Sigma UK Conference 2024 highlights the urgent need for sustainable funding in the pharmacy sector
On Sunday 6th October, Hatul Shah, CEO of Sigma Pharmaceuticals plc, welcomed a very well-attended UK Conference at the London Hilton Heathrow. In his opening speech he referenced the volatility and cash flow challenges that the sector is facing.
Addressing the 200–strong delegation, he said: “For the first time in my career as a contractor, I’m struggling to balance the books. I feel I have the best tools at my disposal to ensure I can operate a lean ship, but the rising overheads and squeezed margins are now at breaking point for my stores.”
Hatul recalled that, at the 2023 Sigma UK Conference, he had spoken about his concern about the potential reduction in the number of community pharmacies in England, and the impact that might have on the sector due to the margin reduction.
“At that time, as business owners we faced several challenges including rising wages, rising interest rates and drug shortages, to name just a few. A year on, we are now realising the sheer impact of underfunding.”
Hatul highlighted that a positive development over the past year is that the problem of underfunding is now being widely publicised, and there is more awareness of issues in community pharmacy.
In a recorded keynote message, Stephen Kinnock MP, the minister of state for care, expressed his concern about pharmacy closures and that finding solutions would not be ‘easy’. He also shared his aspiration for ‘shifting care from hospital to community, from analogue to digital and from sickness to prevention. “Finding a ‘sustainable funding solution’ is a matter of urgency” he said.
Kinnock said that he also looked forward to working with pharmacy stakeholders, not just on how they can solve the problems faced by the sector but also how they might seize new opportunities. He stressed that funding solutions had to match government’s reform ambitions, and services offered by community pharmacies need to be expanded, while also reassuring the conference that the government is looking at this as a matter of urgency.
He said: “I know that this is an innovative sector and has no upper ambition as to the role it can play in supporting the nation’s health. You have shown time and time again how you can deliver. Together we can make a difference and restore an integrated primary care service that we can all be proud of. I look forward to engaging further with the sector as we set out our 10-year plan to make our NHS fit for the future.”
Janet Morrison, CEO of Community Pharmacy England, said that CPE had had ‘productive’ conversations with Mr Kinnock in recent weeks, and that she has hopes for negotiations to be continued as soon as possible.
Previous negotiations with the government that were started in March and were halted due to the general election, have now picked up momentum again, she said.
Morrison said that the Department of Health and Social Care (DH) has “made submissions to the Treasury for the funding shortfalls” for the year and for the 2024/25 spending review, which have not yet been “resolved”.
“We’re waiting for that machinery of government to move forwards,” she said, adding that CPE’s negotiators were “ready to go” once that occurs.
Morrison told the Sigma delegates that the CPE was not “under any illusions” about the immediate financial pressure faced by contractors, as she promised that the negotiator would “secure the stabilisation” of the sector.
Paul Rees, CEO of National Pharmacy Association (NPA), also highlighted the severe challenges faced by community pharmacies, including a 40% real terms funding cut, 1500 closures over the last decade, and three-quarters of pharmacies being in deficit.
He thanked everyone who supported the NPA’s “Save Our Pharmacies” campaign, emphasising the importance of a united sector for achieving results. “We need to be working together. A sector divided doesn’t get results, a sector united gets the message across and is taken seriously.”
Rees noted that the NPA helped influence the Darzi report through both written and verbal submissions, making it clear that the sector has been under-resourced and is under too much pressure.
He said: “If we want community pharmacy to be the heart of primary care, helping with prevention, helping shift care from secondary to primary care, which is what the new government wants, they have to reinvest.”
Matt Turmaine, MP for Watford, also attended and he told delegates that the new government was ‘determined to deliver for community pharmacy in this country’ and ‘is taking matters around community pharmacy seriously’.
Other speakers included Shilpa Shah, Chief Executive Officer of North East London LPC who gave some very useful guidance on how pharmacies can be proactive in terms of securing government funding, and Carol Alexandre, Vice President Accounts & Clinical Trial Suppliers, IQVIA, shared an in-depth look at the sector including the impact that distance selling pharmacies have had.
In closing, Dr Bharat Shah, joint Sigma founder, added that Sigma was soon to be hosting a session at the House of Commons focusing on ways to support healthcare professionals. “We want to move forward in collaboration with the NHS because we all work for the patients. We should not be working in silos,” he said.
The conference was well-received, with delegates learning a great deal about the status of negotiations with the new Labour government and other essential plans for the future.
