This new year heralds a significant opportunity for evolution and progress for independent community pharmacy, says chief executive of Mr Pickford’s Pharmacy Mukesh Lad

Over the past 12 months I’ve talked about the need for change in our pharmacy models. Community dispensing is already dominated by commodity generics, alternative distribution arrangements are threatening our wholesalers, internet pharmacies continue to gain strength in the market, and we’re faced with intensifying competition from the independent and private sector for the delivery of public health services.

However, what the health consumer of 2015 is going to demand is even more convenience and greater clinical expertise. In other words, they want it all, as quickly as possible! With nearly half a million visits to community pharmacy for health-related reasons last year, it’s not unreasonable to suggest that pharmacies see more people than any other NHS care setting. As a result, it’s now widely acknowledged that community pharmacy is well placed to deliver cost-effective frontline healthcare that reaches into the heart of every community to improve the health of the nation.

Seize the day

Over the past year, I’ve grasped every opportunity – as an LPC chairman and more recently as chairman of a federated pharmacy provider organisation in Leicester City, County and Rutland – to stimulate debate in local communities, to shape local strategies for community pharmacy and to inform the strategic framework of our commissioners and stakeholders.

Although we’re one of only a handful of federated pharmacy organisations in England, we’re already ahead of the curve. We’ve made ourselves the first port of call in the healthcare system for locally commissioned services and have won all our procurement tenders to date. Our success has been recognised by the National Association of Provider Organisations, which is the network for GP provider companies and others focused on the ‘out of hospital’ sector.

The potential in 2015 for a pharmacy federation to support ‘primary care at scale’ and to integrate with other health and social care functions is considerable and very exciting. Our presence in this elite group of integrators of care in the community accords fully with the direction of travel in the Five Year NHS Forward View.

The benefits of federation

There’s no doubt in my mind that independent pharmacies will be in a far better position to deliver locally commissioned public health services as part of a recognised federated group. The federated model creates the unique opportunity to tailor its offering of services delivered through pharmacies to local priorities, which will provide commissioners with outcomes targeted at those populations with greater need.

Independent pharmacies will be in a far better position to deliver locally commissioned public health services as part of a recognised federated group

The benefits for independent pharmacy members in return for a small up-front investment include the provision of skills and expertise in writing the procurement bid, the provision of a full toolkit to deliver the commissioned service, including the service level agreement, standard operating procedure, CPD training, accreditation and the supply of all marketing resources and materials for the service in question.

Importantly, independents cannot do it alone. A federated operating group provides an enabling environment and professional requirements to demonstrate the leadership and capabilities of this new pharmacy model. And even more important, a professionally recognised organisation, as we are in Leicester and Rutland, will give us the opportunity to move forward in collaboration with those GP surgeries that have also federated en masse.

In a major change from the previous arrangements, the NHS, public health and social care services will have different performance management mechanisms, budgeting processes and lines of accountability. Commissioners are no longer allowed to simply roll over existing contracts, but have to follow EU procurement regulations.

Clear roles for pharmacy

Community pharmacy has a clear role to play in all three areas. By sitting firmly across these different health structures as part of a federated provider group, any independent pharmacy is well placed to provide a comprehensive approach to healthcare in the community. It’s vital that you, as an independent contractor, choose the shortest and most effective route to retaining the services you already deliver.

There’s still a massive financial challenge facing the NHS that requires £20 billion of productivity savings by 2015. The medicines budget represents some 10 per cent of the overall NHS spend. The case for urgent change is compelling and we need to act now by showing leadership amongst ourselves and demonstrating our ability to work in new ways to improve the health of the public.

The winds of change are beginning to be felt in those more traditional institutions, including the local pharmaceutical committees. I see they’re proposing amendments to their constitution that would allow collaborative working with other LPCs and support for contracting bodies such as a limited or community interest company.

In Leicestershire and Rutland we set out key milestones for our federated group members in June last year. We have strategic aims and recognise the importance of turning strategy into action. Our priority is to generate income from pharmacy services while supporting our members to deliver a gold-standard service that will ensure the reputation of our profession is upheld in years to come. In our first nine months of operation, we’ve guaranteed contracts for £250k and we expect to double this earnings potential for independent pharmacies in our group by the end of its first year.

Happy new era to you all!

If you wish to discuss starting your own pharmacy federation in 2015, please contact mukesh@lipcohealthcare.co.uk.