Unfair fees and low competition: why the pharmacy sector needs a shake up
The Conversation Africa
Last updated: July 13, 2026
The Australian pharmacy sector is criticized for unfair fee structures and a lack of competition, leading to calls for significant reform. Unlike other health industries, pharmacy funding negotiations occur in private, lacking public scrutiny and justification for decisions. This lack of transparency raises concerns about the fairness and efficiency of the current system.
- The Australian pharmacy sector is facing calls for reform due to concerns over unfair fee structures and limited competition. This industry operates uniquely by negotiating its own funding in private, a process that lacks public evidence to justify the financial decisions made. Such opaque negotiations contrast sharply with how other Australian health industries operate, where funding decisions are typically subject to greater public oversight and justification. The article suggests that this closed-door approach to funding has contributed to a system where pharmacies may be shielded from market pressures, potentially leading to higher costs for consumers and reduced accessibility to pharmaceutical services. The need for a shake-up is underscored by the potential for increased transparency and competition to drive efficiency and improve public health outcomes. The current model, it is argued, does not serve the best interests of the public due to these inherent structural issues and the absence of competitive forces.
