharmacies was compiled from multiple sources, involving consultation with stakeholders such as The Pharmacy Guild and banner groups. Manual cleaning and de-duplication processes were applied to produce a final list of possible participating pharmacies. Pharmacies were contacted initially by letter from the Department of Health, to notify them of the survey and present the survey credentials. All listed pharmacies were then contacted by telephone to obtain the email address for an appropriate contact (such as an owner). A link to a standardised online self-completion form was then emailed. Follow-up reminders via email and telephone were undertaken to maximise response rates. Despite best efforts, the data collection stage faced unforeseen challenges and the final survey sample fell short of the target of n=300. Close to 150 pharmacies began the survey, however most of these part-completed the survey with a final sample of n=38 completed surveys. The data collection process is discussed in greater depth in the section Methodological Approach and Outcomes. The data from all pharmacies who provided responses are presented here.

Findings from the survey

Characteristics of participating pharmacies

The majority of participant pharmacists were independent community pharmacies, which were largely operated by their owner/s. Some of these had affiliations with a buying group, some were part of a banner group, several were discount or warehouse pharmacies, and others had no affiliations. The sample provides representation across all PhARIA classifications and types of pharmacy but the largest single group of participants were non-affiliated, independent, PhARIA 4-6 pharmacies. Hospital pharmacies not represented in this sample.

4


The pharmacies who provided their data were most commonly positioned along shopping strips or in isolated groups of a few shops and the majority were open for fewer than 50 hours per week. Very few offered their customers evening or night hours - Saturday was the most common time offered outside weekday retail hours. This sample captured a spread of pharmacy sizes from small pharmacies of up to 100m2, medium sized that are 101-200 m2 and some very large pharmacies at more than 200 m2. The pharmacies included here most commonly allocated 11-20% of floor space to the dispensary. There is however very wide variation when it comes to floor space allocation for OTC medicines and therapeutic goods, relative to other retail items. Space for private consultation by the pharmacist consistently occupied the smallest floor space of less than 10%. There was also wide variation in the size of each pharmacy’s annual customer base - with a tendency for PhARIA 4-6 pharmacies to have a smaller number of customers, than PhARIA 1-3 pharmacies. Around half of these pharmacies’ customers were seeking prescriptions only, while retail-only customer sales were slightly more common for PhARIA 4-6 pharmacies. Pharmacy ownership and staffing

The majority of participating pharmacies had one owner, this is especially so among PhARIA 4-6 pharmacies; while major city pharmacies had a greater tendency to have more than one owner. Most pharmacies had between 1 and 5 full-time staff and about two thirds also had part-time or casual staff to supplement this. There was a relationship between PhARIA location and staffing levels. The majority of these PhARIA 1 pharmacies had 4 or more full-time staff and at least 2 part-time or casual staff. While around half of the PhARIA 4-6 pharmacies had only 1 full-time staff member and a similar proportion have 0 casual or part-time staff. Owner salaries varied widely from less than $40,000, to a significant minority with salaries more than $100,000. This variation appears related to PhARIA with owners' salaries for pharmacies in major cities mostly being a lot higher than those outside metropolitan areas. Pharmacy revenue and profit

Annual sales levels in excess of $1,000,000 was more common for city pharmacies than their regional, rural or remote counterparts in this survey. Though some PhARIA 4-6 pharmacies did supplement their sales with income from other sources moving them up past $1M total revenue. Among those pharmacies providing their revenue and expense data, PhARIA 1 pharmacies tended to achieve greater profit than PhARIA 4-5 pharmacies - virtually no participating rural or remote pharmacies reported a profit in excess of $200,000, while half of major city pharmacies achieved at least this level of profit. Payments and allowances

Overall, PhARIA 1, and to a lesser extent PhARIA 2-3 pharmacies, offered and received a higher level of remuneration for a wider range of government supported services than do those in rural or

5


remote locations. Of all the government supported services, the one that contributes the most in terms of remuneration received is Dose Administration Aids (among those that offer the service). An array of government allowances and support payments were claimed by pharmacies last financial year, the most common of which was the Rural Pharmacy Maintenance Allowance, which most PhARIA 4-6 and some PhARIA 2-3 pharmacies claimed. The majority of pharmacies in major cities claimed no allowances or payments. Overall, few pharmacies claimed to be involved in the E-Health Programme. Nearly all PhARIA 4-6 pharmacies received more than $15,000 from support payments and allowances. For the majority of claimants, the contribution of the RPMA is between 1-10% of annual revenue and for most this means they depend on the allowance, to a greater or lesser degree. Servicing of nursing homes

A third of these pharmacies provided pharmaceutical services to nursing homes and this was more prevalent in PhARIA 2-3 pharmacies and to a lesser extent PhARIA 4-6 pharmacies. The actual number of beds serviced per pharmacy tended to be the smallest for regional, rural and remote pharmacies. There was a huge range in the per bed rate for nursing home services, ranging from $1 to more than $20. Additional fee-based pharmacy services

Across the board, dose administration aids, provision of absence from work certificates, opioid dependence treatments and staged supply were the most common fee-based services offered by these pharmacies. PhARIA 1 pharmacies offer on average 6 of the services listed, while pharmacies outside major cities offer an average of 4. Specifically, pharmacies in cities more commonly offered compounded medicines, diabetes management services and weight management and nutrition services. More than half of these pharmacies did not keep revenue records for revenue generated by fee-based services they provided. Pharmacy costs and expenses

In line with overall revenue and expenditure patterns, PhARIA 1 pharmacies had the greatest level of expenditure, particularly on cost of goods sold. Rents differ vastly depending on the pharmacy location - most pharmacies in major cities spend more than $40K a year in rent. Information technology was an investment for all pharmacies regardless of location. PhARIA 1-3 pharmacies were more likely to be investing in marketing and advertising than PhARIA 4-6 pharmacies. A minority of pharmacies were spending more than $5000 per annum on training and development of staff. PhARIA 4-6 pharmacies have a relatively low level of outlay on bookkeeping and accounting. For most pharmacies debt servicing represents less than 5% of revenue, although it was a significantly greater expense for a few of these pharmacies - and this seems to be irrespective of PhARIA.

6


Wholesaler and manufacturer relationships

Nearly all of the major city pharmacies dealt with 2 or more suppliers, however more than half PhARIA 4-6 pharmacies dealt only with a single supplier. Some PhARIA 4-6 pharmacies, however, did appear to receive higher discounts (up to 8% or more) than their city counterparts, while most PhARIA 2-3 pharmacies received midrange discounts up to 4%. Nearly all pharmacies participating in the survey agreed that they received less in discounts or rebates from suppliers and wholesalers in 2015/16 than for the financial year before. Pharmaceutical benefits scheme financials

The analysis of PBS data held by the Department of Health was carried out only for those 28 pharmacies that gave permission for their PBS data to be linked to survey responses. These pharmacies will be noted below as ‘participating pharmacies’ or just ‘pharmacies’. Over the 2015 -16 financial year, across all the participating pharmacies, the lowest number of scripts dispensed was 168, whilst the highest was 128,476. There is a relationship between PhARIA bands and the average number of PBS scripts dispensed – the number declines the further out from a major city the pharmacy is. Average number of scripts dispensed was; 143,911 by PhARIA 1 pharmacies; 34,233 by PhARIA 2-3; 17,983 by PhARIA 4-6. Overall the number of scripts were skewed towards generic medicines - 519,202 generic medicine scripts out of 818,122 total PBS scripts. Amongst pharmacies based outside PhARIA 1, the PBS scripts dispensed were more skewed towards Concessional scripts (74% vs 68%) compared to those based within PhARIA 1 - perhaps reflective of population characteristics outside major cities. Pharmacies based within PhARIA 2–6 dispensed more scripts that cost above the co-pay amount and therefore attracted a subsidy (80% vs 74%). Overall, Closing the Gap (CTG) scripts accounted for 5% of the total PBS scripts, mainly dispensed by pharmacies based outside PhARIA 1. Pharmacies in PhARIA 2–6 on average dispensed 3 times as many CTG scripts as pharmacies in PhARIA 1. Pharmacies in PhARIA 4 - 6 were more reliant on PBS Benefits from the Government compared to pharmacies in other PhARIA codes. When comparing the total benefit amount received from government against total revenue, the benefit amount accounted for 46% (vs 41%) in case of pharmacies in PhARIA 4-6. Clearly rural and remote pharmacies are more dependent on this support than their regional and city counterparts.

7


Research context and objectives Pharmacy is a crucial part of health care in Australia, and pharmacy care and medicines are currently delivered to the Australian public by community pharmacies, under the Sixth Community Pharmacy Agreement (6CPA) between the Australian Government and the Pharmacy Guild of Australia. The Australian Government Department of Health is facilitating the review of this agreement, which covers pharmacy remuneration and regulation, by an independent Review Panel. The focus of the Review is to ensure consumers have reliable and affordable access to medicines through community pharmacies into the future. The Review Panel will provide recommendations to Government on remuneration, regulation, and other specific arrangements relating to the dispensing and supply of medicines provided under the Pharmaceutical Benefits Scheme as well as the provision of other pharmacy services and programs. Panel recommendations will be based on an extensive review of pharmacy in Australia, including factors contributing to patient health outcomes and the use of medicines. Many voices are being considered in this process, and the Review Panel, is drawing on a range of primary and secondary data sources as an input into the review, including broad stakeholder and community consultation, publicly available data and industry data. On behalf of the Review Panel, the Department sought to gather and analyse financial data from community pharmacies to act as a further critical input into the review. Specifically, the Review Panel was interested in better understanding the level and structure of remuneration for community pharmacy for dispensing of medicines under the Pharmaceutical Benefits Scheme (PBS) and the delivery of professional services. There are a number of sources of industry data that provide some insight into the financial position of the pharmacy sector. Aside from market data available through IBISWorld on the pharmacy sector as a whole, the Department of Health holds some information on pharmacy characteristics and partial information on sales relating to dispensing of medicines under the PBS, and the Pharmacy Guild of Australia collects financial information from Guild members. Even taken together, these provide an incomplete picture of pharmacy viability. It is difficult to determine from these sources the role that public sources of remuneration plays in pharmacy viability across the whole community pharmacy sector. Further, because most of this information is available in the aggregate and not in raw form, it is not possible to determine the relative financial positions of different types of pharmacies in different locations, nor test hypotheses about financial viability, issues or stressors arising from earlier phases of the Review. The Department and Review Panel determined that there was no source of information available which gave the complete information that the Department and Review Panel seek.

8


Based on these considerations, the Review Panel therefore sought: • an independent consultant who could work with the Review Panel to develop a data

collection instrument that captured quantitative financial data in a format that will be of use to the Panel in its Review, representing the spread of pharmacies across Australia, including across different remoteness classifications

• Accurate financial data to be collected from a sample of community pharmacies to enable conclusions to be drawn about the financial position of pharmacies in different locations

• Extract and clearly present insights that will be relevant to issues being considered by the Review Panel relating to pharmacy regulation and remuneration, with respect to different types of pharmacies and pharmacy financial viability, issues or stressors.

Hall & Partners Open Mind was engaged to undertake this work. The approach taken and its outcomes are discussed in the following section.

9


Methodological approach and outcomes This study employed an online survey design preceded by a significant pharmacy engagement phase and was developed based on a number of considerations and potential risks:

1. The need to ensure a broad representative range of community pharmacies would be given the opportunity to participate, with a particular focus on maintaining goodwill and ensuring buy-in and equitability of access;

2. The risks involved due to different/incomplete contact details available for all pharmacies and the risks associated with surveying pharmacies at a busy time of year;

3. The need for the survey instrument to collect accurate and useful data while minimising respondent burden and input errors;

4. Following up with pharmacies to maximise response rates and minimise non-response error; 5. Encouraging participation by ensuring the exercise would be mutually beneficial; 6. Ensuring that the research could balance the needs for depth and clarity of analysis.

The final research design aimed to mitigate the risks and difficulties listed above through the following implementation approach.

10


Despite best efforts, the fieldwork experienced some challenges and the final survey sample fell short of expectations. The remainder of this section of the report discusses the rationale behind the approach taken and the challenges faced in implementation and sample achievement.

Pharmacy engagement

It was crucial for the success of the project to engage pharmacists personally, communicating the need for, and value of participating in, the research. Prior work on a quantitative survey of pharmacists to gain feedback on issues raised in the Review’s Discussion Paper (primarily through analysis of the responses to open-ended questions) revealed a high level of engagement and interest that pharmacists from all types of pharmacies, and in particular the smaller independent pharmacies, have in the Review process and the strong desire to have their circumstances understood and taken into account in the Review. The consultation process to date had worked hard to ensure all pharmacists would be able to contribute and it was essential that any remaining consultation mechanisms also afforded the opportunity for broad consultation, recognising however that many pharmacists might have already contributed to the review process via other mechanisms. In order to obtain accurate pictures of pharmacies in different locations, and maintain this goodwill, it was decided that effort should be expended to ensure a broad spread of community pharmacies were given the opportunity to participate in this process, including difficult to reach pharmacies in remote locations, rather than just those who might be easier to contact or who may already be quite adept at using consultation avenues available to share their experiences. For this reason, the research design incorporated a significant engagement phase involving a range of contact and follow-up methods through which every possible effort was made to gain details for, make contact with and present the survey credentials to a broad spread of the community pharmacies within each PhARIA remoteness classification across Australia. The first challenge in engaging pharmacies was obtaining a comprehensive contact list for community pharmacies in Australia. No complete contact list exists, with various organisations holding partial contact details, e.g. contacts for only a group of member pharmacies (The Pharmacy Guild and specific banner groups), only pharmacy names and physical addresses (Department of Health), or a mix of pharmacy premises/proprietor’s phone numbers based on ABN (Dunn & Bradstreet and the Yellow Pages). The lists that were able to be obtained from the Department of Health and Dunn & Bradstreet were incomplete for the purposes of surveying, with missing or out-of-date data (e.g. pharmacies having changed names, ceased trading or moved to a different location) and required a significant amount of checking, deduplication and manual supplementation from an online search of the Yellow Pages to produce a final contact list containing pharmacy name, pharmacy location and phone number, and, where possible, contact name for a manager or owner of the pharmacy.

11


The Department provided a list of the 5,542 community pharmacies with approval numbers for PBS dispensing, their location and PhARIA classification. A sample frame of around 1,264 pharmacies was randomly selected from the total population (excluding dispensing physicians and hospital pharmacies) and stratified by PhARIA band to be representative of the split in the total pharmacy population; and pharmacies within PhARIA 1, to be representative of state, as per the table below. It was anticipated that, assuming a 20% response rate (which is often achieved from engaged audiences in business surveys), a final maximum sample size of n=300 should be aimed for. Of course, it was understood that many factors might make a 20% response rate difficult to achieve, particularly in the pre-Christmas period of the year, when the data was required to be collected.

