Earlier this month, the Australian Competition and Consumer Commission’s (ACCC) approved the proposed merger between Chemist Warehouse and Sigma Healthcare, subject to the fulfillment of certain undertakings by Sigma.
The Guild maintains significant concerns about potential impacts on patient care, community pharmacy ownership, and the diversity of the pharmacy landscape.
Over the past year, the Guild actively consulted with its members about the merger's implications. Submissions clearly outlined the risks that the merger posed to the sector, with a particular focus on patient access, the ownership of community pharmacies, and wholesaling options. The Guild thanks members for their participation in this consultation.
Following the ACCC’s approval, many unanswered questions remain, including uncertainty around the anticipated reduction in wholesaling choices that will lessen competition. Reduced competition ultimately leads to higher prices for patients and lower service standards.
The merger is part of a concerning trend of market consolidation in healthcare, with similar patterns emerging in oncology, general practice, and pathology services. Such consolidation, has led to non-competitive duopolies and an unequal distribution of healthcare services, ultimately reducing the presence of smaller, local businesses that are better positioned to offer personalised care to their communities, which the Guild believes is not in the best interests of patients. #BBD0E0 »
