In the current financial climate, pharmacy operators of all sizes are looking at ways to reduce costs. In the case of the large multiple groups, this is being achieved in many cases by closing or consolidating pharmacies. For owners of 100 hour pharmacies, given that the largest cost by far is payroll, there is a strong appetite to find ways to reduce the opening hours.
PSC are currently advising a number of clients in locations where there is an opportunity to transfer the 40 hour contract operated by the closing pharmacy to the premises owned by the 100 hour pharmacy. We have recently completed projects in Manchester (working with two small pharmacy groups) and in the far south-west of England (working with a large multiple and an independent pharmacy owner). We also have ongoing projects in all parts of the country which will be concluded within the next six months or so.
These transactions are very complex from a regulatory perspective and it is important that any applications are managed very carefully to avoid the risk of refusal by NHS England.
We have published a document which sets out the issues involved with these types of applications which we are able provide to both applicants and their solicitors to ensure they understand exactly how these transactions need to be structured to avoid falling foul of the regulations.
We are happy to share this when instructed by clients to assist 40-hour to 100-hour relocations.