PhARIA No. of Pharmacies % within band Sample Frame

1

4620 84% 600 NSW 33% 198

VIC 24% 144

QLD 20% 120

WA 11% 66

SA 8% 48

TAS 3% 18

2 185 3% 150 3 342 6% 150 4 137 2% 137 5 149 3% 149 6 78 1% 78

TOTAL 5511 100% 1264 The nature of pharmacy ownership means that we could not be guaranteed to reach pharmacy owners at each particular pharmacy, and the person available at the time of contact might not be the best person to provide the survey data required at that time. This meant that selecting one invitation approach (e.g. phone, email, mail), or a phone or mail data collection methodology would risk some pharmacies being less likely or able to participate. A staged effort to contact and follow-up with pharmacies in the sample frame using a phone-to-email recruitment strategy was determined to be the optimal approach for giving all pharmacies on the sample frame an equitable opportunity to participate. This meant that all pharmacies on the sample frame were phoned and informed about the survey and asked if they wished to provide a contact email address, to which further information and the link to the online survey were sent. To inform participants about the research and encourage participation, the Department also sent out Primary Approach Letters to pharmacies from Professor King and promoted the survey on the Pharmacy Review webpage and via a number of updates. This promotion also encouraged

12


interested pharmacies to opt-in to participating in the survey. Forty-nine (49) pharmacies not on the original sample frame opted in and were sent survey invitations via email. Throughout the fieldwork period, two follow-up reminders to non-responding pharmacies were sent via email in the first instance, and then via phone to make every effort to achieve a reasonable sample size. It was originally planned that pharmacy engagement in the survey would be boosted by obtaining cooperation from the Pharmacy Guild of Australia and specific pharmacy banner groups, which could encourage their members to complete the survey. In practice, the Department found it difficult to engage with these organisations and to garner support for the survey – in fact, a number of these groups specifically encouraged their members not to complete the survey – which was detrimental to the achievement of the desired response rate. These organisations were concerned that information pharmacies provided in the survey might feed into Review recommendations that might not be in the best interests of their members. Pharmacies contacted by phone were happy to pass on their email address to receive the survey invitation, but some asked whether or not the Pharmacy Guild was supporting the survey, and many others stated that they would either seek the advice of the Guild or their banner group, or wait to see these organisations publicly direct members to participate, before agreeing to complete the survey. Departmental liaison with the Pharmacy Guild following an alert provided to their members cautioning them about the survey resulted in the Guild agreeing not to oppose the survey, but not to support it or encourage participation either.

Pharmacy data collection

There was a need to ensure a consistent approach to the collation of the pharmacy financial data to ensure data quality and comparability. Rating scales and ranges in particular are subject to mode effects, meaning people tend to respond differently depending on whether they answer these questions online or over the phone. Phone surveys are very costly and, in addition to being cost effective to program and deliver, online forms offer the further advantage of a private and more confidential platform to input personal or commercially sensitive data. They can also enable completion over multiple sittings, allowing busy professionals the option to complete at any time that is convenient and to exit until later if interrupted or information needs to be obtained in order to answer a question. For all these reasons the survey was fielded online. Survey programming and hosting was undertaken by accredited fieldwork provider PureProfile, which partnered with Canvas U to conduct all telephone contacts. Both companies are accredited to the quality standard for market research which holds them to the highest standards and they were remunerated on a per-contact, rather than a per-complete, basis, which removed any incentive for the fieldwork companies to in any way coerce pharmacies to participate, however unlikely this might be.

13


All contacts with pharmacies was made using phone scripts and invitation text drafted by HPOM in conjunction with the Department and approved for use by the Statistical Clearing House. For transparency, copies of the approach letter, phone script and email invitation were shared with the Pharmacy Guild during the fieldwork period and are included in Appendix B. Sample size

The Department required surveying of pharmacies within each PhARIA classification band to be able to create a picture of the finances of pharmacies within each band. The research design aimed for 30 completed surveys within each of Bands 2 to 6 and a total of 150 completed surveys from pharmacies within Band 1 to yield a total sample of 300 pharmacies across all six bands. To achieve this, almost all of the pharmacies within Bands 4, 5 and 6 were invited to participate in the survey, and around 150 randomly selected pharmacies in each of Bands 2 and 3. Within Band 1, a randomly selected sample frame of around 600 pharmacies, stratified by State, to be representative of the State and Territory breakdown of Band 1 pharmacies was invited to participate. Of the total of 1,264 pharmacies phoned to participate in the research, 22 numbers called were incorrect or disconnected and 86 resulted in no answer. Of those able to be contacted, 922 provided an email address for the survey link and 820 emails could be confirmed as having been successfully delivered. Unfortunately, only 144 pharmacies began the survey and 38 completed the survey to the final question. Many of those who began the survey completed some questions, for example the profiling section, and not others. Field period

The survey was initially intended to be in field from 18 November to 8 December, which is close to Christmas and was expected to have a potentially negative effect on response rates. Despite best efforts, the survey launch was delayed by a number of factors, including a longer than expected time taken for the Department to provide a list of pharmacies, for the Review Panel to approve the survey questions and for the Statistical Clearing House to approve the final materials for release. The survey soft launched on 6 December with a full launch on 7 December. Concern expressed by the Pharmacy Guild about how the survey was being presented to pharmacies resulted in the Department pausing phone calls to pharmacies on 8 December to review the phone script. Approval was given to proceed with calling pharmacies using the original phone script the following day but advising phone staff to refer any pharmacists querying the Pharmacy Guild’s position on the survey to local Guild branches. Given the proximity to Christmas, the decision was taken to extend the fieldwork period over the Christmas break and until the end of January. Incentives

Incentivising respondents in some way to participate will represent an important step towards maximising response rates for the survey, but deciding on an appropriate form and level of incentive

14


is often difficult. Health professionals, because of the heavy demands on their time, together with relatively high levels of remuneration in the sector, tend to be paid some of the largest incentives to take part in market research. However, such payments tend to add up excessively when dealing with quantitative sample sizes. It was decided that, given the importance of the Review recommendations to the pharmacy sector, that there would be enough intrinsic value in the survey exercise and its potential outcome for the financial sustainability of individual pharmacies to encourage pharmacies to ensure their situation and the issues they are facing were represented. The primary approach letter to pharmacies, as well as the survey invitation and reminders were worded so as to stimulate personal and intrinsic motivations to participate. Survey design

The pharmacy sector is, like all types of health professionals, highly time-pressured, and, particularly at the smaller practice end of the spectrum, constrained in terms of the resources available to it. Consequently, it was important to prioritise the Review Panel’s information needs to ensure that the questionnaire was highly focused on the information that was actually needed, and did not take up more of participants’ time than is necessary. For this reason, the survey questionnaire was designed to allow respondents to look through the survey without inputting data to see what information would be required, ahead of completion, as well as offering the opportunity to dip in and out in stages, and thereby arrange it around their daily workplace commitments. Of course, it was recognised that this approach results in some attrition with people never returning to complete the survey. For this reason, personal phone calls were made to all of those who began but didn’t complete the survey to encourage them to respond. Most of these cited an intention to complete the survey, but a lack of time. Some remained concerned about the Pharmacy Guild’s lack of support for the survey. In order to minimise respondent burden, the survey design aimed to utilise as many closed range response options and limit open numerical fields as far as possible to minimise input errors and outliers that would reduce the reliability of findings. We also aimed to limit the use of questions requiring participants to make a calculation where we could calculate this figure based on other survey information provided and where we already could obtain, with permission, the accurate information available from the PBS database (e.g. PBS sales for different patient types or remuneration from some government allowances). Given many pharmacists familiarity with the Pharmacy Guild’s Guild Digest Survey, but the Department’s inability to gain access to this data from the Guild, it was considered important to mirror standard formats and questions used in the Guild Digest survey, where possible, as these would be familiar to Guild members and reduce burden in completion. A concern of the Pharmacy Guild was that this survey was increasing the burden on member pharmacists by asking them to replicate data already provided to the Guild. This was unfortunately unavoidable, given the Guild’s reluctance to provide this Guild Digest data to the Review Panel, the generalised nature of the Guild

15


Digest report prepared from that data, and the Panel’s interest in collecting additional information beyond that canvassed in the Guild Digest Survey. The survey questionnaire was developed in close consultation with the Department and the Review Panel, and was built around the following measures of interest to the Panel:

1. The financial remuneration, costs and cost drivers for community pharmacy associated with dispensing, such as:

a. Cost of Goods Sold b. Wages and staff costs; c. Rent and occupancy costs, d. Computers, technology, and information system costs; e. Advertising, promotion and marketing group fees; f. Staffing levels; g. Training and professional development expenditure; h. Prescription volumes and expenditure (by patient category, including under co-

payment); i. Percentage of generic dispensing; j. Financial remuneration associated with the provision of Government-supported

pharmacy services, such as (but not limited to) Home Medicine Reviews; k. Remuneration from Government payments and allowances, such as (but not limited

to) the Rural and Remote Allowance; l. Revenue generated from fee-for-service professional services provided in pharmacy

(not directly remunerated through Government); m. Annual revenue or turnover; and n. Profit metric.

2. The proportion of revenue generated from PBS and Repatriation Schedule Pharmaceutical Benefits Scheme prescriptions in comparison to front-of-store sales (over-the-counter and retail items);

3. Wholesaler surcharges, discounts and rebates provided to community pharmacy; and 4. Pharmacy demographic data, such as (but not limited to) pharmacy location (urban, metro,

regional and rural/remote), pharmacy model (independent operators, large and small banner groups and friendly societies), store size and trading hours.

The survey questions are included in Appendix B. Participants were also asked if they would give permission for their pharmacy’s PBS data held by the Department to be appended to the final data file to assist with additional data analysis. The process of appending this data was managed by HPOM using a procedure that protected participants’ identity and confidentiality at all times. At the conclusion of the fieldwork period and the appending of this data, the data file was de-identified, which is a non-reversible process. Only de-identified data was shared with the Department and used in this report. All care was taken to ensure that individual

16


pharmacies discussed in this report are not able to be identified through the information presented, for example, by not including raw values provided. Statistical Clearing House approval

The business-based sample for the research made it necessary to obtain approval from the Statistical Clearance House (SCH) prior to commencing fieldwork. Draft materials for use in the research were submitted to the SCH after Departmental approval. Edits were made based on SCH feedback, including the request for all individual questions to be able to be skipped if the participant wished (most research surveys require participants to enter a response – even if it is ‘Don’t Know’ - before moving on to the next question). Final materials were cleared by the SCH for use prior to the launch of the survey. Privacy and confidentiality

All survey data and any contact data transmitted between parties was treated as sensitive information, and was protected and handled in compliance with our agency’s stringent security processes and the national privacy principles.

Data analysis and limitations of the data

The small sample size achieved, and the patchy nature of information provided by those that only completed part of the survey means the data set cannot be taken to be a rigorous, representative sample of pharmacies, though the final sample included a good spread of pharmacies across PhARIA bands. The data set was cleaned and outliers beyond the realms of probability were excluded. There were some cases in which data provided in one section (for example total revenue) does not match figures calculated from responses to other questions, though this data remains in the data set as it is impossible to know where specific errors may lie. Comparing average responses across the sample with those reported in the most recent Guild Digest reveals similarities, so the data at an aggregate level is reasonably sound. However, given the small sample size and the incomplete nature of some cases, the data should be treated with caution. For these reasons, the decision was taken to report a sample of the responses to the survey in a case study format to provide a snapshot of what the financial situation of pharmacies in each of the PhARIA bands looks like. Care has been taken to ensure that pharmacies are not able to be identified from the data discussed in the eight case studies provided. Data tables providing the frequency counts against all survey questions are provided in Appendix A.

17


Pharmacist Profiles Summary of Profiled Pharmacies

In this section of the report, a selection of pharmacies participating in the survey are profiled to build an understanding of the financial and other characteristics of particular pharmacy types. The figures reported are rounded or provided in ranges, to protect the confidentiality of the pharmacies. Profile descriptions are based on all responses gathered in the survey for each pharmacy, as well as any PBS data held by the Department, where permission to link this data was given. While there is some consistency to the style of the descriptions that follow, some pharmacy records were incomplete, which meant that the questions on which the descriptions are based may vary between profiles. The table below summarises the pharmacies profiled.

Profile No. PhARIA Type of Pharmacy Location State

1 1 Independent community pharmacy not affiliated with any group

Non regional shopping centre NSW

2 1 Independent community pharmacy affiliated with a buying group

Strip shopping centre VIC

3 2 Discount or warehouse style pharmacy

Non regional shopping centre VIC

4 3 Community pharmacy affiliated with banner group

Isolated (1-4 shops together) SA


Strip shopping centre QLD

6 4 Independent community pharmacy affiliated with a buying group

Isolated (1-4 shops together) NSW


Regional shopping centre QLD


Strip shopping centre TAS

18


• Independent owner operated pharmacy

• Inner-city shopping centre in Sydney

• Open 70-75 hours

• 100m2

• 11 staff, 4FT, 7PT

• Revenue $2M-$2.5M

• PBS benefit amount approximately a third of revenue

• Close to 30K PBS scripts per annum

• Equal balance of generic and branded PBS scripts

• 4 in 10 PBS scripts do not attract subsidy as cost is below co-pay

• Broad ranging service offer and a focus on dispensing branded and private prescriptions, reflected in space allocation, staff and sales

KEY FACTS

PROFILE 1 – PhARIA 1

Pharmacy 1 is an independent pharmacy with no affiliation with buying or banner groups, located in an inner city shopping centre. An owner-operated pharmacy, Pharmacy 1 has 2 owners, 1 of whom works part-time in the pharmacy. Pharmacy staffing

All in all Pharmacy 1 employs 4 full-time and 7 part-time staff. The full-time staff include 2 pharmacists and 2 dispensary assistants. Part-time staff include the owner, as well as 3 pharmacy assistants and 3 other qualified staff. Pharmacy characteristics

The pharmacy itself is small-medium sized (around 100 square meters); just over half of which is devoted to dispensing prescription medications or private space for patient consultation. Pharmacy customer service

Pharmacy 1 provides extended hours services - early in the morning and on weekends and public holidays. It serves between 40,000 and 50,000 customers per annum the vast majority of whom are seeking prescription medicines. Pharmacy 1 offers many fee-based services, including absence from work certificates, compounded medicines, diabetes management services and opioid dependence treatments and syringe programs. Pharmacy financials

Total revenue in the last year was $2M-$2.5M, with just under a third attributed to private scripts and slightly more from PBS benefit payments. A small proportion of revenue came from government-supported services. Pharmacy 1 does not claim or receive remuneration from any payments or allowances. The provision of fee-based services to customers, however, does make a noticeable contribution to Pharmacy 1’s bottom line. Pharmacy 1 reports a profit of around 5% of its revenue. Significant costs include COGS, staff costs and rent. Debt servicing is an insignificant cost for Pharmacy 1. This pharmacy deals with 2 wholesalers but does not receive a discount. The PBS scripts dispensed by this pharmacy are evenly split between concessional and general scripts and overall very few are safety net scripts. Branded scripts account for just as many PBS scripts as generics in this pharmacy. CTG scripts are offered, and for a few customers, a discount on the co-pay is provided. Notably, more than 4 in 10 PBS scripts this pharmacy dispenses cost below the co-pay and

19


• Independent owner-operated pharmacy

• Strip shopping centre in inner Melbourne suburb


• 50m2

• 1 FT staff

• Revenue reported at $1M-$1.25M

• Just under 15K PBS scripts per year

• Two thirds of PBS scripts are concessional

• 1 in 5 PBS scripts are safety net scripts

• Small dispensary-oriented pharmacy, also servicing nursing homes

KEY FACTS

therefore do not attract a subsidy.


Pharmacy 2 is an independent pharmacy that has affiliations with a buying group. It is located along an inner suburban strip shopping. Pharmacy 2 has a single owner who also works in and runs the pharmacy. Pharmacy staffing

The sole staff member is the owner, who works in the pharmacy fulltime and spends the greatest amount of hours dispensing prescriptions. Pharmacy characteristics

The pharmacy itself is small (less than 50 square meters); with around a third of this space dedicated to the dispensary. Pharmacy customer service

Pharmacy 2 operates fairly standard hours and does open on a Saturday. It serves between 15,000 and 20,000 customers per annum and almost all of these customers purchased prescription medicines and, to a much lesser extent, supplementary purchases to prescription medicines. Pharmacy 2 offers very few fee-based services, including health aids and equipment provision and DAAs. This pharmacy also services around 100 nursing home beds. Pharmacy financials

Total revenue for Pharmacy 2 in the last year was between $1M and $1.25M and private scripts are a very small component of this. Virtually no revenue was generated from either offering government-supported pharmacy services, such as Medscheck, and or fee-based services to customers. Pharmacy 2 received less than $1K relating to the E-Health Program. This pharmacy reports a profit of just under 10% of its revenue. By far the most significant costs to this pharmacy is cost of goods sold, while debt servicing is around 5% of revenue. Pharmacy 2 deals with 3 wholesalers from which it receives a discount of up to 1-2%. This pharmacy has a heavy focus on dispensing concessional scripts, particularly those that are dispensed after the safety net has been reached. Over two thirds of PBS scripts dispensed by this pharmacy are for generic not branded medicines. Pharmacy 2 fills only handful of CTG scripts each year and offers few $1 discounted scripts.

