Guild questions CSO

Graham Smith

Writing in Pharmacy News (see next issue out 27 September), Mr Sclavos said the CSO has allowed entry to a supply model, contravening the original intent of the scheme that was signed off in the Fourth Community Pharmacy Agreement.

"The problem with the current CSO scheme is that it allows for the supply model which DHL operates. Their model is one where they act as agent for certain manufacturers, they do not own the stock and most of their supplies to pharmacies are in bulk once or twice a month - they rarely operate a daily supply to pharmacy," he wrote.

"Accessibility is a fundamental principle the Guild stands by. Anyone in the wholesaling space in Australia should understand the rules of engagement for our section of the economy. They need to supply all pharmaceuticals without fear or favour and they need to supply all pharmacists, if those pharmacists want to deal with them, without fear or favour."

Mr Sclavos told Pharmacy News that the welfare of any individual wholesaler was not the Guild’s concern, rather the viability of an equitable pharmaceutical supply system.

"I was in New York, looking after a sick child, in one of the most densely-populated areas of the planet and yet we had to get medications from four different pharmacies because of the way a deregulated pharmaceutical supply chain operates. The day that happens in Australia, pharmacy should bow its head in shame. The fundamental reason that system occurs in the US is because of selective delivery arrangements and selective distribution arrangements."

Mr Sclavos said the government’s desire to nurture pharmaceutical wholesaling competition had had unwelcome effects.

"The Government welcomes competition, as does the Guild, and we do not want this scheme to just protect the existing players. It is our view however, that the current model places the integrity of the scheme at risk based on how the market has reacted."

Mr Sclavos said during negotiations for the fourth agreement the idea that an agent for a manufacturer could access the scheme was never mentioned.

"Between now and then ‘agent’ has become part of the CSO and 24 hour service has turned into a requirement to supply within 24 hours ‘when requested’."