Pharmacy businesses no longer profitable

Jun 1, 2023
Scott is the partner responsible for looking after the firm’s healthcare and medical sector clients. Scott also specialises in advising small businesses.
pharmacy businesses no longer profitable

Overview

A survey from the pharmacy negotiator’s annual pressures survey has found that only 7% of pharmacy owners said their business was profitable, with 44% said their business is losing money and 78% are extremely concerned about their business finances. This survey was conducted by the Pharmaceutical Services Negotiating Committee (PSNC) surveyed more than 900 pharmacy owners and head office representatives covering over 6,200 pharmacy premises.

 

Some pharmacies fear for survival

Rising costs and a growing workload are ever increasing the risks of pharmacies collapsing. Some alarming statistics from the survey showed that 16% of pharmacy owners believe that they won’t survive another year and 73% don’t know how much longer the threats to their business can be managed.

The PSNC has warned that if the government continue not be forth coming with support then community pharmacies may be forced into reduce the services they offer in order to survive. Or even worse close their doors for good.

 

Supply chain issues

In last year’s survey 67% of pharmacy owners said that were dealing with supply chain and medicine delivery issues on a daily basis. In 2023, this has increased to 92% demonstrating that supplies are becoming increasing difficult to source. These supply chain issues is increasing risk to patient health with pharmacies struggling to source medication that some patients need.

 

Staff shortages

76% of pharmacies are experiencing staff shortage issues which is due to insufficient funds and staff unavailability. These staff shortages means that existing staff members are struggling to keep up with the growing workload, resulting in increasing risk to patient health.

 

Alarming statistics

The PSNC annual pharmacy pressures survey has unearthed some alarming statistics that demonstrates the sector is in worse shape than most initially feared. Only a small minority of businesses are reporting profits across the sector which demonstrates that these issues are clearly sector wide with almost a sixth of pharmacies believing that they will not survive another year. Therefore, immediate support needs to be provided in order for pharmacies to survive before it’s too late.

 

How can we help?

At Hawsons our dedicated team of pharmacy accountants offer a specialist service to community pharmacists and locum pharmacists. We can assist you with accountancy and taxation needs, utilising our in-depth knowledge and experience in the sector.

We recognise that no two pharmacies are the same and have experience in dealing with pharmacies of varying sizes and ownerships structures.

Scott Sanderson

Partner, Sheffield

ss@hawsons.co.uk

Free initial meeting

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