20


The total revenue reported by this pharmacy is below the benefit amount paid by the Government for PBS scripts over the same time period, suggesting under reporting of this pharmacy’s revenue.

21


• Discount or warehouse style pharmacy

• Shopping centre in regional Victorian centre


• 250m2 +

• 11 staff, 7FT, 4PT

• Revenue $2M-$2.5M

• PBS scripts split evenly between general and concessional scripts

• Vast majority of PBS scripts are generics

• Focus on non-prescription treatments and retail products

KEY FACTS

PROFILE 3* – PhARIA 2

Pharmacy 3 is a discount or warehouse pharmacy located in a local shopping mall in a regional town. Pharmacy 3 has one owner, who works in the pharmacy most of the time. Pharmacy staffing

The majority of staff in Pharmacy 3 are not involved with dispensing medicines. There are 8 pharmacy assistants - half work full-time. Other staff include 1 full-time manager/pharmacist in charge and 1 full-time dispensary assistant, and the owner. Pharmacy characteristics

The pharmacy is large (around 250 square meters); under a quarter of which is reserved for dispensing prescription medications or consulting with patients. The vast majority of space is devoted to OTC and off the shelf treatments and retail. Pharmacy customer service

Pharmacy 3 is open around 50 hours a week and while it does open on Saturdays, it offers no other extended hours. It serves between 30,000 and 40,000 customers per annum and between 40-50% of these customers make retail purchases not related to prescriptions. Pharmacy 3 offers some fee-based services, including bone density testing, DAAs, self-test screenings and sleep apnoea services. Records of the revenue contribution of these services are not kept. Pharmacy financials

Total revenue in the last year was between $2M and $2.5M – both private scripts and government-supported pharmacy services make a very small revenue contribution. Pharmacy 3 claimed between $10K and $20K under 2 of the rural allowances relating to rural interns and rural pharmacy liaison officers. Pharmacy 3 reports a profit of around 6% of its revenue. The most significant cost is COGS, thereafter staff costs and debt servicing (just over 10%). Pharmacy 3 deals with 5 wholesalers who offer discounts of 3-4%. Most PBS medicines dispensed by this pharmacy are ordinary, as opposed to safety net, scripts. Generic medicines account for 9 in 10 PBS medicines dispensed by this pharmacy. *This pharmacy did not provide permission for PBS data held by the Department to be matched with their survey responses. Consequently results relating to PBS scripts cannot be directly compared.

22


• Banner group community pharmacy

• Isolated cluster of shops in regional South Australian centre


• 250m2 +

• 11 staff, 3 FT, 8 PT

• Revenue $4.5M-$5M

• High proportion of branded PBS medicines dispensed

• Vast majority of PBS medicines require government subsidy

• High volume of customers for both scripts and retail sales

KEY FACTS

PROFILE 4* – PhARIA 3

Pharmacy 4 is a community pharmacy that is affiliated with a banner group. Located in a small cluster of 1-4 shops in a town in SA, Pharmacy 4 has two owners and is owner operated. Pharmacy staffing

There are 2 full-time staff, including 1 full-time manager and an owner full-time. This is supplemented by 3 part-time dispensary assistants, 3 part-time pharmacy assistants and 2 other qualified staff working part-time. Pharmacy characteristics

Pharmacy 4 is large (around 250 square meters); with less than 20% of the floor space is used for dispensing prescription medications or patient consultation. The vast majority of space is devoted to OTC and off the shelf treatments and retail. Pharmacy customer service

Pharmacy 4 is open around 50 hours a week and it does open on Saturdays. It serves more than 100,000 customers per annum– a third of these customer visits involved retail sales not related to prescriptions. Pharmacy 4 offers a few fee-based services, including bone density testing, DAAs, opioid dependency programs and weight management programs. Pharmacy 4 also services more than 150 nursing home beds. Pharmacy financials

Total revenue in the last year was between $4.5M and $5M with private scripts contributing around 5% of revenue and government-supported pharmacy services making a 2-3% contribution. Fee-based services contribute little to revenue. Pharmacy 4 claimed between $10K and $20K under 2 of the rural allowances relating to interns and QUMAX. Pharmacy 4 reports a profit of around 5% of its revenue. The most significant costs are COGS and staff costs. Pharmacy 4 deals with 3 wholesalers who offer discounts of up to 1%. The cost of 9 in 10 of the PBS scripts dispensed by this pharmacy are above the co-payment amount and are therefore subsidised by the government. Pharmacy 4 tends to dispense branded and generic medicines in equal measure. *This pharmacy did not provide permission for PBS data held by the Department to be matched with their survey responses. Consequently results relating to PBS scripts cannot be directly compared.

23


• Independent owner-operated community pharmacy

• Strip of shops in small Queensland town

• Open 50 hours

• 50m2


• Revenue $400K-$500K

• 13K-14K PBS scripts filled per annum

• PBS benefit revenue accounts for more than three quarters of revenue

• Vast majority of PBS scripts are concessional

• More than 1 in 15 PBS scripts are CTG

• Focus on providing basic pharmacy offering with a reliance on Rural Pharmacy Maintenance Allowance

KEY FACTS


Pharmacy 5 is a small community pharmacy that is not affiliated with a buying or banner group. Located along a strip shopping centre in a small village, this pharmacy has one owner who operates the pharmacy. Pharmacy staffing

The owner works full-time in Pharmacy 5, and there are 2 part-time supporting staff – 1 qualified staff member and a pharmacy assistant. Pharmacy characteristics

Pharmacy 5 is small (around 50 square meters); and the vast majority of floor space is devoted to non-prescription therapeutic goods and, to a lesser extent, general retail. Pharmacy customer service

Open for around 50 hours a week, Pharmacy 5 offers some extended hours in the morning, Saturdays and public holidays. It serves around 5,000 customers per annum, most of whom purchase only prescriptions; though customers where prescriptions and non-prescription purchases are combined, and retail purchases, do account for a significant minority of customer transactions. Pharmacy 5 offers opioid dependency programs and does not service nursing home beds. Pharmacy financials

Total revenue in the last year was between $400K and $500K, and private scripts contribute less than 5% of revenue. Pharmacy 5 did not receive remuneration for any government supported services, however it did receive the Rural Pharmacy Maintenance Allowance, to the value of around 5% of revenue – an allowance on which this pharmacy is reliant. Fee-based services contribute very little to revenue. Pharmacy 5 reports a profit of around 15% of its revenue. The most significant costs borne by this pharmacy are COGS, while debt servicing represents less than 5% of revenue. Pharmacy 5 deals with 2 wholesalers who offer discounts of up to 1-2%. This pharmacy has a heavy reliance (8 in 10 revenue dollars) on the PBS benefit amount paid by government. Pharmacy 5’s main business is the dispensing of concessional scripts and most PBS scripts dispensed are generic medicines. For its size, this pharmacy dispenses a significant number of CTG PBS scripts. The pharmacy is clearly heavily dependent on government subsidies and allowances.

24


• Independent owner-operated community pharmacy

• Isolated strip of a few shops in small NSW town


• 60-80m2+


• Revenue $900K-$1M

• PBS benefits account for around half revenue

• Just under 20K PBS scripts per annum

• Country pharmacy providing CTG service with some reliance on the Rural Pharmacy Maintenance Allowance

KEY FACTS


This is an independent community pharmacy which does have affiliations with a buying group. Located in an isolated strip of shops in a small country town, Pharmacy 6 has one owner who operates the pharmacy. Pharmacy staffing

The owner works full-time in Pharmacy 6, and there are 2 part-time supporting staff – both are pharmacy assistants who are not involving in medicines dispensing. Pharmacy characteristics

Pharmacy 6 is mid-sized country pharmacy that allocates around 20% of its floor space to prescription dispensing and consulting activities. Pharmacy customer service

Open for around less than 45 hours a week, it offers regular hours and Saturdays only. Pharmacy 6 serves around 10,000-15,000 customers per annum, the vast majority of whom are only interested in prescription medicines, with retail-only customers accounting for around 1 in 5 revenue dollars. Pharmacy 6 offers little by way of fee-based services and does not service nursing home beds. Pharmacy financials

Total revenue in the last year for Pharmacy 6 was between $900K and $1M. Around half of this came from PBS benefits, while private prescriptions contribute less than 2% of revenue and a similar amount was received from government supported services. Pharmacy 6 also received the Rural Pharmacy Maintenance Allowance, to the value of around 4-5% of revenue – an allowance on which this pharmacy is reliant. Fee-based services contribute very little to revenue. Expenses incurred by Pharmacy 6 are inconsistently reported, but profits can be estimated to be around 15% of revenue. The most significant costs borne by this pharmacy are COGS, salaries and rent, while debt servicing is estimated at around 5% of revenue. Pharmacy 6 deals with 3 wholesalers who offer discounts of up to 1%. Close to 20,000 PBS scripts are processed by this country pharmacy each year, with around one in 10 of these being CTG. Overall the majority of scripts dispensed concessional and are for generic medicines.

25


• Independent community pharmacy

• Small shopping centre in remote Queensland town


• 75m2

• 1 FT staff

• Revenue $400K-$500K

• Around 10% of revenue is attributed to PBS benefits

• Fewer than 4K PBS scripts dispensed per annum

• Small pharmacy capturing retail sales and some medicines sales in remote centre, and dependent on the Rural Pharmacy Maintenance Allowance

KEY FACTS


Pharmacy 7 is an independent community pharmacy that is not affiliated with any buying or banner group. It is located in a small shopping centre in a remote town. This pharmacy has one owner and is owner managed. Pharmacy staffing

This pharmacy has only 1 member of staff – the owner – who works in the pharmacy full-time, with no other staff reported. Pharmacy characteristics

The pharmacy itself is around 75 square meters in size, with the majority of space dedicated to retail goods and storage/office, and the remainder divided equally between shelf space for OTC medicines and other therapeutic goods and the dispensary. Pharmacy customer service

Pharmacy 7 is open just over 35 hours a week, including opening early in the day but not on weekends. It serves between 10,000 and 15,000 customers per annum; two thirds of customers want prescription medicines and may also make supplementary purchases, while around a third of customer come for the purpose of retail products only. Pharmacy 7 offers some fee-based services, including compression garment fitting for DVT and home delivery of medicines, smoking cessation, respiratory issues and opioid dependency and needle programs (revenue records are not kept). Pharmacy financials

Total revenue in the last year was between $400K and $500K. Private scripts contributed around 10% of revenue and PBS benefits contributed a similar proportion of revenue. Pharmacy 7 received no remuneration for offering government-supported pharmacy services. Pharmacy 7 did receive the Rural Pharmacy Maintenance Allowance, to the value of around $30K - $40K –pharmacy management considers this pharmacy to be completely reliant on this allowance. Pharmacy 7 reports a profit of around 7-8% of its revenue. COGS and the owner’s salary are by far the largest costs for this pharmacy, with debt servicing an insignificant amount. Pharmacy 7 deals with 1 wholesaler who offers a discounts of up to 1%. General scripts account for the vast majority of PBS scripts dispensed and very few scripts are for patients who have reached the safety net.

26


• Independent owner-operated pharmacy

• Strip shopping centre in remote Tasmanian town

• Open about 40 hours

• Less than 50m2

• Staffing levels unclear

• Revenue $4.5M-$4.75M

• Less than 10% revenue from PBS government benefits

• Around 13K PBS scripts per year

• 1 in 20 scripts are CTG

• Focused on offering a wide variety of services in isolated community and completely reliant on the Rural Pharmacy Maintenance Allowance

KEY FACTS


This pharmacy is an independent community pharmacy not affiliated with any buying or banner group. Pharmacy 8 in located along a strip shopping centre in a remote Tasmania town. It has a single owner who also works in and runs the pharmacy. Pharmacy staffing

Staffing levels are unclear from the data. Pharmacy characteristics

The pharmacy itself is small, with more than a third of this space dedicated to the dispensary and consulting areas. Pharmacy customer service

Pharmacy 8 standard hours but does open on Saturdays and public holidays. It serves around 8,000 to 12,000 customers per annum and three quarters of customers can be linked to prescription sales. Pharmacy 8 offers a wide variety of services, including absence certificates, DDAs and health aids, Medscheck, diabetes management, medicines compounding, palliative care serves, among others. Pharmacy financials

Total revenue for Pharmacy 8 in the last year was between $4.5M and $4.75M and both PBs benefits and private scripts account for a small proportions of this. No revenue was generated from offering government-supported pharmacy services and income from fee base services is not recorded. This profit for this pharmacy is unclear from the responses. By far the most significant costs to this pharmacy is cost of goods sold, thereafter salaries and debt servicing. Pharmacy 8 deals with 1 wholesalers from which it receives a discount of up to 5-6%. Those PBS scripts dispensed by this pharmacy are predominately for concession card holders and for around 1 in 4 scripts patients have reached the safety net. Generics and branded medications are evenly dispensed and the costs of most PBS scripts means that government subsidies are required. CTG scripts represent around 1 in 20 PBS scripts dispensed by Pharmacy 8.

27


Appendix A: Data tables This section includes aggregated results for each survey question by PhARIA groups. The results for all questions around financial information have been reported as bands. The numbers in each cell indicate the number of pharmacies that gave that response in the survey.

Profile of participating pharmacies

Table 1: Pharmacy type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Independent community pharmacy that is not affiliated with any group

6 3 13 22

Independent community pharmacy that is affiliated with a buying group

5 6 5 16

Community pharmacy that is affiliated with banner group

6 6 4 16

Discount or warehouse style pharmacy 0 1 0 1 Friendly society 0 0 0 0 Total 17 16 22 55 Question: Q1. Which of the following best describes this pharmacy? Table 2: Method of operation PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Owner operated 15 13 14 42 Manager operated 2 3 8 13 Total 17 16 22 55 Question: Q2. Which of the following describes the method of operation of this pharmacy?

28


Table 3: Location type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Hospital pharmacy 0 0 0 0 Isolated (1-4 shops together) 3 6 8 17 Medical centre 1 2 0 3 Non-regional shopping centre 1 0 1 2 Neighbourhood shopping centre 5 0 1 6 Regional shopping centre 1 3 1 5 Strip shopping centre 6 4 11 21 Total 17 15 22 54 Question: Q4. Ask if 1, 2 or 3 at Q1: How would you describe this pharmacy’s location? Is it in… Table 4: Trading hours PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to 49 hours 4 7 18 29 50-69 hours 7 8 3 18 70 or more hours 6 1 1 8 Total 17 16 22 55 Question: Q5. For how many hours does this pharmacy trade over a 7-day week? Table 5: Out of hours trading PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Early morning (i.e. prior to 9am on any day of the week)

12 7 8 27

Late nights (i.e. closes after 7pm more than once a week)

5 0 0 5

On Saturdays 17 16 20 53 On Sundays 7 4 3 14 Public Holidays 8 6 4 18 Total 17 16 22 55 Question: Q6. Is this pharmacy open…

29


Store size and customer numbers

Table 6: Store size – overall PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to 100m2 4 3 11 18 101–200m2 8 8 5 21 More than 200m2 5 5 6 16 Total 17 16 22 55 Question: Q7. What is the total floor space size of this pharmacy (including the dispensary)? Table 7: Store size – section allocation – dispensing prescription medicines PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No allocation 0 0 0 0 1% - 10% allocated 1 3 7 11 11% - 20% allocated 11 9 10 30 21% - 40% allocated 4 4 4 12 41% - 60% allocated 1 0 0 1 61% - 80% allocated 0 0 0 0 81% or more allocated 0 0 1 1 Total 17 16 22 55 Question: Q8. Of the total pharmacy floor space, what is the proportion given to…? Table 8: Store size – section allocation – OTC medicines and therapeutic goods PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No allocation 0 0 0 0 1% - 10% allocated 5 1 1 7 11% - 20% allocated 6 5 7 18 21% - 40% allocated 2 3 5 10 41% - 60% allocated 4 4 7 15 61% - 80% allocated 0 3 1 4 81% or more allocated 0 0 0 0 Total 17 16 21 54 Question: Q8. Of the total pharmacy floor space, what is the proportion given to…?

