Photo: RNZ /Dom Thomas
A 2.5 per cent funding increase for pharmacies is half of what Health New Zealand's own figures show the sector needs in order to meet cost pressures.
The Integrated Community Pharmacy Services Agreement sets out the terms by which Health New Zealand funds pharmacies for their work.
It's mostly linked to the dispensing of prescriptions.
It states there be a national review each year - and that this review will consider cost pressure adjustments.
However the Pharmacy Guild which negotiates on behalf of pharmacy owners at this review says this year Health NZ came to the table with a low-ball number and wouldn't budge.
They were given a take-it-or leave funding increase of 2.51 per cent, despite cost pressures estimated by Health NZ's own figures putting the amount required at 5.62 per cent.
GPs, who concluded their annual review talks just ahead of the pharmacists were offered a 4 per cent lift but also were allowed to increase their co-payment fees making it in real terms about 5.8 per cent.
Pharmacists have very few options to bridge the revenue gap, and with workforce pressures already at a boiling point, there are fears this will spell the end for some community entities.
Kathryn speaks to chief executive of the Pharmacy Guild Andrew Gaudin and owner of Mangawhai Pharmacy Lanny Wong.
