Australian Community Pharmacy Authority Applicant's Handbook

4. Catchment area requirements

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4. Catchment area requirements

These requirements only apply to the following types of application:

Rule 107: relocation to a rural locality (additional pharmacy);

Rule 108: relocation to an urban locality (additional pharmacy); and

Rule 113: new pharmacy (general).

The ACPA must be satisfied that the relevant catchment area contains certain features.

4.1 Defining the catchment area

The catchment area of a pharmacy is generally considered to be one in which the population would naturally and reasonably gravitate toward the pharmacy. In considering a catchment area, the ACPA will take account of matters such as traffic networks and natural barriers. It will also consider other services or attractions in an area which may influence the flow of the population (e.g. people may be likely to travel further to a shopping centre for their shopping needs rather than to a single corner store that might be closer).

It should be noted that in areas where there is one or more existing pharmacies, the catchment area of a proposed pharmacy is likely to overlap, to some degree, with those of the existing pharmacies.

It is the applicant’s responsibility to define the catchment area which they propose to service. In identifying the relevant catchment area, applicants should consider the following factors:

• natural flow of the population and any natural barriers which may influence this;
• distribution of the population and any unique characteristics of the population;
• other services and attractions in the area which might target the population from a larger region; and
• access to existing pharmacies and to the proposed premises, including road networks and public transport.

In compiling a catchment area profile, it is recommended that:

• the claimed catchment area be clearly delineated on a scaled map, together with those for other pharmacies in the area;
• the proposed premises, existing pharmacies, medical practitioner/s and other relevant services or facilities be marked on the scaled map;
• any cross-reference to population data be clearly marked (for example, SLA 12345) with the relevant delineation;
• all maps be of sufficient scale to enable clear identification of any relevant features, and the source for the map/s should be cited.

It is important to note that, in considering whether a catchment area contains certain features, the ACPA must be satisfied that those features are already present. The ACPA cannot take into consideration claims that a catchment area will contain a required feature in the future (e.g. population forecasts).
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4.2 Catchment area -Population

The ACPA must be satisfied that the relevant catchment area contains the following population:

• For Rule 107: relocation to a rural locality (additional pharmacy), the catchment area must contain a population of at least 8,000.
• For Rule 108: relocation to an urban locality (additional pharmacy), the catchment area must contain a population of at least 8,000.
• For Rule 113: new pharmacy (general), the catchment area must contain a population of at least 3,000.

This population must be a residential population and must be present in the catchment area for most of the year.

In considering whether population is present for "most of the year", the ACPA may consider a range of factors. For example, in the case of a town that holds a jazz festival for four weeks of the year, during which time the population triples, it is unlikely that the ACPA would consider this population to be present for most of the year.

Any data relating to population should be from an objective source (e.g. the Australian Bureau of Statistics, local or other Governmental reports or publications, market research reports by professionally accredited persons).
See items 107, 108 & 113, Schedule 1

4.3 Catchment area – Population growth

For Rule 108: relocation to an urban locality (additional pharmacy), the ACPA must be satisfied that the population of the relevant catchment area has grown at least 5% over each the past two years (that is, the two years preceding the subject application).

This requirement is not limited to a financial or calendar year, rather it applies to any two consecutive 12 month periods.

The growth rate is not to be used as an average and the population must have grown by at least 5% for both years. For example, if an application is made in January 2008, the ACPA must be satisfied that the population of the relevant catchment area grew by at least 5% in 2007 and grew by at least 5% in 2006.

Any data relating to population should be from an objective source (e.g. the Australian Bureau of Statistics, local or other Governmental reports or publications, market research reports by professionally accredited persons).
See item 108, Part 1, Schedule 1
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4.4 Catchment area – Prescribing medical practitioners

The ACPA must be satisfied that there are at least a specified number of full-time (or equivalent) prescribing medical practitioners practising in the relevant catchment area, as detailed below:

• For Rule 107: relocation to a rural locality (additional pharmacy), the catchment area must contain at least four full-time (or equivalent) prescribing medical practitioners.
• For Rule 113: new pharmacy (general), the catchment area must contain at least one full-time (or equivalent) prescribing medical practitioner.

The pharmacy location rules define a prescribing medical practitioner as a medical practitioner that is licensed/registered under the relevant State or Territory law, that is supplying general practice services to the community and is authorised to issue prescriptions for pharmaceutical benefits.

The pharmacy location rules do not specify what constitutes the equivalent of full-time so the ACPA have some flexibility in considering this. It may include a number of part-time medical practitioners that, together, provide the same level of service that a full-time medical practitioner provides. Alternatively, a single medical practitioner may provide the same level of service that more than one full-time medical practitioner provides.

The ACPA will not be satisfied if a medical practitioner lives in the relevant catchment area but operates their medical practice outside of that catchment area. The medical practitioner must be practising in the relevant catchment area.

Evidence addressing this requirement may include a statement or statutory declaration from the relevant medical practitioner/s regarding the hours they operate their practice, copies of any advertisements regarding the hours of operation of a practice, a practice information sheet and the provider numbers for the medical practitioners.
See items 107 & 113, Schedule 1
See also paragraph 6(1)

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4.5 Catchment area – Amalgamations

For Rule 107: relocation to a rural locality (additional pharmacy), the ACPA must be satisfied that the existing approved pharmacy in the relevant catchment area has not been involved in an amalgamation with another pharmacy that had previously been approved in that locality, within the past three years (that is, the three years preceding the subject application).

Pharmacies that have been involved in an amalgamation that occurred on or after 1 July 2006 are excepted from this requirement.

The pharmacy location rules do not define an amalgamation so the ACPA has some flexibility in considering this. However, it is generally considered to be the
consolidation of two or more approved pharmacies into a single approved pharmacy.

Evidence addressing this requirement might include records indicating that the relevant catchment area has only contained a single approved pharmacy for the past three years, or a statement by the existing pharmacist regarding any amalgamation which may have occurred. The ACPA will give the existing pharmacist in the relevant catchment area the opportunity to comment about whether his or her pharmacy has been involved in any amalgamation.