30


Table 9: Store size – section allocation – other retail PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No allocation 0 1 0 1 1% - 10% allocated 4 2 1 7 11% - 20% allocated 1 2 2 5 21% - 40% allocated 4 6 6 16 41% - 60% allocated 5 2 8 15 61% - 80% allocated 1 0 0 1 81% or more allocated 0 0 0 0 Total 15 13 17 45 Question: Q8. Of the total pharmacy floor space, what is the proportion given to…? Table 10: Store size – section allocation – private consulting rooms or spaces PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No allocation 1 3 3 7 1% - 10% allocated 12 11 14 37 11% - 20% allocated 1 1 0 2 21% - 40% allocated 0 0 0 0 41% - 60% allocated 0 0 0 0 61% - 80% allocated 0 0 0 0 81% or more allocated 0 0 0 0 Total 14 15 17 46 Question: Q8. Of the total pharmacy floor space, what is the proportion given to…?

31


Table 11: Store size – section allocation – any other purpose (storage, office, etc.) PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No allocation 0 1 0 1 1% - 10% allocated 11 8 11 30 11% - 20% allocated 3 3 7 13 21% - 40% allocated 2 2 1 5 41% - 60% allocated 1 1 0 2 61% - 80% allocated 0 0 0 0 81% or more allocated 0 0 0 0 Total 17 15 19 51 Question: Q8. Of the total pharmacy floor space, what is the proportion given to…? Table 12: Customer count PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

10,000 or less customers 1 1 6 8 10,001 - 25,000 customers 3 5 9 17 25,001 - 40,000 customers 6 3 1 10 40,001 - 95,000 customers 3 5 4 12 More than 95,000 customers 4 2 2 8 Total 17 16 22 55 Question: Q9. How many customer sales interactions did this pharmacy have in 2015-16 financial year? Table 13: Customer proportion by purpose – prescription medicines only PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No customers 0 0 0 0 1% - 10% customers 0 0 0 0 11% - 20% customers 0 0 2 2 21% - 40% customers 2 3 5 10 41% - 60% customers 4 9 9 22 61% - 80% customers 7 2 4 13 81% or more customers 4 2 2 8 Total 17 16 22 55 Question: Q10. Could you provide an estimate of the proportion of customers served for the purpose of…?

32


Table 14: Customer proportion by purpose – prescription medicine and retail/OTC sales PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No customers 0 0 0 0 1% - 10% customers 1 2 5 8 11% - 20% customers 10 4 6 20 21% - 40% customers 1 9 7 17 41% - 60% customers 2 0 1 3 61% - 80% customers 0 0 1 1 81% or more customers 0 0 0 0 Total 14 15 20 49 Question: Q10. Could you provide an estimate of the proportion of customers served for the purpose of…? Table 15: Customer proportion by purpose – retail/OTC sales only PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No customers 0 0 0 0 1% - 10% customers 7 7 6 20 11% - 20% customers 4 4 6 14 21% - 40% customers 4 4 7 15 41% - 60% customers 0 1 2 3 61% - 80% customers 0 0 1 1 81% or more customers 0 0 0 0 Total 15 16 22 53 Question: Q10. Could you provide an estimate of the proportion of customers served for the purpose of…?

33


Staff levels

Full time staff

Table 16: Number of full time staff – total number PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

1 full time staff 1 4 10 15 2-3 full time staff 4 7 5 16 4-5 full time staff 7 1 5 13 6-10 full time staff 2 4 2 8 More than 10 3 0 0 3 Total 17 16 22 55 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 17: Number of full time staff – proprietor or owner PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 4 2 10 16 1 staff in this role 8 12 12 32 2 staff in this role 3 1 0 4 3 staff in this role 1 0 0 1 4 or more staff in this role 1 0 0 1 Total 17 15 22 54 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 18: Number of full time staff – managers (actually employed as a manager role and be responsible for the day to day control of business) PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 12 10 15 37 1 staff in this role 2 6 7 15 2 staff in this role 2 0 0 2 3 staff in this role 0 0 0 0 4 or more staff in this role 1 0 0 1 Total 17 16 22 55

34


Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 19: Number of full time staff – pharmacists in charge PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 4 6 15 25 1 staff in this role 6 8 6 20 2 staff in this role 6 0 0 6 3 staff in this role 0 0 0 0 4 or more staff in this role 0 0 0 0 Total 16 14 21 51 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 20: Number of full time staff – other qualified staff PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 13 13 18 44 1 staff in this role 1 3 4 8 2 staff in this role 0 0 0 0 3 staff in this role 1 0 0 1 4 or more staff in this role 0 0 0 0 Total 15 16 22 53 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 21: Number of full time staff – dispensary assistant (Pharmacy Assistant Grade 3 or 4, actually working in the Dispensary) PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 6 10 15 31 1 staff in this role 5 2 4 11 2 staff in this role 5 1 3 9 3 staff in this role 0 1 0 1 4 or more staff in this role 0 0 0 0 Total 16 14 22 52 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff.

35


Part time staff

Table 22: Number of part time staff – total number PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No part time staff 3 5 9 17 1 part time staff 4 1 4 9 2-3 part time staff 3 1 5 9 4-5 part time staff 2 4 1 7 6-10 part time staff 2 3 2 7 More than 10 part time staff 3 2 2 6 Total 17 16 22 55 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 23: Number of part time staff – proprietors/owners PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 9 12 21 42 1 staff in this role 5 4 0 9 2 staff in this role 0 0 0 0 3 staff in this role 0 0 1 1 4 or more staff in this role 0 0 0 0 Total 14 16 22 52 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 24: Number of part time staff – managers (actually employed as a manager role and be responsible for the day to day control of business) PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 15 15 22 52 1 staff in this role 1 1 0 2 2 staff in this role 0 0 0 0 3 staff in this role 0 0 0 0 4 or more staff in this role 0 0 0 0 Total 16 16 22 54

36


Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 25: Number of part time staff – pharmacists in charge PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 10 12 21 43 1 staff in this role 3 3 1 7 2 staff in this role 3 1 0 4 3 staff in this role 0 0 0 0 4 or more staff in this role 0 0 0 0 Total 16 16 22 54 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 26: Number of part time staff – other qualified staff PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No staff in this role 12 11 18 41 1 staff in this role 2 4 3 9 2 staff in this role 0 1 1 2 3 staff in this role 1 0 0 1 4 or more staff in this role 0 0 0 0 Total 15 16 22 53 Question: Q11.How many employees does this pharmacy have and how many hours in total do they work per week? Please include all currently employed staff. Table 27: Number of part time staff – dispensary assistant (Pharmacy Assistant Grade 3 or 4, actually working in the Dispensary) PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


37


Table 28: Number of part time staff – other pharmacy assistants and staff PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Number of owners and amount of time spent

Table 29: Number of owners PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

1 owner 8 9 17 34 2 owners 5 4 0 9 3 owners 1 3 2 6 4 owners 1 0 2 3 5 owners 2 0 1 3 Total 17 16 22 55 Question: Q12. How many owners does this pharmacy have? (Note, ownership is defined as 20% or more share of a pharmacy)

38


Table 30: Number of weeks per year spent by owner working in the pharmacy Owner 1 Owner 2 Owner 3 Owner 4 Owner 5

PhAR

IA 1

PhAR

IA 2

and

3

PhAR

IA 4,

5 and

6

Tota

l

PhAR

IA 1

PhAR

IA 2

and

3

PhAR

IA 4,

5 and

6

Tota

l

PhAR

IA 1

PhAR

IA 2

and

3

PhAR

IA 4,

5 and

6

Tota

l

PhAR

IA 1

PhAR

IA 2

and

3

PhAR

IA 4,

5 and

6

Tota

l

PhAR

IA 1

PhAR

IA 2

and

3

PhAR

IA 4,

5 and

6

Tota

l

Owner does not work in pharmacy

2 2 6 10 3 1 3 7 1 2 3 6 2 0 2 4 1 0 1 2

1–20 weeks per year 2 1 2 5 0 2 1 3 1 0 2 3 0 0 1 1 0 0 0 0 21–40 weeks per year 3 2 1 6 2 0 1 3 1 0 0 1 0 0 0 0 0 0 0 0 41–50 weeks per year 9 6 5 20 3 1 0 4 0 0 0 0 0 0 0 0 0 0 0 0 More than 50 weeks per year

1 5 8 14 1 2 0 3 0 1 0 1 0 0 0 0 0 0 0 0

Total 17 16 22 55 9 6 5 20 3 3 5 11 2 0 3 5 1 0 1 2 Question: Q13. How many weeks per year does each of the owners of this pharmacy work at this pharmacy (Note, ownership is defined as 20% or more share of a pharmacy)?

39


Wholesaler relationships

Table 31: Number of wholesalers dealt with PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

1 1 0 8 9 2 7 6 4 17 3 4 2 1 7 4 0 2 2 4 5 0 2 0 2 6 1 0 0 1 Total 13 12 15 40 Question: Q32. How many different wholesalers does this pharmacy deal with that supply PBS medicines to your pharmacy? Table 32: Proportion of discount PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

I do not receive any rebates or discounts on PBS medicines from wholesalers or suppliers

2 0 2 4

Up to 1% 5 5 3 13 1% - 2% 5 1 3 9 2% - 3% 0 3 3 6 3% - 4% 0 2 0 2 4% - 5% 0 0 1 1 5% - 6% 0 1 1 2 6% - 7% 0 0 0 0 7% - 8% 0 0 0 0 8% or more 0 0 2 2 Total 12 12 15 39 Question: Q33. On average in 2015-16 financial year, what was the % value of the rebate/discount on PBS medicines that this pharmacy received from wholesalers or suppliers?

40


Table 33: Proportion of discount versus previous years PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Less than amount received in 2014/15 financial year

9 9 10 28

Same as amount received in 2014/15 financial year

1 0 1 2

More than amount received in 2014/15 financial year

0 1 0 1

Not sure 0 2 0 2 Total 10 12 11 33 Question: Q34. Is the amount of rebate/discount on PBS medicines that this pharmacy received in 2015 -16 financial year from wholesalers or suppliers…? Table 34: Number of manufacturers supplying PBS medicines through a direct supply relationship PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

1 9 12 12 33 2 1 0 1 2 3 0 0 1 1 4 0 0 1 1 5 1 0 0 1 Total 11 12 15 38 Question: Q35. How many manufacturers supply PBS medicines to your pharmacy through a direct supply relationship?

41


Business financials

Annual revenue

Table 35: Total sales including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $200,000 0 3 0 3 $200,001 - $500,000 0 1 6 7 $500,001 - $1,000,000 3 1 8 12 $1,000,001 - $2,500,000 8 5 3 16 More than $2,500,000 5 5 5 15 Total 16 15 22 53 Question: Q14. Please type in the pharmacy’s annual revenue (turnover) in 2015-16 from total sales (including dispensary, OTC and retail). Table 36: Revenue from other sources including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No other sources of revenue 2 0 3 5 Up to $20,000 7 5 1 13 $20,001 - $40,000 3 2 8 13 $40,001 - $60,000 0 3 3 6 $60,001 - $100,000 2 1 2 5 More than $100,000 1 3 2 6 Total 15 14 19 48 Question: Q14. Please type in the pharmacy’s annual revenue (turnover) in 2015-16 from all other sources (including revenue from incentives, remuneration and fees received for services).

42


Table 37: Total revenue including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $200,000 0 1 0 1 $200,001 - $500,000 0 2 6 8 $500,001 - $1,000,000 3 1 5 9 $1,000,001 - $2,500,000 8 5 6 19 More than $2,500,000 5 6 5 16 Total 16 15 22 53 Question: Q14. Please type in the pharmacy’s annual revenue (turnover) in 2015-16.

Profit metric

Table 38: Profit metric PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $50,000 0 1 5 6 $50,001 - $100,000 2 2 3 7 $100,001 - $200,000 4 1 4 9 $200,001 - $500,000 4 5 2 11 More than $500,000 2 3 0 5 Total 12 12 14 38 Question: Q31. What was the pharmacy’s earnings before interest, taxes, depreciation and amortization (EBITDA) in 2015-16? Note, owner/s notional salary and drawings should be excluded from earnings calculations.

Expenses

Table 39: Total expenditure including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $500,000 2 3 6 11 $500,001 - $1,000,000 1 1 5 7 $1,000,001 - $2,000,000 5 2 0 7 $2,000,001 - $3,000,000 2 4 2 8 More than $3,000,001 4 2 1 7 Total 14 12 14 40 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known.

43


Table 40: Cost of goods sold including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $150,000 1 0 1 2 $150,001 - $300,000 0 0 5 5 $300,001 - $500,000 1 4 2 7 $500,001 - $1,000,000 4 1 3 8 $1,000,001 - $1,500,000 2 2 1 5 More than 1,500,000 6 5 2 13 Total 14 12 14 40 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known. Table 41: Wages and staff costs including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 0 0 2 2 $5,001 - $10,000 1 0 0 1 $10,001 - $20,000 0 0 2 2 $20,001 - $30,000 0 0 0 0 $30,001 - $40,000 0 1 1 2 More than $40,000 13 11 8 32 Total 14 12 13 39 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known.

44


Table 42: Rent and occupancy costs including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 2 0 1 3 $5,001 - $10,000 0 0 3 3 $10,001 - $20,000 0 2 1 3 $20,001 - $30,000 0 4 5 9 $30,001 - $40,000 1 0 0 1 More than $40,000 11 6 3 20 Total 14 12 13 39 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known. Table 43: Computers technology and info systems costs including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 2 3 5 10 $5,001 - $10,000 3 3 2 8 $10,001 - $20,000 5 5 5 15 $20,001 - $30,000 3 1 1 5 $30,001 - $40,000 1 0 0 1 More than $40,000 0 0 0 0 Total 14 12 13 39 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known. Table 44: Advertising promotion and marketing group fees including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


45


Table 45: Training and professional development including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 7 7 8 22 $5,001 - $10,000 6 0 5 11 $10,001 - $20,000 1 3 0 4 $20,001 - $30,000 0 0 0 0 $30,001 - $40,000 0 0 0 0 More than $40,000 0 0 0 0 Total 14 10 13 37 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known. Table 46: Cost of servicing debt including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 1 3 3 7 $5,001 - $10,000 2 2 1 5 $10,001 - $20,000 1 1 2 4 $20,001 - $30,000 2 0 3 5 $30,001 - $40,000 0 0 1 1 More than $40,000 7 5 3 15 Total 13 11 13 37 Question: Q28. Please enter the value of the following for this pharmacy in the 2015-16 financial year. Provide a best estimate if actual values are not known. Table 47: Accounting and bookkeeping costs including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


46


Table 48: Other expenditure including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Remuneration for services

Table 49: Financial remuneration for government-supported services PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Dose Administration Aids 14 11 12 37 Clinical interventions 13 11 13 37 Staged supply 11 9 11 31 Home Medicines Review 11 6 3 20 Medscheck 12 9 9 30 Diabetes Medscheck 9 8 8 25 Residential Medication Management Review 1 3 2 6 QUM 1 6 0 7 Did not receive remuneration for any of these in 2015-16 1 3 5 9 Don’t know 0 0 0 0 Total 15 14 20 49 Question: Q16. For which of the following government-supported pharmacy services did you receive remuneration in the 2015-16 financial year?.

