What Does The 8CPA Mean For Your Pharmacy?

Last month, the Australian pharmacy industry secured a major victory with the confirmation of the Eighth Community Pharmacy Agreement (8CPA). After a rollercoaster year marked by the challenges of the 60-Day Dispensing policy and the COVID-19 pandemic, the 8CPA brings much-needed relief and support to the pharmacy sector.

Key Outcomes of the 8CPA

1. Undoing the Damage of 60-Day Dispensing

• $2.11 billion was allocated for new fees related to 60-day dispensing, addressing the financial impact of the policy.
• Structural changes to dispensing remuneration to mitigate the effects of 60-day dispensing.

2. Increased Funding and Remuneration

• $4.88 billion increase in total funding from the 7CPA (+22%), including a $3.94 billion boost in dispensing remuneration and a 35% increase in program funding.
• Annual increases in average PBS remuneration per script throughout the 8CPA, with the dispensing fee, Tier 1 AHI fee, and dangerous drug fee indexed by CPI each July.

3. Cost of Living Relief for Patients

• Freezing of co-payment indexation, with patient co-payments reduced by $1 and the current $1 discount eliminated by January 2029.

4. Enhancing Healthcare Services

• Increase in the Dose Administration Aid (DAA) base cap from 60 to 90 per week, improving access to these essential services.
• An additional $52 million for the Regional Pharmacy Maintenance Allowance (RPMA), supporting pharmacies in regional areas.

Strategic Agreement on Pharmacy Professional Practice

In addition to the 8CPA, the Pharmaceutical Society of Australia (PSA) has also signed a Strategic Agreement on Pharmacy Professional Practice, which includes:

• Recognition of the PSA as the peak body for pharmacists across all areas of practice in Australia.
• Provision and development of Professional Practice Standards and Guidelines.
• Resources and documents to support quality of service delivery and Clinical Governance Principles.
• Developing a framework to demonstrate the benefits of pharmacists’ roles and advocate for future funding.
• Further developing the role of pharmacists in primary care.
• Advocating for appropriate remuneration, with the principle Pharmacists can do more, but we can’t do more for less. We can do more when the government supports us in doing more.

Impact on Individual Pharmacies

The 8CPA and the Strategic Agreement have significant implications for individual pharmacies, particularly regarding financial projections and remuneration. At StrongRoom AI, we are proud partners of Australian pharmacies and will continue to support them through this transition. Our tool, StrongPro, powered by cutting-edge AI technology, offers a comprehensive solution to estimate losses and projections. With predictive modelling capabilities, StrongPro provides invaluable insights into patient adherence patterns, revenue projections, and the impact of policy shifts like 60-day dispensing. Pharmacies can utilise this tool and explore how it can help their business, click here to book a demo.

With the 8CPA and the Strategic Agreement, the Australian pharmacy industry has secured a strong foundation for the future, addressing the challenges of the past year and paving the way for enhanced healthcare services and professional recognition. At StrongRoom AI, we are committed to supporting our pharmacy partners every step of the way.