Guild Government Agreement

The agreement is between the Pharmaceutical Guild of Australia (PGA) and the Commonwealth Government on the basis of a key clause of the National Health Act of 1953. It states that any agreement on how the Commonwealth pays for PBS articles must be concluded with the PGA or any other pharmacist organization representing the majority of “certified pharmacists.” The Community Agreement on Pharmacies is a five-year agreement (currently in the fifth cycle) that regulates how pharmacies supply drugs listed in the Pharmaceutical Services System (PBS). While the average Australian makes more than 14 visits to a community pharmacy each year, few people are aware of the impact of this agreement on Australian pharmacy. Patients pay a contribution to the cost of their medications to the pharmacist, who then claims to the government the difference between what they paid the wholesaler and the patient`s contribution. In the fiscal year that ended June 30, 2014, the government used $9.1 billion for PBS-listed drugs. That is exactly what that money received that was regulated by the Community Pharmacy Agreement. Compensation for the distribution of subsidized pbs, pharmaceutical drug management programs and services in pharmacies is expected to be $18.3 billion over the five years of the agreement. Check out our compensation, program and wholesale information sheets. The first Community Pharmacy Agreement (CPA) began in 1991 and focused on optimizing the distribution of pharmaceutical services across the country. At the time, there were concerns that there would be more pharmacies in the major cities, while regional and rural Australia did not occur.

The agreement introduced a new compensation framework for pharmacies that supply PBS-based medicines and created incentives for pharmacies in rural and remote areas. After the first CPA, the number of pharmacies in Australia increased from 5,500 to 4,950 at the end of 1995. This included voluntary closures of more than 600 pharmacies and more than 60 mergers and cost the government more than $50 million.

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