Budget 2027 Must Deliver a Transparent Framework for Community Pharmacy Fees

  • IPU says statutory fee reviews must properly reflect the changing cost of delivering State-funded pharmacy services.

 IPU, Monday 28 September 2026:  The Irish Pharmacy Union (IPU) has called on Government to use the current statutory review of community pharmacy fees to establish a transparent and evidence-based framework for assessing the cost of delivering State-funded pharmacy services, and to make appropriate provision in Budget 2027 for the outcome of that review.

Community pharmacy fees are reviewed under the Public Service Pay and Pensions Act 2017, with the current statutory review having commenced. The IPU says there should be greater clarity and transparency around how changes in the cost of delivering contracted services are assessed as part of the statutory review process. The Union is calling for a clear, evidence-based framework that consistently considers changes in key cost drivers, including workforce costs, inflation, regulatory requirements, digital transformation, and other costs associated with delivering State-funded pharmacy services, which have significantly increased in recent years.

Commenting, IPU President, Caoimhe McAuley said, “Community pharmacies operate in a unique environment. The State determines the remuneration for the vast majority of medicines dispensed through community pharmacy, while pharmacies have very limited ability to respond to increases in the cost of delivering those services.

Approximately 81% of dispensing activity in community pharmacy is funded through State schemes and, unlike businesses that can adjust their prices in response to rising costs, pharmacies are largely price takers for this significant proportion of their activity.

“That makes the statutory review process critically important. We need a clear and transparent framework that allows both Government and pharmacy contractors to understand how changes in the cost of providing State-funded services will be assessed and, where appropriate, reflected in remuneration.”

Pharmacy owners need to be able to plan, invest in their teams, adopt new technology and develop the additional services Government increasingly wants delivered through community pharmacy.”

Ms McAuley concluded, “Community pharmacy has demonstrated its willingness and capability to take on a much greater role in delivering healthcare within local communities. But that expanded role must be built on a sustainable foundation.

“Budget 2027 should make appropriate provision for the outcome of the current statutory review and ensure that the remuneration framework properly reflects the resources required to deliver safe, sustainable and high-quality pharmacy services to patients.”

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