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Saturday, July 19, 2025

Is your local pharmacy at risk of closure?

AN OPINION PIECE FROM THE PHARMACY GUILD OF AUSTRALIA

You may have heard about the Australian Government’s decision to introduce 60-day dispensing from September 1, 2023.

This 60-day dispensing policy will force pharmacists to dispense a two-month supply of medication to certain patients for a single dispensing fee.

On the surface, 60-day dispensing may seem beneficial, but according to a recent Technical Report written by Tulipwood Advisory Pty Ltd and the Relational Insights Data Lab at Griffith University, the implementation of 60-day dispensing will have a range of  significant negative consequences.

Let’s take a look at why this issue is so important, the repercussions of rushing this policy, and why many are asking the Government to rethink its decision on 60-day dispensing.

The importance of dispensing fees

Pharmacies use dispensing fees to run their business, stay open after hours and at weekends when GPs are closed, and provide services like blood pressure checks, medicine delivery to elderly or housebound people, baby weighing, and after-hours advice when patients have nowhere else to go.

Dispensing fees are crucial to the continued operation of pharmacies, and the reduction of these fees due to 60-day dispensing jeopardises the availability of vital healthcare services for Australia’s most vulnerable communities.

Projected consequences of 60-day dispensing

According to the aforementioned Technical Report, the new measures will cut, on average, between $169,332 and $183,925 per community pharmacy per year over four years, depending on the GP take-up rate trajectory.

The consequences of this reduced income for pharmacies, means 20,818 jobs may be lost in the pharmacy sector, and the likely closure of 665 community pharmacies, whilst putting a further 900 community pharmacies under financial stress.

Furthermore, the reduced income from dispensing fees may force many pharmacies to reduce their open times by an average of 2.5 hours daily. While proponents of 60-day dispensing claim it will be more convenient, convenience becomes redundant when local community pharmacies are forced to reduce hours or, worse, close down entirely.

Additionally, at a time when the rising cost of living is a primary concern for many Australians, the report showed that 60-day dispensing would not provide any long-term fiscal savings to the Australian Government in net terms that could be passed on to the Australian taxpayer in the form of increased public services or reduced taxes.

Disproportionate impact on seniors, rural and remote communities

Many rural and remote areas in Australia already experience limited access to health care compared with major cities, and 60-day dispensing will further deteriorate services, especially in single pharmacy towns or those without a GP.

Seniors and people in aged care are also likely to be disproportionately affected by 60-day dispensing. Older adults often rely on community pharmacies for medication supply and advice, but reduced pharmacy income will compromise the quality and availability of these services, further limiting their options, exacerbating health disparities and hindering access to necessary medications.

The Technical Report also noted that 60-day dispensing will potentially lead to an increase in Australia’s rate of prescription overdose (from increased medicines in the home) and rate of missed diagnosis and misdiagnosis (from less interaction between patients and their GPs and pharmacists).

The need for reevaluation and consultation

The Government’s rushed implementation of the 60-day dispensing policy poses significant risks to the Australian population. The potential loss of jobs, closure of pharmacies, and reduced operating hours would have devastating consequences for communities across the country.

Convenience should not come at the expense of accessible healthcare. Policymakers must reevaluate this decision, engage in transparent discussions with community pharmacies, and develop solutions prioritising the well-being and accessibility of vital healthcare services.

By addressing these concerns, we can ensure the well-being of our most vulnerable – older adults, aged care residents, children, and those in regional and remote areas – who rely heavily on their local community pharmacies, and safeguard the healthcare needs of all Australians.

Visit saveyourlocalpharmacy.com.au to learn more about the impacts and cost of 60-day dispensing.

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