47


Table 50: Financial remuneration – total from all services PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$2,000 1 1 2 4 $2,001 - $5,000 2 0 2 4 $5,001 - $10,000 1 0 6 7 $10,001 - $15,000 1 2 2 5 $15,001 - $30,000 6 3 2 11 More than $30,000 1 2 0 3 Total 12 8 14 34 Question: Q17. And for each of the following government supported services, how much remuneration did you receive from the government in the 2015-16 financial year? Table 51: Financial remuneration – dose administration aids PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$0 0 0 0 0 $1 - $1,000 0 1 1 2 $1,001 - $2,000 0 0 0 0 $2,001 - $3,000 2 0 0 2 $3,001 - $5,000 1 1 2 4 $5,001 - $10,000 3 3 2 8 More than $10,000 3 3 1 7 Total 9 8 6 23 Question: Q17. And for each of the following government supported services, how much remuneration did you receive from the government in the 2015-16 financial year?

48


Table 52: Financial remuneration – clinical intervention PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$0 0 0 0 0 $1 - $1,000 0 3 2 5 $1,001 - $2,000 1 1 3 5 $2,001 - $3,000 2 1 0 3 $3,001 - $5,000 1 0 1 2 $5,001 - $10,000 3 1 0 4 More than $10,000 1 2 0 3 Total 8 8 6 22 Question: Q17. And for each of the following government supported services, how much remuneration did you receive from the government in the 2015-16 financial year? Table 53: Financial remuneration – staged supply PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


49


Table 54: Financial remuneration – Home Medicines Review PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$0 1 0 1 2 $1 - $1,000 2 2 0 4 $1,001 - $2,000 2 1 0 3 $2,001 - $3,000 0 0 0 0 $3,001 - $5,000 1 1 0 2 $5,001 - $10,000 0 1 0 1 More than $10,000 0 0 0 0 Total 6 5 1 12 Question: Q17. And for each of the following government supported services, how much remuneration did you receive from the government in the 2015-16 financial year? Table 55: Financial remuneration – Medscheck PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


50


Table 56: Financial remuneration – Diabetes Medscheck PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$0 0 1 0 1 $1 - $1,000 2 1 2 5 $1,001 - $2,000 1 2 1 4 $2,001 - $3,000 2 0 0 2 $3,001 - $5,000 0 0 0 0 $5,001 - $10,000 0 0 0 0 More than $10,000 0 0 0 0 Total 5 4 3 12 Question: Q17. And for each of the following government supported services, how much remuneration did you receive from the government in the 2015-16 financial year? Table 57: Financial remuneration – Residential Medication Management Review PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


51


Table 58: Financial remuneration – QUM service PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Table 59: Financial remuneration – Total remuneration received for supported services PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$2,000 1 1 2 4 $2,001 - $5,000 2 0 2 4 $5,001 - $10,000 1 0 6 7 $10,001 - $15,000 1 2 2 5 $15,001 - $30,000 6 3 2 11 More than $30,000 1 2 0 3 Total 12 8 14 34 Question: Q17. And for each of the following government supported services, how much remuneration did you receive from the government in the 2015-16 financial year?

52


Remuneration for payments or allowances

Table 60: Government allowances and support payments for which remuneration was claimed PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Rural and Remote Allowance 0 5 4 9 Continuing Professional Education Allowance 0 0 1 1 Emergency Locum Service 0 0 0 0 Intern Incentive Allowance for Rural Pharmacies 0 4 0 4 Rural Intern Training Allowance 0 1 0 1 Rural Pharmacy Liaison Officer Programme 0 0 0 0 Rural Pharmacy Maintenance Allowance 0 5 12 17 Rural Pharmacy Scholarship Scheme 0 0 0 0 Rural Pharmacy Student Placement and Administrative Support 0 0 0 0 Aboriginal and Torres Strait Islander Pharmacy Assistant Traineeship and Scholarship Schemes 0 0 1 1 QUMAX – Quality Use of Medicines Maximised for Aboriginal & Torres Strait Islander People 0 1 1 2 S100 Pharmacy Support Allowance 1 0 0 1 Pharmacy Trial Programme 0 0 0 0 E-Health Programme (Electronic Prescription Fee) 3 2 1 6 Did not receive any of these payments or allowances in 2015-16 9 2 2 13 Don’t know 3 1 1 5 Total 15 13 18 46 Question: Q18. Which of the following government allowances and support payments did you claim remuneration for in the 2015-16 financial year?

53


Table 61: Total remuneration from payments and allowances including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 3 1 1 5 $5,001 - $15,000 0 4 1 5 $15,001 - $20,000 0 3 2 5 $20001 - $30,000 0 0 5 5 More than $30,000 0 0 6 6 Total 3 8 15 26 Question: Q19. And thinking about the following government allowances and support payments you have claimed, how much remuneration did you receive for these in total in the 2015-16 financial year? (Please do not include any remuneration for dispensing PBS medicines)

RPMA

Table 62: Importance of RPMA remuneration PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Completely reliant (would not survive without it)

0 2 8 10

Somewhat reliant 0 3 3 6 Not at all reliant 0 0 0 0 Not sure 0 0 1 1 Total 0 5 12 17 Question: Q20. How reliant is this pharmacy on the Rural Pharmacy Maintenance Allowance for its financial sustainability?

54


Table 63: Proportion of revenue from RPMA PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

0 0 0 1 1 1 0 1 0 1 2 0 1 2 3 3 0 2 0 2 4 0 0 1 1 5 0 0 2 2 6 0 0 1 1 10 0 1 1 2 20 0 0 1 1 24 0 0 1 1 25 0 0 1 1 35 0 0 1 1 Total 0 5 12 17 Question: Q21. And how much does the Rural Pharmacy Maintenance Allowance contribute to the overall revenue of the pharmacy?

55


Services to nursing homes

Table 64: Service to nursing homes PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Yes 3 6 6 15 No 12 7 12 31 Total 15 13 18 46 Question: Q22. Does this pharmacy service any nursing homes? Table 65: Number of beds serviced PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Less than 30 0 1 4 5 31 - 60 0 3 2 5 More than 61 3 2 0 5 Total 3 6 6 15 Question: Q23. How many beds in total do you service at nursing homes? Table 66: Average charge per bed including GST PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5 2 4 2 8 $6 - $20 0 2 2 4 More than $20 0 0 1 1 Total 2 6 5 13 Question: Q24. On average, how much does this pharmacy charge or get paid by nursing homes per bed?

56


Fee based services

Table 67: Government allowances and support payments for which remuneration was claimed PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Absence from work certificate provision 9 2 10 21 Adherence/compliance support 2 3 1 6 Aged care services 1 3 1 5 Arthritis services 0 1 1 2 Blood pressure and cardiovascular disease risk assessment

5 4 3 12

Bone density testing 1 1 2 4 Cardiovascular disease services 1 2 1 4 Compounded medicines 8 1 2 11 Compression garment fitting for DVT 1 2 2 5 Diabetes management services (NDSS) 6 2 3 11 Diabetes risk assessment 3 1 0 4 Dose administration aids 13 8 11 32 Health advice 2 1 3 6 Health aids and equipment provision 3 4 5 12 Home delivery services 2 2 2 6 Immunisation services (nurse-led) 1 0 1 2 INR (anticoagulant therapy) monitoring 0 0 0 0 Maternal and child health clinics 0 0 0 0 Mental health support services 0 1 0 1 Minor ailment treatment 1 2 1 4 Needle and syringe programs 4 3 3 10 Opioid dependence treatment 8 3 9 20 Pain management services 1 1 1 3 Palliative support services 0 1 1 2 Point of care testing cholesterol and blood glucose 3 1 1 5 Respiratory services (Asthma, COPD) 2 2 3 7

57


Self-test screening: bowel cancer and chlamydia 5 1 2 8 Sleep apnoea services 2 1 0 3 Smoking cessation 2 1 5 8 Staged supply 10 2 7 19 Weight management and nutrition services 6 1 2 9 Other (please specify) 1 2 3 6 Total 15 13 18 46 Question: Q25. Which of the following services does this pharmacy provide to customers for a fee? Table 68: Fee for services offered – charges PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Yes 7 4 7 18 No 7 6 9 22 Don’t know 1 1 0 2 Total 15 11 16 42

Question: Q26. Do you maintain records of the revenue generated by this pharmacy from the provision of these services (i.e. customer payments, not government remuneration)? Table 69: Revenue from fee for services PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5,000 2 2 6 10 $5,001 - $10,000 3 0 0 3 More than $10,000 2 2 1 5 Total 7 4 7 18

Question: Q27. What was the total revenue generated by this pharmacy from these service fees in the 2015-16 financial year? Please only include fees paid by customers, not any government remuneration you received for these services.

58


Owners salary

Table 70: Owners’ notional salary and drawings PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $40,000 2 2 3 7 $40,001 - $60,000 0 3 4 7 $60,001 - $80,000 1 1 2 4 $80,001 - $100,000 7 2 0 9 More than $100,000 4 4 5 13 Total 14 12 14 40

Question: Q29. What was the total of the owner/s notional salary and drawings for this pharmacy in the 2015-16 financial year?

Revenue used for debt servicing

Table 71: Percentage of overall revenue used for debt servicing PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

0 2 2 2 6 1% - 5% 5 3 8 16 6% - 10% 3 3 1 7 11% - 20% 3 3 1 7 30% - 40% 1 0 2 3 100% 0 1 0 1 Total 14 12 14 40

Question: Q30. In 2015-16, what was the percentage of revenue used to service loans or debts of the pharmacy?

59


PBS data – Aggregate level detailed data from the DOH

Number of PBS Scripts dispensed (Overall)

Table 72: Number of PBS scripts dispensed PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to 5,000 scripts 1 0 2 3

5,001 - 10,000 scripts 0 1 2 3

10,001 - 15,000 scripts 1 1 4 6

15,001 - 20,000 scripts 0 0 3 3

20,001 - 40,000 scripts 4 1 1 6

More than 40,000 scripts 3 2 2 7

Total 9 5 14 28

Source: Department of Health supplied PBS data

Benefit amount

Table 73: Benefit amount – Amount paid by government for PBS scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $50,000 0 0 2 2 $50,001 - $100,000 1 0 0 1 $100,001 - $300,000 0 2 2 4 $300,001 - $500,000 0 0 6 6 $500,001 - $1,000,000 2 0 2 4 $1,000,001 - $2,000,000 5 3 2 10 More than $2,000,000 1 0 0 1 Total 9 5 14 28 Source: Department of Health supplied PBS data

60


Patient contribution

Table 74: Patient contribution – Amount paid by patient for PBS scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $50,000 1 0 1 2 $50,001 - $100,000 0 2 6 8 $100,001 - $200,000 2 0 5 7 $200,001 - $500,000 3 2 2 7 More than $500,000 3 1 0 4 Total 9 5 14 28 Source: Department of Health supplied PBS data

Discount amount

Table 75: Discount amount - Relate to $1 discount if applied (may not be the full $1 amount) PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

No discount applied 0 3 8 11 $1 - $1,000 5 2 6 13 $1,001 - $5,000 1 0 0 1 More than $5,000 3 0 0 3 Total 9 5 14 28 Source: Department of Health supplied PBS data

Price to Pharmacy

Table 76: Price to Pharmacy PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $5000 0 0 1 1

$5,001 - $100,000 1 0 1 2

$100,001 - $200,000 0 0 1 1

$200,001 - $300,000 0 2 3 5

$300,001 - $500,000 0 0 6 6

More than $500,000 8 3 2 13

Total 9 5 14 28


61


Wholesaler mark-up

Table 77: Wholesaler mark-up - Mark-up applied by wholesaler to Ex-Man Price PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $10,000 1 0 3 4

$10,001 - $20,000 0 2 4 6

$(20,001 - $40,000 1 0 5 6

$40,001 - $50,000 2 1 0 3

More than $50,000 5 2 2 9

Total 9 5 14 28


Pharmacy mark-up

Table 78: Pharmacy mark-up PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $30,000 1 0 3 4

$30,001 - $60,000 1 2 5 8

$60,001 - $100,000 0 0 4 4

$100,001 - $200,000 4 1 1 6

More than $200,000 3 2 1 6

Total 9 5 14 28


Dispensing fee

Table 79: Dispensing fee PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $60,000 1 1 4 6

$60,001 - $120,000 1 1 4 6

$120,001 - $200,000 1 0 4 5

$200,001 - $300,000 3 1 0 4

More than $300,000 3 2 2 7

Total 9 5 14 28


62


Dangerous drug fee

Table 80: Dangerous drug fee PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$0 0 0 1 1 $1 - $1,000 1 1 4 6 $1,001 - $2,000 2 1 4 7 $2001 - $3,000 0 0 3 3 $3,001 - $4,000 3 1 0 4 $4,001 - $6,000 0 1 2 3 More than $6000 3 1 0 4 Total 9 5 14 28 Source: Department of Health supplied PBS data

Fee paid under the Premium Free Dispensing initiative

Table 81: Fee paid under the Premium Free Dispensing initiative PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $1,000 0 0 3 3 $1,001 - $6,000 2 1 2 5 $6,001 - $9,000 1 1 6 8 $9,001 - $16,000 3 1 1 5 $16,001 - $21,000 0 0 1 1 More than $21,000 3 2 1 6 Total 9 5 14 28 Source: Department of Health supplied PBS data

63


Electronic prescription fee

Table 82: Electronic prescription fee PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$0 1 1 5 7 $1 - $500 1 1 4 6 $501 - $1,500 2 1 2 5 $1,501 - $2,500 3 0 1 4 $2,501 - $4,000 1 1 1 3 More than $4,000 1 1 1 3 Total 9 5 14 28 Source: Department of Health supplied PBS data

Wastage amount

Table 83: Wastage amount PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $50 2 0 6 8 $51 - $100 0 2 2 4 $101 - $300 2 0 1 3 $301 - $$500 2 2 3 7 More than $500 3 1 0 4 Total 9 5 12 26 Source: Department of Health supplied PBS data

Container fee

Table 84: Container fee PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Upto $20 2 1 8 11 $21 - $40 0 1 3 4 $41 - $60 2 0 2 4 $61 - $100 1 2 0 3 More than $100 4 1 0 5 Total 9 5 13 27 Source: Department of Health supplied PBS data

64


PBS data – Script type level detailed data from the DOH

Number of PBS Scripts dispensed by script type

Table 85: Total number of PBS scripts dispensed by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over 291,534 134,197 203,770 629,501

Under 103,663 36,968 47,990 188,621

Total 395,197 171,165 251,760 818,122

Source: Department of Health supplied PBS data Table 86: Total number of PBS scripts dispensed by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Concessional Safety Net (C0) 61,859 21,704 48,842 132,405

Concessional Ordinary (C1) 208,283 101,755 141,736 451,774

General Safety Net (G1) 4,145 1,830 2,885 8,860

General Ordinary (G2) 120,910 45,876 58,297 225,083

Total 395,197 171,165 251,760 818,122

Source: Department of Health supplied PBS data Table 87: Total number of PBS scripts dispensed by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic 252,684 104,477 162,041 519,202 Innovator / Branded 142,513 66,688 89,719 298,920 Total 395,197 171,165 251,760 818,122 Source: Department of Health supplied PBS data Table 88: Total number of PBS scripts dispensed by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) 4,086 13,183 13,998 31,267 Non closing the gap (NON – CTG) 391,111 157,982 237,762 786,855 Total 395,197 171,165 251,760 818,122 Source: Department of Health supplied PBS data

