Blake Hedley, who works at Hedley Partners with his father Paul – and between the two, they have around 60 years’ worth of advisory experience to pharmacists – talks about the challenges facing pharmacists, particularly young pharmacists, and tips on pharmacy ownership.

Challenges include a lack of supply thanks to caps on licences – “it’s like there’s only 6,500 houses in the whole of Australia!” – and how banks will only lend on valuation, when there may be other factors attracting pharmacists to own a particular store.

“It makes it very hard for younger people,” Hedley says. “It’s definitely a lot easier for the older pharmacists.”

Early career pharmacists are also affected by “downward pressure on their wages” with a fairly large HECS debt, particularly given its indexing; and “limitations in and around ownership opportunities” for those who want to go down that path.

We find out what makes a successful pharmacy owner – and how despite a nervousness about 60-day dispensing, the sector is likely to bounce back.

“Pharmacists used to put millions of dollars putting photo dispensing in their shops,” Hedley says. “Digital cameras came in and all that went away.”

Pharmacy services including vaccination and supply of vapes could help fill income gaps created by 60-day dispensing, Hedley says – just as other offers filled the gaps left by analogue photography.

“There’s always something around the corner for pharmacy.”

1.33 – Challenges for the reality of working in the industry for those who have newly qualified

3.59 – What’s been motivating pharmacists to buy pharmacies lately?

8.07 – Has bank lending criteria changed, with 60-day dispensing and other elements of change?

14.51 – As pharmacists can exclusively own pharmacies, what does that mean for tax and borrowing power?

16.27 – All about buying groups

18.33 – How many pharmacy transactions can happen in a year (and how did Covid change this)?

23.30 – The impacts of 60-day dispensing, and positive changes in its wake

27.04 – Which pharmacy owners fail, and which succeed?

31.54 – All about trading pharmacies

37.33 – Where to start when looking to buy a pharmacy

You can access the full transcript of this podcast here. While we endeavour to ensure all important words and phrases are correct, please note there may be some minor inaccuracies in the transcription.

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