Way forward for community pharmacy

Guild Chief Executive, Andrew Gaudin, discusses the best way forward for community pharmacy, given the significant change and financial pressures facing our health system.
March 31, 2025 by
Andrew Gaudin

There are a range of current health system leadership changes that influence the shape, nature and extent of progress community pharmacy can reasonably expect, including:

  • the recent change to our Minister of Health. This signals a clear government policy focus to improve health outcomes and seek more timely access and quality healthcare for all New Zealanders to deliver on the 2024-2027 Government Policy Statement on Health
  • HNZ’s ongoing restructuring requirements to deliver on their hard reset and a further $1.1 billion of ongoing annual cost savings over the next two years to achieve a financial break-even budget. This also includes the current recruitment efforts underway to appoint a new Chief Executive to lead HNZ
  • the inevitable slowdown of previous HNZ work programme intentions for community pharmacy because of reduced staff capacity and future work programme uncertainty pending finalising staff restructuring plans.

Tight fiscal constraints with reduced funding capacity to recognise annual cost pressures in the health sector over the next two years will also apply, in accord with the three-year allocation that was announced for Health in Budget 2024.

As is well documented, community pharmacy continues to face increasing financial viability pressures, workforce shortages and supply chain challenges. Conversely, positive opportunities do exist from the current government policy settings to expand the range of publicly funded community pharmacy services.

Within this context, we remain relentlessly focused on supporting and advancing the business and professional needs of community pharmacy – to deliver for members.

Specifically, we are seeking improved and fairer cost pressure recognition to sustain community pharmacy, together with an invest-to-save approach by government in an expanded range of publicly funded community pharmacy services to help keep New Zealanders healthy and well. We will continue working positively with government and key stakeholders to deliver this.

Andrew Gaudin March 31, 2025
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