65


Benefit amount by script type

Table 89: Benefit amount – Amount paid by government for PBS scripts by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $12,590,176 $4,533,653 $6,425,301 $23,549,130

Under $0 $0 $0 $0

Total $12,590,176 $4,533,653 $6,425,301 $23,549,130

Source: Department of Health supplied PBS data Table 90: Benefit amount – Amount paid by government for PBS scripts by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Concessional Safety Net (C0) $2,097,165 $704,382 $1,580,651 $4,382,199

Concessional Ordinary (C1) $6,887,868 $2,879,535 $3,810,382 $13,577,785

General Safety Net (G1) $179,199 $67,053 $110,468 $356,719

General Ordinary (G2) $3,425,944 $882,683 $923,800 $5,232,427

Total $12,590,176 $4,533,653 $6,425,301 $23,549,130

Source: Department of Health supplied PBS data Table 91: Benefit amount – Amount paid by government for PBS scripts by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $2,785,727 $1,171,081 $1,886,250 $5,843,057 Innovator / Branded $9,804,450 $3,362,572 $4,539,051 $17,706,073 Total $12,590,176 $4,533,653 $6,425,301 $23,549,130 Source: Department of Health supplied PBS data Table 92: Benefit amount – Amount paid by government for PBS scripts by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $121,038 $321,037 $443,484 $885,559 Non closing the gap (NON – CTG) $12,469,138 $4,212,615 $5,981,817 $22,663,571 Total $12,590,176 $4,533,653 $6,425,301 $23,549,130 Source: Department of Health supplied PBS data

66


Patient contribution by script type

Table 93: Patient contribution – Amount paid by patient for PBS scripts by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $1,931,745 $819,511 $1,146,938 $3,898,194

Under $1,779,792 $655,573 $843,616 $3,278,981

Total $3,711,538 $1,475,083 $1,990,554 $7,177,175

Source: Department of Health supplied PBS data Table 94: Patient contribution – Amount paid by patient for PBS scripts by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Concessional Safety Net (C0) $0 $0 $0 $0

Concessional Ordinary (C1) $1,262,956 $569,298 $818,269 $2,650,523


General Ordinary (G2) $2,423,286 $895,465 $1,155,529 $4,474,280

Total $3,711,538 $1,475,083 $1,990,554 $7,177,175

Source: Department of Health supplied PBS data Table 95: Patient contribution – Amount paid by patient for PBS scripts by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $2,227,857 $845,266 $1,206,466 $4,279,589 Innovator / Branded $1,483,681 $629,817 $784,088 $2,897,586 Total $3,711,538 $1,475,083 $1,990,554 $7,177,175 Source: Department of Health supplied PBS data Table 96: Patient contribution – Amount paid by patient for PBS scripts by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


67


Discount amount by script type

Table 97: Discount amount - Relate to $1 discount if applied by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $39,160 $389 $2,148 $41,697

Under $0 $0 $0 $0

Total $39,160 $389 $2,148 $41,697

Source: Department of Health supplied PBS data Table 98: Discount amount - Relate to $1 discount if applied by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Concessional Ordinary (C1) $38,722 $385 $2,097 $41,204

General Safety Net (G1) $62 $0 $2 $64

General Ordinary (G2) $376 $4 $48 $428

Total $39,160 $389 $2,148 $41,697

Source: Department of Health supplied PBS data Table 99: Discount amount - Relate to $1 discount if applied by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $25,667 $266 $1,371 $27,304 Innovator / Branded $13,493 $123 $777 $14,393 Total $39,160 $389 $2,148 $41,697 Source: Department of Health supplied PBS data Table 100: Discount amount - Relate to $1 discount if applied by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $9 $0 $15 $24 Non closing the gap (NON – CTG) $39,151 $389 $2,133 $41,673 Total $39,160 $389 $2,148 $41,697 Source: Department of Health supplied PBS data

68


Price to Pharmacy by script type

Table 101: Price to Pharmacy by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $10,881,557 $3,637,165 $5,228,270 $19,746,993

Under $676,794 $265,986 $335,241 $1,278,021

Total $11,558,352 $3,903,151 $5,563,511 $21,025,014

Source: Department of Health supplied PBS data Table 102: Price to Pharmacy by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Concessional Safety Net (C0) $1,321,029 $465,150 $1,008,049 $2,794,227

Concessional Ordinary (C1) $5,680,595 $2,259,903 $3,029,151 $10,969,649


General Ordinary (G2) $4,406,427 $1,125,638 $1,437,353 $6,969,418

Total $11,558,352 $3,903,151 $5,563,511 $21,025,014

Source: Department of Health supplied PBS data Table 103: Price to Pharmacy by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $2,285,109 $867,874 $1,354,231 $4,507,213 Innovator / Branded $9,273,243 $3,035,277 $4,209,280 $16,517,800 Total $11,558,352 $3,903,151 $5,563,511 $21,025,014 Source: Department of Health supplied PBS data Table 104: Price to Pharmacy by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


69


Wholesaler mark-up by script type

Table 105: Wholesaler mark-up by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $533,699 $204,352 $312,351 $1,050,401

Under $47,344 $18,606 $23,448 $89,398

Total $581,043 $222,957 $335,798 $1,139,799

Source: Department of Health supplied PBS data Table 106: Wholesaler mark-up by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Concessional Safety Net (C0) $83,419 $29,144 $66,894 $179,457

Concessional Ordinary (C1) $298,548 $129,426 $183,463 $611,437


General Ordinary (G2) $190,422 $61,043 $80,402 $331,868

Total $581,043 $222,957 $335,798 $1,139,799

Source: Department of Health supplied PBS data Table 107: Wholesaler mark-up by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $147,205 $60,566 $91,485 $299,256 Innovator / Branded $433,838 $162,391 $244,313 $840,543 Total $581,043 $222,957 $335,798 $1,139,799 Source: Department of Health supplied PBS data Table 108: Wholesaler mark-up by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $5,059 $12,892 $20,835 $38,786 Non closing the gap (NON – CTG) $575,984 $210,065 $314,963 $1,101,013 Total $581,043 $222,957 $335,798 $1,139,799 Source: Department of Health supplied PBS data

70


Pharmacy mark-up by script type

Table 109: Pharmacy mark-up by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $1,191,003 $524,569 $798,219 $2,513,791

Under $369,560 $131,325 $171,303 $672,188

Total $1,560,563 $655,894 $969,522 $3,185,979

Source: Department of Health supplied PBS data Table 110: Pharmacy mark-up by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Concessional Ordinary (C1) $814,938 $387,117 $542,035 $1,744,090



Total $1,560,563 $655,894 $969,522 $3,185,979

Source: Department of Health supplied PBS data Table 111: Pharmacy mark-up by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $941,277 $386,552 $601,236 $1,929,064 Innovator / Branded $619,286 $269,342 $368,287 $1,256,915 Total $1560,563 $655,894 $969,522 $3,185,979 Source: Department of Health supplied PBS data Table 112: Pharmacy mark-up by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $14,997 $47,980 $53,589 $116,566 Non closing the gap (NON – CTG) $1,545,566 $607,914 $915,933 $3,069,413 Total $1,560,563 $655,894 $969,522 $3,185,979 Source: Department of Health supplied PBS data

71


Dispensing fee by script type

Table 113: Dispensing fee by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $2,019,472 $930,229 $1,410,316 $4,360,016

Under $725,668 $256,227 $334,421 $1,316,316

Total $2,745,140 $1,186,455 $1,744,737 $5,676,332

Source: Department of Health supplied PBS data Table 114: Dispensing fee by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total




General Ordinary (G2) $844,704 $318,144 $405,941 $1,568,790

Total $2,745,140 $1,186,455 $1,744,737 $5,676,332

Source: Department of Health supplied PBS data Table 115: Dispensing fee by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $1,760,699 $725,560 $1,125,060 $3,611,319 Innovator / Branded $984,441 $460,895 $619,677 $2,065,012 Total $2,745,140 $1,186,455 $1,744,737 $5,676,332 Source: Department of Health supplied PBS data Table 116: Dispensing fee by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


72


Dangerous drug fee by script type

Table 117: Dangerous drug fee by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $41,214 $15,944 $23,527 $80,686

Under $5,773 $1,603 $2,471 $9,847

Total $46,988 $17,547 $25,998 $90,533

Source: Department of Health supplied PBS data Table 118: Dangerous drug fee by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total



General Safety Net (G1) $597 $276 $358 $1,231


Total $46,988 $17,547 $25,998 $90,533

Source: Department of Health supplied PBS data Table 119: Dangerous drug fee by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $9,725 $2,584 $3,108 $15,417 Innovator / Branded $37,263 $14,963 $22,890 $75,116 Total $46,988 $17,547 $25,998 $90,533 Source: Department of Health supplied PBS data Table 120: Dangerous drug fee by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $742 $803 $1,865 $3,411 Non closing the gap (NON – CTG) $46,246 $16,744 $24,133 $87,122 Total $46,988 $17,547 $25,998 $90,533 Source: Department of Health supplied PBS data

73


Fee paid under the Premium Fee Dispensing initiative by script type

Table 121: Fee paid under the Premium Fee Dispensing initiative by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $165,723 $75,425 $113,105 $354,253

Under $0 $0 $0 $0

Total $165,723 $75,425 $113,105 $354,253

Source: Department of Health supplied PBS data Table 122: Fee paid under the Premium Fee Dispensing initiative by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total



General Safety Net (G1) $2,236 $931 $1,476 $4,642

General Ordinary (G2) $1,027 $631 $378 $2,036

Total $165,723 $75,425 $113,105 $354,253

Source: Department of Health supplied PBS data Table 123: Fee paid under the Premium Fee Dispensing initiative by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $165,272 $75,057 $112,687 $353,016 Innovator / Branded $451 $368 $418 $1237 Total $165,723 $75,425 $113,105 $354,253 Source: Department of Health supplied PBS data Table 124: Fee paid under the Premium Fee Dispensing initiative by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $2,988 $8,220 $7,061 $18,268 Non closing the gap (NON – CTG) $162,735 $67,205 $106,044 $335,985 Total $165,723 $75,425 $113,105 $354,253 Source: Department of Health supplied PBS data

74


Electronic prescription fee by script type

Table 125: Electronic prescription fee by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $12,370 $6,566 $10,203 $29,139

Under $4,811 $1,793 $2,597 $9,200

Total $17,181 $8,358 $12,800 $38,339

Source: Department of Health supplied PBS data Table 126: Electronic prescription fee by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total





Total $17,181 $8,358 $12,800 $38,339

Source: Department of Health supplied PBS data Table 127: Electronic prescription fee by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $10,447 $5,007 $8,454 $23,908 Innovator / Branded $6,734 $3,351 $4,346 $14,432 Total $17,181 $8,358 $12,800 $38,339 Source: Department of Health supplied PBS data Table 128: Electronic prescription fee by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $106 $422 $692 $1,220 Non closing the gap (NON – CTG) $17,075 $7,936 $12,108 $37,119 Total $17,181 $8,358 $12,800 $38,339 Source: Department of Health supplied PBS data

75


Wastage amount by script type

Table 129: Wastage amount by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $2,336 $1,178 $1,699 $5,213

Under $1,624 $356 $279 $2,259

Total $3,961 $1,534 $1,978 $7,472

Source: Department of Health supplied PBS data Table 130: Wastage amount by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Concessional Ordinary (C1) $1,772 $906 $1,366 $4,045


General Ordinary (G2) $1,746 $490 $394 $2,630

Total $3,961 $1,534 $1,978 $7,472

Source: Department of Health supplied PBS data Table 131: Wastage amount by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $2,498 $912 $812 $4,222 Innovator / Branded $1,463 $621 $1,166 $3,250 Total $3,961 $1,534 $1,978 $7,472 Source: Department of Health supplied PBS data Table 132: Wastage amount by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $60 $189 $34 $283 Non closing the gap (NON – CTG) $3,901 $1,344 $1,944 $7,189 Total $3,961 $1,534 $1,978 $7,472 Source: Department of Health supplied PBS data

76


Container fee by script type

Table 133: Container fee by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $481 $270 $180 $930

Under $496 $116 $92 $705

Total $977 $386 $272 $1,635

Source: Department of Health supplied PBS data Table 134: Container fee by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total


Concessional Ordinary (C1) $417 $232 $146 $795


General Ordinary (G2) $502 $126 $97 $725

Total $977 $386 $272 $1,635

Source: Department of Health supplied PBS data Table 135: Container fee by medicine type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Generic $792 $319 $220 $1,331 Innovator / Branded $185 $67 $52 $304 Total $977 $386 $272 $1,635 Source: Department of Health supplied PBS data Table 136: Container fee by Closing the gap PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Closing the gap (CTG) $17 $70 $8 $95 Non closing the gap (NON – CTG) $960 $315 $264 $1,540 Total $977 $386 $272 $1,635 Source: Department of Health supplied PBS data

77


PBS discount data – Detailed data from the DOH

Patient contribution book

Table 137: Patient contribution book - Allowed cost to patient PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $50,000 0 1 1 2 $50,001 - $100,000 0 1 5 6 $100,001 - $150,000 2 0 4 6 $150,001 - $250,000 2 0 2 4 $250,001 - $550,000 2 3 2 7 More than $550,000 3 0 0 3 Total 9 5 14 28 Source: Department of Health supplied PBS data

Patient contribution actual

Table 138: Patient contribution actual - Actual cost charged to patient PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Up to $100,000 0 2 5 7 $100,001 - $200,000 2 0 6 8 $200,001 - $500,000 4 1 3 8 More than $500,000 3 2 0 5 Total 9 5 14 28 Source: Department of Health supplied PBS data

78


PBS discount data – Script type level detailed data from the DOH

Table 139: Total number of PBS scripts dispensed by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Concessional Safety Net (C0) 44,825 24,635 44,906 114,366

Concessional Ordinary (C1) 199,786 108,691 145,030 453,507

General Safety Net (G1) 3,045 1,872 3,017 7,934

General Ordinary (G2) 115,357 50,408 58,512 224,277

Total 363,013 185,606 251,465 800,084

Source: Department of Health supplied PBS data Table 140: Total number of PBS scripts dispensed by discount type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$1 discount 67,437 973 3,914 72,324

Discount < $1 19 2 40 61

No discount 295,171 184,631 247,471 727,273

Other 386 0 40 426

Total 363,013 185,606 251,465 800,084


Benefit amount

Table 141: Benefit amount by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $14,647,589 $5,542,754 $6,833,827 $27,024,170

Under $0 $0 $0 $0

Total $14,647,589 $5,542,754 $6,833,827 $27,024,170


79


Table 142: Benefit amount by discount type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$1 discount $3,030,815 $43,760 $169,173 $3,243,749

Discount < $1 $688 $19 $673 $1,380

No discount $11,607,499 $5,498,975 $6,663,387 $23,769,860

Other $8,588 $593 $9,181

Total $14,647,589 $5,542,754 $6,833,827 $27,024,170


Patient contribution booked

Table 143: Patient contribution booked by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $1,805,484 $858,792 $1,142,154 $380,6430

Under $1,708,187 $722,561 $843,523 $3,274,271

Total $3,513,670 $1,581,353 $1,985,677 $7,080,701

Source: Department of Health supplied PBS data Table 144: Patient contribution booked by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total




General Ordinary (G2) $2,275,202 $958,927 $1,131,555 $4,365,685

Total $3,513,670 $1,581,353 $1,985,677 $7,080,701


80


Table 145: Patient contribution booked by discount type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$1 discount $439,175 $6,194 $25,925 $471,294

Discount < $1 $278 $12 $339 $630

No discount $3,071,534 $1,575,147 $1,959,195 $6,605,876

Other $2,682 $218 $2,900

Total $3,513,670 $1,581,353 $1,985,677 $7,080,701


Patient contribution actual

Table 146: Patient contribution actual by co-payment type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Over $1,786,237 $886,790 $1,152,325 $3,825,352

Under $2,141,929 $875,199 $992,673 $4,009,801

Total $3,928,166 $1,761,988 $2,144,998 $7,835,152

Source: Department of Health supplied PBS data Table 147: Patient contribution actual by patient type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total




General Ordinary (G2) $2,709,365 $1,112,375 $1,276,605 $5,098,345

Total $3,928,166 $1,761,988 $2,144,998 $7,835,152


81


Table 148: Patient contribution actual by discount type PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

$1 discount $382,822 $5,383 $22,752 $410,956

Discount < $1 $312 $12 $392 $717

No discount $3,542,636 $1,756,594 $2,121,646 $7,420,875

Other $2,396 $208 $2,604

Total $3,928,166 $1,761,988 $2,144,998 $7,835,152


82


Stated PBS data from survey

The following results are based on pharmacies that did not give permission to use their PBS data held by the Department of Health.

