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Summary of key changes to the Pharmacy Location Rules

Pharmacy Location Rules

Summary of key changes effective 18 October 2011

Policy changes

1. Converting five relocation rules to new pharmacy rules
The conversion of five relocation rules to new pharmacy rules will simplify the process and make it easier to establish a pharmacy in appropriate facilities and areas of community need. This change will remove the need to relocate an existing approved pharmacy which could potentially leave a community without pharmacy services.








The Rules now provide for the establishment of a new pharmacy in:

• Facilities including:

1. Small shopping centre
2. Large shopping centre
3. Large medical centre
4. Private Hospital

and

• One pharmacy towns.

A new pharmacy established within any one of the above facilities is unable to relocate to premises outside of that facility for a period of 10 years.

A new pharmacy established within a one pharmacy town is unable to relocate to premises other than those located within the same town.

2. Abolishing three relocation Rules

The following Rules have been abolished as they either were confusing to applicants and not widely used, had fulfilled their intended purpose and therefore no longer required or were not achieving the desired outcomes:

• Short distance relocation (between 1 km and 1.5 km) (Rule 105)
• Long distance relocation (Rule 106)
• Relocation to urban locality (additional pharmacy) (Rule 108)

Note: There are provisions in the Rules to allow applicants who had secured a legal right to premises prior to 18 October 2011, to lodge an application prior to 16 April 2012.

3. Simplifying the catchment test

The catchment test has been simplified through the introduction of an objective test based on existing services and attractions.

In the past many applicants had difficulties identifying an appropriate catchment area and sourcing associated population data.

The new catchment test for the ‘New Pharmacy (at least 1.5 km)’ rule requires that within 500 metres of the proposed pharmacy there is at least:

• One full-time General Practitioner and a small supermarket of at least 1,000 square metres;

or

• A large supermarket of at least 2,500 square metres.

The new catchment test for the ‘New Additional Pharmacy (at least 10 km)’ rule requires that the town in which the proposed pharmacy is located contains:

• The equivalent of at least 4 full-time prescribing general practitioners;

and

• One or two supermarkets with a combined total gross leasable area of at least 2,500 square metres.

4. Changing some of the requirements for shopping centre rules

The number of commercial establishments required for the first pharmacy in a large shopping centre has been increased from 30 to 50. This is to ensure there is a clear distinction between a small and large shopping centre.

The requirements for demonstrating the number of commercial establishments within a shopping centre have been changed to allow a broader range of businesses to be included in the definition of commercial establishments.

5. Changing some of the requirements for the Large Medical Centre rule

Some changes have been made to the requirements of the Large Medical Centre rule to better address emerging health care delivery models. These changes include:

• a more flexible definition in relation to the ‘prescribers’ in the large medical centre to include one allied health professional authorised to prescribe PBS medicines, as well as general practitioners in the total number of required prescribers; and
• the exclusion of pharmacies in facilities such as shopping centres from the distance requirements when measuring the distance between proposed premises and the nearest pharmacy.

6. Removal of the Pharmacy Access/Remoteness Index of Australia (PhARIA) in relation to the Rules

Previously, each relevant Rule included a distance requirement as well as the PhARIA requirement. The distance requirements for the relevant Rules have been clarified to better reflect the intent of each Rule. As such, the use of the PhARIA classification system is no longer necessary to distinguish the locality of proposed pharmacy premises.

In the relevant Rules, the term ‘rural locality’ has been replaced with ‘town’.

Administrative changes

7. Lodgement of applications
From 18 October 2011, all information supporting an application must be provided at the time the application is lodged with the Medicare. This change will provide consistency and fairness for all applicants and streamline administrative processes.

This change will not prevent the Australian Community Pharmacy Authority from requesting additional information from the applicant should it wish to do so.

8. Proposed premises can not be approved premises on the date of application

The ACPA will be unable to recommend an application for approval if there is already an approved pharmacy operating at the proposed premises on the date of application.

Further information

www.health.gov.au/ACPA

Phone: (02) 6289 2419
Facsimile: (02) 6289 2365
Email: acpamail@health.gov.au