CPE promises ‘permanent changes’ to its voting committee as multiples downsize
Arthur Walsh,
01 Oct 2024
2 Min
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CPE promises ‘permanent changes’ to its voting committee as multiples downsize
Arthur Walsh,
01 Oct 20242 Min
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Article updated on 2/10/2024 with commentary from Community Pharmacy England.
Community Pharmacy England has pledged itself to implementing “permanent changes” to its committee structure “as quickly as possible” in light of the shrinking market share held by large pharmacy multiples.
In its annual report for 2023-24, the negotiator said its committee had “revisited its composition after a significant period of change in sector ownership,” following the demise of LloydsPharmacy and the decision by Boots and other Company Chemists’ Association (CCA) member companies to either close branches or sell them off, often to smaller operators.
CPE said: “Detailed evidence has been examined and there is agreement to make permanent changes to the committee as quickly as possible, alongside with immediate interim changes to ensure all main parts of the sector remain fairly represented.”
The ‘interim changes’ appear to be the appointment of two non-voting “observers” from the non-CCA multiple sector to the committee, something referred to in notes from a committee meeting held over September 11-12.
The meeting notes say the creation of these roles, which are to be allocated to owners with 10 or more NHS pharmacy premises, came about after changing ownership patterns “left a gap in representation” for these smaller operators.
The intention is to “give pharmacy owners from this part of the sector direct input into committee discussions,” said CPE.
While CPE did not specify when it intends to implement permanent changes to its seat allocation policy, P3pharmacy understands from a source that any reduction in CCA members' seat share may not happen before 2026.
Under the current structure, 12 seats on the 24-strong committee go to representatives from multiples, nine of which are allocated to CCA members and the remaining three to representatives from the Independent Pharmacies Association (IPA, formerly AIMp). The remaining 12 seats go to small independent businesses.
IPA has in the past challenged the negotiator on this issue, with chief executive Leyla Hannbeck arguing that the current committee structure gives CCA members disproportionate influence in committee votes on negotiation strategy and other issues.
Sharing its analysis of NHS data with P3pharmacy, CPE said non-CCA multiples now own 19.5 per cent of pharmacies in England (2,036 pharmacies), compared with 28.5 owned by CCA multiples (2,979 pharmacies). Businesses with 9 or fewer branches make up 52 per cent of the sector, or 5,429 pharmacies.
A CPE spokesperson told P3pharmacy: "Whilst detailed evidence has confirmed that there remains a 50:50 split between independents and multiples in the sector, the multiple half has rebalanced from CCA member multiples to other multiples with more than 10 pharmacies.
"CPE has recognised this change in sector ownership and agreed the need to make changes to its Committee. We will be changing the structure of the Committee as quickly as possible, but this will require consideration of associated issues and constitutional change, and consultation with LPCs and the national pharmacy trade bodies.
"Therefore, as an interim measure, we are appointing two non-CCA multiple observers to the Committee and have begun seeking expressions of interest from owners with 10 or more pharmacy premises in England."
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