Number of PBS scripts processed

Table 149: Number of PBS scripts processed by the pharmacy in 2015-16 PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Upto 20,000 scripts 1 2 1 4 20,001 - 50,000 scripts 2 2 0 4 More than 50,000 scripts 0 3 0 3 Total 3 7 1 11 Question: Q37.How many PBS scripts did this pharmacy process in the 2015-16 financial year?

Proportion of PBS scripts by script type

Table 150: Proportion of PBS scripts – Concessional scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

21% - 30% 0 1 0 1 31% - 40% 1 2 0 3 41% - 50% 0 3 0 3 51% - 60% 1 1 0 2 More than 60% 1 0 0 1 Total 3 7 0 10 Question: Q38.Could you provide an estimate of the proportion of types of PBS scripts processed in the 2015-16 financial year?

83


Table 151: Proportion of PBS scripts – Safety net scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Upto 10% 0 2 0 2 11% - 20% 1 3 0 4 21% - 30% 1 2 0 3 31% -40% 1 0 0 1 Total 3 7 0 10 Question: Q38.Could you provide an estimate of the proportion of types of PBS scripts processed in the 2015-16 financial year? Table 152: Proportion of PBS scripts – General scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Upto 10% 3 4 0 7 11% - 20% 0 2 0 2 Total 3 6 0 9 Question: Q38.Could you provide an estimate of the proportion of types of PBS scripts processed in the 2015-16 financial year? Table 153: Proportion of PBS scripts – Under co payment scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Upto 10% 1 1 0 2 11% - 20% 2 2 0 4 21% - 30% 0 1 0 1 31% - 40% 0 2 0 2 Total 3 6 0 9 Question: Q38.Could you provide an estimate of the proportion of types of PBS scripts processed in the 2015-16 financial year?

84


Number of PBS scripts processed versus previous years

Table 154: Number of PBS scripts processed vs previous years PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Number of PBS scripts processed was less than 2014-15 financial year

0 4 0 4

Number of PBS scripts processed was the same as 2014-15 financial year

1 0 0 1

Number of PBS scripts processed was more than 2014-15 financial year

1 3 0 4

Not sure 1 0 0 1 Total 3 7 0 10 Question: Q39. Still thinking about the number of PBS scripts processed by this pharmacy in the 2015-16 financial year, would you say.

Additional fees for co-pay scripts

Table 155: Additional fees for co-pay scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Yes 2 1 0 3 No 1 6 0 7 We do not process any co-pay PBS scripts

0 0 0 0

Total 3 7 0 10 Question: Q40. For PBS scripts under the co-payment, did you charge any additional fees for any of these in the 2015-16 financial year?

$1 discount for co-pay scripts

Table 156: $1 discount for co-pay scripts PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Yes 3 7 0 10 No 0 0 0 0 We do not process any $1 discount co-pay PBS scripts

0 0 0 0

Total 3 7 0 10 Question: Q41. Do you offer the $1 discount to any co-payment PBS scripts in the 2015-16 financial year?

85


Proportion of revenue from generic medicines

Table 157: Proportion of revenue from generic medicines PhARIA 1 PhARIA 2

and 3 PhARIA 4,5

and 6 Total

Upto 10% 1 1 0 2 21% - 30% 1 2 0 3 31% - 40% 1 1 0 2 41% - 50% 0 2 0 2 71% - 80% 0 1 0 1 Total 3 7 0 10 Question: Q44. What is the proportion of revenue generated from generic medicines sold by this pharmacy in the 2015-16 financial year?

86


Appendix B: Self-completion questionnaire and contact materials Self-completion online questionnaire

Introduction to main survey Thank you for your participation in this survey. We know that your time is precious. The independent Pharmacy Review Panel has commissioned Hall and Partners Open Mind to gather data from a broad cross-section of pharmacies to enable a comprehensive financial analysis of the sector. Understanding the relationship between financial drivers and barriers across pharmacies of all types and locations will allow the Review to better understand community pharmacy’s current and possible future operating environments. Your assistance will ensure the Panel has the best chance of making the most relevant recommendations that will help community pharmacy continue to serve the health needs of Australians. Participation in this survey is voluntary and completely confidential; and, unless you specify otherwise, all data provided will be anonymised at the close of the survey period. This survey includes questions around this pharmacy’s finances, including income, expenses and government remuneration. It is desirable that you include exact values for these measures to increase the accuracy of the analysis. However, should some information not be available, please include best estimates instead. For any enquiries about the survey, please contact [CONTACT] Australian Government Statistical Clearing House Approval Number: [02532-01] Please click 'next' to continue.

1 Pharmacy profiling When completing this survey, please only include data for [INSERT PHARMACY NAME AND LOCATION] for the 2015-16 financial year. [INTRO] This first series of questions is about the characteristics of this pharmacy and will assist us in understanding the financial characteristics of different types of pharmacies. Pharmacy type Ask all. Single response Q1 Which of the following best describes this pharmacy?

Select one answer.

1. Independent community pharmacy that is not affiliated with any group 2. Independent community pharmacy that is affiliated with a buying group 3. Community pharmacy that is affiliated with banner group 4. Discount or warehouse style pharmacy 5. Friendly society

Method of operation Ask all. Single response Q2 Which of the following describes the method of operation of this pharmacy?

Select one answer.

1. Owner operated 2. Manager operated

Location type Ask if 1, 2 or 3 at Q1. Single response.

87


Q4 How would you describe this pharmacy’s location? Is it in …. Select one answer.

1. Hospital pharmacy 2. Isolated (1-4 shops together) 3. Medical centre 4. Non-regional shopping centre 5. Neighbourhood shopping centre 6. Regional shopping centre 7. Strip shopping centre

Trading hours Ask all. Numeric response. Integer range 1-168. Q5 . For how many hours does this pharmacy trade over a 7-day week?

Enter in number of hours up to maximum of 168, round to nearest hour.

Out of hours trading Ask all except those entering 168 at Q5. Multiple response. Q6 Is this pharmacy open… Select all that apply

1. Early mornings (i.e. prior to 9am on any day of the week) 2. Late nights (i.e. closes after 7pm more than once a week) 3. On Saturdays 4. On Sundays 5. Public Holidays

Store size - overall Ask all. Numeric Response. Integer 0 -5000 Q7 What is the total floor space size of this pharmacy (including the dispensary) (1m2 is 10.8

feet2)? Type in the box below. _______________ Square metres (sq. m)

88


Store size – section allocation Ask all. Numeric response per tow. Total adds to 100 Q8 Of the total pharmacy floor space, what is the proportion given to?

Type in the box below. (Must add to 100)

%

1. Dispensing prescription medicines

2. OTC medicines and therapeutic goods

3. Other retail

4. Private consulting rooms or spaces

5. Any other purpose (storage, office, etc.)

TOTAL AUTO CALCULATE

Customer count Ask all. Numeric response. Q9 How many customer sales interactions did this pharmacy have in 2015-16 financial year?

Type in the box below.

Number

Customer numbers in 2015-16

Customer proportion by purpose Ask all. Numeric response. Q10 Could you provide an estimate of the proportion of customers served for the purpose of?


%

1. Prescription medicines only

2. Prescription medicine and retail/OTC sales

3. Retail/OTC sales only

2 Staffing levels We'd now like to ask you a number of questions about staff and resource levels in this pharmacy.

89


Number of employees Ask all. Numeric response. Max 10,000. Q11 How many employees does this pharmacy have and how many hours in total do they

work per week? Please include all currently employed staff. Please ensure the total number of Full time Staff is at least 1; and the total number of Part-time/casual staff is at least one.

Number of full

time staff

Number of part time

and casual staff

Total hours worked per week of all staff at this

level

% of time staff at this level spend

in dispensary

1. Proprietors/owners

2. Managers (Actually employed as a manager role and be responsible for the day to day control of business)

3. Pharmacists in charge

4. Other qualified staff

5. Dispensary assistant (Pharmacy Assistant Grade 3 or 4, actually working in the Dispensary.)

6. Other pharmacy assistants and staff

Total AUTO SUM

AUTO SUM AUTO SUM AUTO SUM

Number of owners Ask all. Numeric response Q12 How many owners does this pharmacy have? (Note, ownership is defined as 20% or more

share of a pharmacy) Type your answer in the box below.

1. 1 owner 2. 2 owners 3. 3 owners 4. 4 owners 5. 5 owners

Number of weeks spent by each owner Ask all. Numeric response. Q13 How many weeks per year does each of the owners of this pharmacy work at this

pharmacy (Note, ownership is defined as 20% or more share of a pharmacy? Type your answer in the box below.

Number of weeks worked

Owner 1

Owner 2

Owner 3

Owner 4

Owner 5

90


3 Business revenue Still thinking about the 2015-16 financial year, we'd now like to ask you a few questions about this pharmacy’s income from sales, government remuneration and other sources. Revenue Ask all. Numeric response in column 1. Tick box for column 2 Force response Q14 Please type in the pharmacy’s annual revenue (turnover) in 2015-16 from

Type your answer in the box below. Note, the sum of these should be the pharmacy’s total annual revenue for 2015-16.

$ value (include

GST) Tick if this amount

excludes GST

1. Total Sales (including dispensary, OTC and retail)

2. All other sources (including revenue from incentives, remuneration and fees received for services)

TOTAL ANNUAL REVENUE 2015-16 AUTO CALCULATE

1 + 2

Revenue Ask all. Numeric response. Force response Q15 Thinking of sales of private prescriptions from this pharmacy in 2015-16 financial year.

Please type in the number of private prescriptions sales and their value Type your answer in the box below.

1. Sales from private prescriptions (total number)

2. Value of all private prescriptions ($ value ex GST)

Financial remuneration for services Ask all. Multiple response. Randomise all except code 10. Code 10 to be exclusive. Q16 For which of the following government-supported pharmacy services did you receive

remuneration in the 2015-16 financial year? Select all that apply.

1. Dose Administration Aids 2. Clinical interventions 3. Staged supply 4. Home Medicines Review 5. Medscheck 6. Diabetes medscheck 7. Residential Medication Management Review 8. QUM 9. Did not receive remuneration for any of these in 2015-16 10. Don’t know

91


Financial remuneration – amount Ask if selected 1 to 8 at Q16. Multiple response. Show all the codes selected at Q16 Q17 And for each of the following government supported services, how much remuneration

did you receive from the government in the 2015-16 financial year? Please enter actual total annual remuneration from each or estimated to the best of your ability. If you do not have an itemised breakdown by services, please select don’t know for each and enter a value for the total amount.

SHOW ALL SELECTED AT Q16 $ value (include

GST) Tick if excludes

GST Remuneration value unknown

1. Dose Administration Aids

2. Clinical interventions

3. Staged supply

4. Home Medicines Review

5. Medscheck

6. Diabetes medscheck

7. Residential Medication Management Review

8. QUM service

9. [IF DK at 1-8] Total amount of government remuneration from supported services

TOTAL GOVERNMENT REMUNERATION FROM THESE SERVICES [DONOT SHOW]

AUTO SUM ex 9

Remuneration for payments or allowances Ask all. Multiple response. Randomise all except code 15 and 16. Code 15 and 16 to be exclusive. Q18 Which of the following government allowances and support payments did you claim

remuneration for in the 2015-16 financial year? Select all that apply.

1. Rural and Remote Allowance 2. Continuing Professional Education Allowance 3. Emergency Locum Service 4. Intern Incentive Allowance for Rural Pharmacies 5. Rural Intern Training Allowance 6. Rural Pharmacy Liaison Officer Programme 7. Rural Pharmacy Maintenance Allowance 8. Rural Pharmacy Scholarship Scheme 9. Rural Pharmacy Student Placement and Administrative Support 10. Aboriginal and Torres Strait Islander Pharmacy Assistant Traineeship and Scholarship

Schemes 11. QUMAX – Quality Use of Medicines Maximised for Aboriginal & Torres Strait Islander

People 12. S100 Pharmacy Support Allowance 13. Pharmacy Trial Programme 14. E-Health Programme (Electronic Prescription Fee) 15. Did not receive any of these payments or allowances in 2015-16 16. Don’t know

92


Remuneration for payments or allowances– amount Ask if selected 1 to 14 at Q18. Multiple response. Show all the codes selected at Q18 Q19 And thinking about the following government allowances and support payments you

have claimed, how much remuneration did you receive for these in total in the 2015-16 financial year? (Please do not include any remuneration for dispensing PBS medicines) Please enter actual total annual revenue from these or estimated to the best of your ability.

SHOW ALL SELECTED AT Q18 $ value

(include GST)

Tick if excludes

GST

Remuneration value

unknown

1. Rural and Remote Allowance

2. Continuing Professional Education Allowance

3. Emergency Locum Service

4. Intern Incentive Allowance for Rural Pharmacies

5. Rural Intern Training Allowance

6. Rural Pharmacy Liaison Officer Programme

7. Rural Pharmacy Maintenance Allowance

8. Rural Pharmacy Scholarship Scheme

9. Rural Pharmacy Student Placement and Administrative Support

10. Aboriginal and Torres Strait Islander Pharmacy Assistant Traineeship and Scholarship Schemes

11. QUMAX – Quality Use of Medicines Maximised for Aboriginal & Torres Strait Islander People

12. S100 Pharmacy Support Allowance

13. Pharmacy Trial Programme

14. E-Health Programme (Electronic Prescription Fee)

TOTAL ALLOWANCES AND SUPPORT PAYMENTS $AUTOSUM

Importance of RPMA remuneration Ask if code 7 at Q18. Single response. Q20 How reliant is this pharmacy on the Rural Pharmacy Maintenance Allowance for its

financial sustainability? Select one answer.

1. Completely reliant (would not survive without it) 2. Somewhat reliant 3. Not at all reliant 4. Not sure

Proportion of revenue from RPMA Ask if code 7 at Q18. Numeric response. Q21 And how much does the Rural Pharmacy Maintenance Allowance contribute to the overall

revenue of the pharmacy? Type your answer in the box below.

Proportion of revenue from Rural Pharmacy Maintenance Allowance %

93


Service to nursing home Ask all. Single Response. Q22 Does this pharmacy service any nursing homes? Select one answer.

1. Yes 2. No

Number of beds serviced Ask if code 1 at Q22. Numeric Response Q23 How many beds in total do you service at nursing homes? Type in the box below.

Number of beds serviced

Number of beds serviced Ask if code 1 at Q22. Numeric Response Q24 On average, how much does this pharmacy charge or get paid by nursing homes per

bed? Please include actual value or enter estimate to you best of your ability.

