Health Insurance Association Assesses Strong Financial Health Among Pharmacies
The National Association of Statutory Health Insurance Funds (GKV-Spitzenverband) has recently highlighted that German pharmacies are currently experiencing robust financial performance, largely attributed to the increasing prevalence of high-priced pharmaceuticals. This assessment was publicized through a video shared on LinkedIn, which outlined the structure of pharmacy remuneration and its direct connection to the cost of medications.
According to the GKV-Spitzenverband, a significant factor contributing to rising pharmacy revenues is the three-percent margin pharmacies receive based on the purchase price of medicines. As the market introduction of high-cost medications has accelerated over the past decade, this margin has led to continuous growth in net turnover for pharmacies. The association's communication suggests that as drug prices escalate, pharmacy earnings follow suit, resulting in consistent annual revenue increases.
Despite concerns regarding the ongoing closure of pharmacy locations--often referred to as the 'pharmacy die-off'--the health insurance association maintains that the overall economic situation for pharmacy owners remains favorable. The association's spokesperson indicated that since part of the reimbursement is linked to the price of medicines, pharmacy revenues are naturally rising each year.
Addressing fears that a reduction in the number of pharmacy outlets could threaten the accessibility of pharmaceutical care, the GKV-Spitzenverband contends that service provision has not diminished, but rather become more concentrated at fewer locations. The association also points to record-high employment figures within the sector. Despite the competitive pressure from mail-order pharmacies, more individuals are currently employed in brick-and-mortar pharmacies than ever before.
However, some in the pharmacy sector argue that these observations do not fully account for the risks and operational challenges faced by pharmacy owners. Notably, the financial risk associated with pre-financing expensive medications and the persistent rise in operational costs are often cited as significant burdens. Industry representatives argue that without further economic stabilization, maintaining pharmacy operations may become unsustainable for many owners.
Recognizing these challenges, policymakers have acknowledged the need for reform. The current coalition agreement proposes an increase in the fixed service fee for pharmacies to 9.50 euros. The Federal Minister of Health has expressed commitment to implementing this measure, although no concrete steps have been taken to date.
Recent data underscores the ongoing decline in the number of pharmacies, which has reached its lowest point in nearly five decades, with only 16,601 operating locations. Industry leaders attribute this trend to insufficient economic reinforcement for pharmacies and have expressed frustration that remuneration issues are not addressed in current reform agendas.
Amid these developments, pharmacy associations continue to advocate for swift action to strengthen community pharmacies and ensure nationwide access to pharmaceutical care. They emphasize that local pharmacies play an essential role in the healthcare system and call for political measures to safeguard their future.