Two-thirds of pharmacies in England operate at a loss, reveals survey

Two-thirds of community pharmacies in England are operating at a loss, while one in six may close within the next year, according to a survey by Community Pharmacy England (CPE).

Results of the survey, published on 25 August 2024, show that the majority of pharmacy owners (94%) say they have experienced significant increases in costs, with almost two-thirds of pharmacies (64%) operating at a loss.

The findings were included in CPE’s ‘Pharmacy pressures survey 2024: funding and profitability report’ — the latest in a series of sub-reports developed from the findings of its 2024 ‘Pharmacy pressures survey’, based on views shared by 900 owners of more than 6,100 pharmacy premises in England and 2,000 pharmacy team members.

CPE said the findings show these pressures are now having an impact on patients, with most pharmacies reporting longer prescription dispensing times (86%), delays in responding to patient inquiries (80%) and less time to spend with patients (79%).

In addition, more than 40% of the surveyed pharmacy owners said financial strain was limiting their ability to provide advanced services, which included the new medicine service and vaccination services.

CPE noted this had already been identified in a snap opinion poll published in June 2024, when nearly a third of pharmacy owners reported that they had stopped providing some of these services.

Janet Morrison, chief executive of CPE, said the findings “make distressing reading” and “should be ringing alarm bells for anybody interested in protecting the health and wellbeing of local communities and the public”.

“Community pharmacies are under severe financial strain, with widespread profitability concerns. Many are losing money and uncertain about their ability to survive another year: this is a direct consequence of the significant funding cuts and spiralling costs which have pushed them to the brink,” she said.

“We’ve been warning for many months and years that these issues must be resolved and this evidence provides yet another stark warning which must not be ignored.”

Commenting on the findings, Leyla Hannbeck, chief executive of the Independent Pharmacies Association, said: “It is worrying that it’s only now that CPE are publishing this, given that they have been in negotiations and these factors are important to bring to the table.

“We have been saying for months that the majority of pharmacies are showing losses.”

Paul Rees, chief executive of the National Pharmacy Association, said: “As these stark statistics show, community pharmacy is being pushed to the brink due to rising funding pressures and demand for services.

“Community pharmacies act as the front door to the NHS. If people lose access to them, it will force more patients into the [morning] scramble at their GP surgery, putting pressure on the rest of our NHS system.

“1.6 million people a day visit their pharmacy, but they are closing at a record rate, and millions of people are seeing the effect of that in their communities.

“If the government wants to cut GP waiting times — and free up GPs to see patients with more serious conditions — it needs to invest in community pharmacy.”