$ value (include GST) Tick if excludes

GST

Average charge per bed

Fee for services offered Ask all. Multiple response Q25 Which of the following services does this pharmacy provide to customers for a fee? Select all that apply.

1. Absence from work certificate provision 2. Adherence/compliance support 3. Aged care services 4. Arthritis services 5. Blood pressure and cardiovascular disease risk assessment 6. Bone density testing 7. Cardiovascular disease services 8. Compounded medicines 9. Compression garment fitting for DVT 10. Diabetes management services (NDSS) 11. Diabetes risk assessment 12. Dose administration aids 13. Health advice 14. Health aids and equipment provision 15. Home delivery services 16. Immunisation services (nurse-led) 17. INR (anticoagulant therapy) monitoring 18. Maternal and child health clinics 19. Mental health support services 20. Minor ailment treatment 21. Needle and syringe programs 22. Opioid dependence treatment 23. Pain management services 24. Palliative support services 25. Point of care testing cholesterol and blood glucose 26. Respiratory services (Asthma,COPD) 27. Self-test screening: bowel cancer and chlamydia 28. Sleep apnoea services 29. Smoking cessation 30. Staged supply 31. Weight management and nutrition services 32. Other (please specify)

94


Fee for services offered - charges Ask if any 1-31 selected at Q25. Single response Q26 Do you maintain records of the revenue generated by this pharmacy from the provision

of these services (i.e. customer payments, not government remuneration)?

1. Yes 2. No 3. Don’t know

Revenue from fee for services Ask if any 1-31 selected at Q25 and if Code 1 at Q26. Numeric response Q27 What was the total revenue generated by this pharmacy from these service fees in the

2015-16 financial year? Please only include fees paid by customers, not any government remuneration you received for these services Please enter actual total revenue or estimate to the best of your ability.

$ value

(include GST) Tick if

excludes GST

1. REVENUE FROM FEES FOR SERVICES

4 Costs and expenses This section seeks information on the costs and other expenses that this pharmacy incurred in the 2015-16 financial year.

Expenses Ask all. Numeric response. Q28 Please enter the value of the following for this pharmacy in the 2015-16 financial year.

Provide a best estimate if actual values are not known.

$ value (include

GST) Tick if

excludes GST

COST OF GOODS SOLD

1. Cost of goods sold (i.e. the cost to purchase all of the items sold in the financial year including dispensary, OTC and retail items)

EXPENSES

2. Wages and staff costs (including superannuation and payroll tax, do not include any wages or salary drawn from the business by the owner)

3. Rent and occupancy costs (including rent, fit out, all utility bills, shopping centre fees, etc)

4. Computers, technology and information system costs

5. Advertising, promotion and marketing group fees

6. Training and professional development expenditure including memberships to professional bodies

7. Cost of servicing debt (including loan and interest repayments)

8. Accountancy and Bookkeeping costs

9. Any other expenditure in 2015-16 not accounted for above (e.g. other outgoings, service fees or licenses, insurances, one-off

95


$ value (include

GST) Tick if

excludes GST

expenses, motor vehicles expenses, capital expenditure, depreciation, etc)

TOTAL EXPENDITURE AUTO SUM COLUMN VALUES

Owner’s salary Ask all. Numeric response. Q29 What was the total of the owner/s notional salary and drawings for this pharmacy in the

2015-16 financial year? Type your answer in the box below.

$ value (include

GST) Tick if

excludes GST

Owners notional salary and drawings

Percentage revenue used for debt servicing Ask all. Numeric response. Integer 0 -100 Q30 In 2015-16, what was the percentage of revenue used to service loans or debts of the

pharmacy? Type your answer in the box below.

%_____________ of overall revenue

Profit metric Ask all. Numeric response. Force response Q31 What was the pharmacy’s earnings before, interest, taxes, depreciation and amortisation

(EBITDA) in 2015-16? Note, owner/s notional salary and drawings should be excluded from earnings calculations. Type your answer in the box below.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) $

Wholesaler relationships Ask all. Numeric response

Q32 How many different wholesalers does this pharmacy deal with that supply PBS

medicines to your pharmacy?

_____________ Wholesaler relationships - proportion of discount Ask all. Single response.

Q33 On average in 2015-16 financial year, what was the % value of the rebate/discount on

PBS medicines that this pharmacy received from wholesalers or suppliers?

1. I do not receive any rebates or discounts on PBS medicines from wholesalers or suppliers 2. Up to 1% 3. 1% - 2% 4. 2% - 3% 5. 3% - 4% 6. 4% - 5% 7. 5% - 6% 8. 6% - 7% 9. 7% - 8% 10. 8% or more

96


97


Wholesaler relationships - proportion of discount vs previous years Ask if code 2 – 9 at Q33. Single response.

Q34 Is the amount of rebate/discount on PBS medicines that this pharmacy received in

2015 -16 financial year from wholesalers or suppliers…

1. Less than amount received in 2014/15 financial year 2. Same as amount received in 2014/15 financial year 3. More than amount received in 2014/15 financial year 4. Not sure

Wholesaler relationships Ask all. Single response.

Q35 How many manufacturers supply PBS medicines to your pharmacy through a direct

supply relationship?

5 Re-contact/Follow-up

Before we close, we just have few more questions about PBS…. Permission to link PBS data Ask all. Single Response. Q36 The Review would like to link your survey responses to PBS data for this pharmacy held

by the Department of Health. This will help to develop a more comprehensive financial analysis to inform the Review’s recommendations. The results will be kept anonymous and only provided to the Review in this format and your contact details will not be linked to your survey results

1. Yes, I am willing for this pharmacy’s PBS data to be matched for analysis 2. No, I would not like this pharmacy’s PBS data to be matched for analysis – note, if this

is the case, we have just a few more questions to gather some of this data now

Number of PBS scripts processed Ask if code 2 at Q36. Numeric response Q37 How many PBS scripts did this pharmacy process in the 2015-16 financial year?

Type your answer in the box below.

% of PBS scripts by type Ask if code 2 at Q36. Numeric response Q38 Could you provide an estimate of the proportion of types of PBS scripts processed in the

2015-16 financial year? Type in the box below.

%

1. Concessional

2. Safety-net

3. General

4. Under co-pay

TOTAL AUTO SUM

98


Number of PBS scripts processed vs previous year Ask if code 2 at Q36. Single response Q39 Still thinking about the number of PBS scripts processed by this pharmacy in the 2015-

16 financial year, would you say… Select one that applies.

1. Number of PBS scripts processed was less than 2014-15 financial year 2. Number of PBS scripts processed was the same as 2014-15 financial year 3. Number of PBS scripts processed was more than 2014-15 financial year 4. Not sure

Additional fees for co-pay scripts Ask if code 2 at Q36. Single response Q40 For PBS scripts under the co-payment, did you charge any additional fees for any of

these in the 2015-16 financial year? Select one that applies.

1. Yes 2. No 3. We do not process any co-pay PBS scripts

$1 discount for co-pay scripts Ask if code 2 at Q36 and not code 3 at Q40. Single response Q41 Do you offer the $1 discount to any co-payment PBS scripts in the 2015-16 financial

year? Select one that applies.

1. Yes 2. No 3. We do not process any co-pay PBS scripts

$1 discount by type of script Ask if code 2 at Q36 and code 1 at Q41. Numeric response. Integer 0 -100. Q42 What is the proportion of $1 discount on PBS co-payment scripts by?


%

1. Concessional

2. Safety-net

3. General

TOTAL AUTO SUM

Generics vs Branded medicines sold Ask if code 2 at Q36. Numeric response. Integer 0 -100. Q43 What is the proportion of generics vs branded medicines sold by this pharmacy in the

2015-16 financial year? Type in the box below.

%

1. Generic medicines

2. Branded medicines

TOTAL AUTO SUM

99


% revenue from generic medicines Ask if code 2 at Q36. Numeric response. Integer 0 - 100 Q44 What is the proportion of revenue generated from generic medicines sold by this

pharmacy in the 2015-16 financial year? Type in the box below.

% of total revenue

Revenue from generic medicines

Follow up question – Intention for re-contact Ask all. Single Response. Q45 Finally, the Review Panel may wish to re-contact participating pharmacies to get further

insight into pharmacy revenue and cost drivers. Are you willing to be re-contacted to participate in further consultation? Your contact details will not be linked to your survey results

1. Yes, I am willing to be contacted

[Please type in your contact details a. First name b. Last name c. Best number for us to contact you d. Email address]

2. No, thanks Thank you for your valuable time. We appreciate your assistance and input to the Review. Please click the submit button below to finish the survey

100


Departmental Primary Approach Letter

Review of Pharmacy MDP 900

GPO Box 9848 CANBERRA ACT 2601

[email protected]

Review of Pharmacy Remuneration and Regulation Quantitative Financial Survey of Pharmacies

Dear Pharmacy Owner / Manager, I write to you as Chair of the independent Panel conducting the Review of Pharmacy Remuneration and Regulation. I wish to seek your support for an upcoming financial survey of community pharmacies, which the Review Panel has commissioned to inform a comprehensive financial analysis of the sector. As part of the Sixth Community Pharmacy Agreement, the Review has been tasked with making recommendations on pharmacy remuneration, regulation, and other specific arrangements relating to the dispensing and supply of medicines and other services under the Pharmaceutical Benefits Scheme. Further information regarding the Review is available at www.health.gov.au/pharmacyreview. The Review Panel is committed to making recommendations that are built on a solid foundation of evidence. For this reason, the Review invites you to complete an online survey, which aims to gather financial data regarding pharmacy remuneration in Australia. All data collected will be kept strictly confidential and will only be used by the Review Panel to inform our recommendations. Should you wish to participate in this survey, a unique survey link for this pharmacy is provided below: [Unique Survey Link] Please enter this address in your web browser and follow the onscreen instructions to complete the survey for your pharmacy. If you have already received an email invite to this survey and have consequently completed it, please ignore this link. The survey will be available to complete until the end of 16th January 2017. In the coming weeks the Review’s survey partner, Hall & Partners Open Mind, will contact your pharmacy to confirm that this invitation has been received and confirm whether you wish to participate in the online survey.

http://www.health.gov.au/pharmacyreview

101


I understand that your time is extremely valuable and that this request comes at a busy period for your pharmacy. However, your assistance is vitally important in ensuring that the Review makes recommendations that appropriately reflect the challenges and opportunities faced by your pharmacy. Whereas the Panel is aware of a number of previous financial studies of community pharmacy, we feel these have not provided the level of detail (pharmacy location and business model) or reach (coverage of all pharmacy types and membership bases) to build the best understanding of the current, and possible future, operating environments for pharmacy in Australia. It will be important to the success of the Review that we continue to get broad input and engagement from community pharmacy. With your support, I feel we stand the best chance of obtaining the most relevant financial analysis to inform the Review’s recommendations on the future of community pharmacy in Australia. Yours faithfully Professor Stephen King Chair, Review of Pharmacy Remuneration and Regulation Australian Government Statistical Clearing House Approval Number: [02532-01]

102


Phone contact script

Good morning/afternoon,

[IF CONTACT NAME LISTED] May I please speak with [CONTACT NAME]?

[IF CONTACT NAME NOT LISTED OR CONTACT NAME INCORRECT] May I please speak with the Pharmacy Owner or Manager? I am calling on behalf of the independent Panel conducting the Review of Pharmacy Remuneration and Regulation. Recently your pharmacy would have received a letter from the Review Panel’s Chair, Professor King, informing you about an important upcoming financial survey of community pharmacies. If you haven’t received it yet, you should receive this very soon. Hall & Partners Open Mind is a social research company that is conducting this online survey on behalf of the Review Panel and the Department of Health to develop a comprehensive financial analysis of the pharmacy sector. This survey will ensure the Review’s recommendations appropriately reflect the challenges and opportunities faced by pharmacies such as [INSERT NAME OF PHARMACY]. The survey is online and we would like to send you the link and further information about the survey via email. Would you be interested in receiving this?

1. NO – CHECK IF THEY WOULD LIKE THE LINK READ OUT OVER PHONE AND

DO SO IF YES, IF NOT, THANK AND CLOSE

2. YES – GO TO Q2

Q2 [IF YES AT Q1] Great! What is the best email address for us to send the survey invitation to? RECORD

Q3. Can I just reconfirm your email address? [READ OUT AND RECORD ANY CORRECTIONS] Q4 Can you please confirm your name and this pharmacy’s name and address? READ OUT

a. CONTACT NAME: [READ FROM CONTACT LIST, RECORD ANY CORRECTIONS] b. PHARMACY NAME: [READ FROM CONTACT LIST, RECORD ANY CORRECTIONS] c. PHARMACY ADDRESS: [READ FROM CONTACT LIST, RECORD ANY

CORRECTIONS] Thank you very much for sparing a few minutes. You will receive an email from us shortly. We look forward to receiving your feedback. IF ANY QUESTIONS ABOUT THE PHARMACY GUILD: Please contact your local branch of The Pharmacy Guild and they will be able to answer any questions you may have.

IF QUERY SOURCE OF CONTACT DETAILS: Your pharmacy has been selected at random from a list of Australian pharmacies supplied by the Australian Government Department of Health and your contact details were acquired from Dun and Bradstreet’s business listings.

103


IF ASKED: the Australian Government Statistical Clearing House Approval Number is 02532-01.

Email survey invitation

Subject line: Financial survey of pharmacies across Australia Dear [INSERT NAME OR Pharmacy Owner/Manager], You have been invited by the Department of Health to complete an online financial survey of pharmacies for the independent Review of Pharmacy Remuneration and Regulation. We understand that your time is extremely valuable and that this request comes at a busy period for your pharmacy. However, your assistance is vitally important in ensuring that the Pharmacy Review Panel makes recommendations that are built on evidence that appropriately reflects the challenges and opportunities faced by the breadth of Australian pharmacies. As part of the Sixth Community Pharmacy Agreement, the independent Review Panel has been tasked with making recommendations on pharmacy remuneration, regulation, and other specific arrangements relating to the dispensing and supply of medicines and other services under the Pharmaceutical Benefits Scheme. The financial survey of pharmacies will help the Review Panel build the best understanding of the current, and possible future, operating environments for pharmacy in Australia. The online survey is relatively simple – it should take around 30 minutes to complete once you have all the relevant financial information at hand. Taking part in this research is voluntary, and all information you provide will remain strictly anonymous. All survey data collected will be de-identified, and only aggregated data will be used by the Review Panel to inform its recommendations. As an incentive for completing the survey, you will be provided with a personalised summary report comparing your pharmacy data with aggregated financial and PBS data from other pharmacies like yours. Here is your unique link to begin the survey: <LINK> Please click on the link and follow the instructions to complete the survey. Please keep this link handy in case you need to exit and return to the survey at any time. The questionnaire will be able to be completed until the end of 16 January 2017. It will be important to the success of the Review that we obtain the most relevant financial analysis to inform recommendations on the future of community pharmacy in Australia. More about this survey

104


The independent Pharmacy Review Panel has commissioned Hall and Partners Open Mind to conduct this survey. Hall and Partners Open Mind is an independent market research company that specialises in conducting surveys of this nature. It is bound by the National Privacy Principles and the Australian Market and Social Research Society Code of Conduct in relation to information security and the provision of data. Your pharmacy name has been provided to Hall & Partners Open Mind by the Australian Government Department of Health and your contact details were acquired from Dun and Bradstreet. If you have any questions about taking part please contact [CONTACTS] Australian Government Statistical Clearing House Approval Number: [02532-01]

Pharmacy Financial Survey · Hall & Partners | Open Mind MEL: +61 (0)3 9662 9200 SYD: +61 (0)2 9925...

Documents

Transcript of Pharmacy Financial Survey · Hall & Partners | Open Mind MEL: +61 (0)3 9662 9200 SYD: +61 (0)2 9925...