“Pharmacy for pharmacist 2.0” on the fire of criticism. Patients and entrepreneurs lose

The “Pharmacy for Pharmacist 2.0” Act was to protect local pharmacies and improve the availability of drugs. Meanwhile, according to experts, it led to the collapse of the pharmacy market, weakening entrepreneurs and limiting patients actual access to medicines.

Regulated market

In 2017, the first “pharmacy for a pharmacist” (ADA) was introduced, which aimed to protect the pharmacy market against alleged acquisitions through foreign corporations and large networks. The regulation limited the possibility of opening new pharmacies only to pharmacists and imposed strict limits – a maximum of four pharmacies per owner. However, in 2023, the legislator decided on another amendment to the pharmaceutical law, introducing the so -called “Pharmacy for pharmacist 2.0”. By definition, it was supposed to gently clarify Ada’s provisions, but in practice, according to industry representatives, it caused serious problems.

“Both laws were introduced in a reprehensible manner, bypassing key public consultations,” emphasizes Rafał Dutkiewicz, president of Employers of the Republic of Poland.

As experts emphasize, the amendment has contributed to even greater review of the pharmacy market, leading to a situation in which pharmacy owners are forced to limit their activity, and patients lose access to medicines.

– In fact, the substantive justification of the Pharmacy for the Pharmacist was such to protect small pharmacists, but from the very beginning we said that the effect of introducing regulations in this form would be anticipative, i.e. that these Polish native companies will suffer the most as a result of the introduction of these changes – he explains Mariusz Kisiel, vice -chairman of the pharmacy platform.

Entrepreneurs in a lost position

What, according to industry representatives, hinders the life of small companies is, among others A ban on having more than four pharmacies by one entrepreneur and restrictions on sales and succession. This means that people who have developed their networks to four and more facilities have a closely further development possibilities.

– The owners cannot sell their pharmacies or give them to children. This is a limitation of entrepreneurship in its purest form – emphasizes Rafał Dutkiewicz.

What’s more, this kind of change in many cases is associated with a drastic reduction in the real value of the assets of pharmacy companies, which result in much less development potential.

– The larger the pharmacy entity, the more noticeable the decrease in its value is. It is said that pharmacy entities have caught up by about 30, and in some cases by up to 50 percent. – explains Mariusz Kisiel.

Problems in small towns

As experts indicate, one of the most noticeable effects of new regulations is the increase in the number of municipalities without pharmacies. Currently, over 400 municipalities in Poland do not have access to the pharmacy, which translates into about 2 million patients with difficult access to medicines, according to experts, this is an indirect effect of new regulations that block the possibilities of opening new facilities.

– We do not assess the direct influence, we only see a correlation. The number of pharmacies in Poland has been decreasing since the introduction of the provisions “pharmacies for the pharmacist”. What exactly factors are responsible for this, it is difficult for me to determine, but I can certainly indicate the economic mechanism that determines the greater chance of the success of the pharmacy operating within the network than the pharmacy belonging to the individual pharmacist. Namely,

It is often the case that a small municipality is simply too economically weak to keep one individual pharmacy. Keeping such a plan, which must make purchases in wholesalers, is simply unprofitable. The presence of a pharmacy associated in the network, which, having more pharmacies in the country, can afford financially, can afford to maintain this less prosperous one – explains Rafał Dutkiewicz in such a municipality of the pharmacy.

The problem, however, is not only the low profitability of pharmacy business in smaller towns, but also the inability to get financing for investments. Experts point out that banks are already refusing to finance pharmacies because they consider such an undertaking to be risky or too little profitable.

– Pharmacists do not have their own funds to open pharmacies, and banks do not want to finance such investments. The costs are too high and the legal environment is uncertain. They are afraid that in the event of financial problems, pharmacy owners will not be able to pay off their obligations, because the value of their businesses has dropped drastically – explains Mariusz Kisiel.

– Without external support, many pharmacists give up business plans. This not only limits market development, but also deprives patients with access to drugs in smaller towns – adds Rafał Dudkiewicz.

Oligopolization of the wholesale market

Another problem for the industry, which began to get worse after the introduction of ADA regulations, is the imbalance between the wholesale and retail market. There are currently about 300 pharmacy networks and individual pharmacists who are responsible for half of the market in Poland. The regulations prevent them from consolidating.

On the other hand, the main beneficiary controlling the currently crushed pharmacy market is a strongly consolidated wholesale industry, which due to the scale of its activity has a much better negotiating position.

– Pharmaceutical wholesalers use their economic advantage, associating pharmacies in the virtual network and imposing cooperation conditions for them – explains Kisiel.

Pharmacies as health centers – unused potential

Representatives of pharmacy employers also pay attention to the unused potential of pharmacies in the health care system. During the pandemic, pharmacists proved that they can effectively support patients by providing medical services. However, current regulations limit the development of this form of care.

– Pharmacists are ready to broadly provide pharmaceutical care services, but the rules must allow them. Pharmacies could become local health centers, offering, among others Vaccinations, pharmaceutical consultations or consulting in minor ailments – says Mariusz Kisiel.

As Rafał Dutkiewicz emphasizes, however, this solution requires a stable legal environment and investment support, because the conversion of a pharmacy for a wider task requires considerable expenditure.

– To adapt the pharmacy to the provision of additional services, you need to bear high costs related to renovation. Banki do not want to grant loans to the development of pharmacy, and entrepreneurs are afraid of the risk of not returning such investments. Remembering the experience of an unmanby adoption of Ada 2.0 in 2023 and incurring the costs of operating this concreting development of the market of the Act cannot be sure,

Will the legislator not come up with another provision tomorrow, which will be equally harmful – he says.

Pharmacy for pharmacist 2.0 – is there hope for change?

According to experts, the provisions introduced under “Pharmacies for pharmacist 2.0” should be withdrawn, because they are regulations that instead of supporting the market destroy it.

– In the first place, we must eliminate the Polish legal order from the Polish legal order, the ADA 2.0 law rapes the rights of entrepreneurs and return to the discussion about the regulation of the market with respect for all its stakeholders – believes Rafał Dutkiewicz

– From the perspective of a pharmacy entrepreneur operating on this market and at the same time a pharmacist, ADA 2.0 should immediately be removed from legal circulation. It would also be compensation for the judgment of the Constitutional Tribunal and securing the interest of Poland, which is threatened by claims of entrepreneurs who allow the State Treasury for losses related to harmful regulations. Next, we should talk about the realization of the provisions governing the pharmacy market and adapt to the current needs of the health care system In Poland, so that pharmacies can function safely and that we can best provide help to our patients – sums up Mariusz Kisiel.