We often hear statements that opening pharmacy ownership has benefits. However, these statements tend to be general and lack evidence.
Competition lowers prices: Whilst this is true in retail, pharmacies are already competing on price for retail products. However, many prices for services
in pharmacies are set by the government, rather than by competition. Price competition can also push pharmacies to cut costs in areas that matter for
patient safety, such as staffing levels.
Greater consumer choice: More providers doesn’t mean meaningful choice if pharmacies cluster in profitable urban areas, withdraw from rural areas,
and are all owned by a small number of retail-focused groups. The community pharmacy sector could end up like the supermarket sector, dominated by a few
large chains, with locally owned service-focused pharmacies gone.
Innovation: Healthcare innovation is driven by practitioners not corporations, funding more services, allowing pharmacists to do more and changing regulations, not just market competition. Strong commercial incentives may lead to innovation focused
on sales or products, rather than improvements in clinical care or patient outcomes.
Efficiency and productivity: Efficiency in healthcare must be balanced with quality and safety. Cost pressures in a highly competitive market can encourage high-volume, low service dispensing models that leave pharmacists with less time for
patient counselling, providing health services and safety checks, risking errors.
Reduced regulatory barriers: Most regulations in pharmacy exist to protect public safety. Ownership rules, licensing requirements, and professional standards help ensure pharmacies are operated with a clinical focus rather than purely commercial incentives.
Alignment with other healthcare sectors: Pharmacy differs from many other healthcare services because it is responsible for the safe dispensing of medicines, which carry significant clinical risk. This is why governments often treat pharmacies as essential health infrastructure, like hospitals or laboratories, rather than as a typical,
product-based competitive market.