RE: ⚠ Urgent: Sector-Wide Financial Pressures – Key Findings & Next Steps

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Dear Member,

We are reviewing the full findings of the Economic Analysis of NHS Pharmaceutical Services in England (March 2025, Frontier Economics & IQVIA) — but the headlines are already clear and urgent.

🔍 Top-Line Findings

🟥 47% of pharmacies were unprofitable in the last financial year

🟧 24% of parent companies had liabilities exceeding assets

🟥 7% net reduction in pharmacies (Jan 2021–Nov 2024), mainly large chains

🟨 Increasing defaults on stock payments and operational restructuring

💰 Funding Gap

             •    Cost to deliver NHS services (2023–24): £4.4–£5.7bn

             •    Actual funding: £2.755bn

➡ Shortfall of up to £3bn

⚠ Sustainability Risk

             •    97.7%–100% of pharmacies are funded below full economic cost

             •    At risk: closures, reduced hours, service cuts

📊 Cost Drivers Identified

             •    Higher costs: GP co-location, low dispensing volumes

             •    Lower costs: Participation in Pharmacy Access Scheme, larger group size

✅ Potential Opportunity

             •    Pharmacies could deliver some services more efficiently than GPs/hospitals

             •    But only with proper funding and structural support

📣 What You Need to Do Now

🔹 Review these findings — know the risks and facts

🔹 Speak to your local stakeholders and MPs – the evidence is now clear

🔹 Engage with our campaign – further briefings and materials to follow

🔹 Assess your pharmacy’s position – cash flow, service delivery, sustainability

🔹 Stay alert – we’ll be in touch soon with coordinated next steps

💬 We are at a critical point. The funding model is failing, but with united action we can press for meaningful reform.

We’ll follow up shortly. If you need support or want to get involved, contact us directly.

Best regards,

PharmaPlus