It is impossible to avoid the daily dose of bleak economic news that comes at us from so many angles. Stagnant economic growth, layoffs in many sectors, the ongoing impact of tariffs. And one can easily argue that community pharmacy is particularly hard-hit because it has been such a very long time since the fundamental dispensing and other fees have been increased.
The Association has vigorously advocated for an increase to the long overdue dispensing fee. But January 2025 turned the province’s fiscal situation on its head with the inauguration of President Donald Trump. Hiring and spending freezes were quickly imposed by the B.C. government as a cautionary measure to offset the unknown impact of the tariffs.
At the Association, we are now exploring ways to gather data that will demonstrate to government why, despite fiscal constraints, that more money needs to come to community pharmacists. As a result of the work pharmacists are doing on minor ailments, prescription adaptations, renewals and immunizations, money is being saved while patient access to much needed care is being increased.
Almost 20 years ago, the BCPhA, in partnership with the Government of B.C. and the then Canadian Association of Chain Drug Stores, undertook and Activity Based Costing Study (ABC). Unlike traditional economic overhead studies, the ABC methodology assessed the cost of delivering various pharmacy services.
A lot has changed since 2007 in terms of community pharmacy — both good and bad. A great deal of money has come out of the sector through things like the reduction of drug costs, and also income, through expanded scope of services. But it is well known that the lack of an increase in the dispensing fee, combined with increased costs in labour and other areas, has caused community pharmacy to struggle to remain sustainable.
The BCPhA Board supported updating the ABC Study to get up-to-date data on the costs of delivering pharmacy services. We want to ensure we can demonstrate with objective evidence that pharmacy needs better economic support in order to meet the increasing demands of patients.
We have contracted with a consulting firm to execute the study and that work is underway. I want to thank all pharmacies who have expressed an interest in participating in the study. We anticipate having a final report early in the new year and this will be shared with members and government. I have no doubt the report will show that the cost of delivering pharmacy services has been under pressure and has grown over time. I am confident the study will give us the data we need to engage with government and gain their support to invest in community pharmacy.
Geraldine Vance
Chief Executive Officer
BC Pharmacy Association