Buying a Pharmacy CHECKLIST
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- Dina Horn
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1 Buying a Pharmacy CHECKLIST Do you know where to find advice and support? q PHARMACY GUILD MEMBERSHIP Don t forget to apply for Guild Membership. For information on the many benefits of Guild Membership to your business contact the Membership department on (02) q PHARMACY SALES & VALUATIONS For details contact Michele Roache on (02) q QUALITY CARE PHARMACY PROGRAM Contact the Quality Care Co-ordinator to advise them of the sale on (02) Have you registered your business name? q TRADING NAME A business name consisting of the name of the individual does not require registration but all other business names must be registered under the provisions of the Business Names Act. This registration must be affected at Department of Commerce NSW, Office of Fair Trading, McKell Building, 2 24 Rawson Place, Sydney Ph: Do you understand your legal obligations? q PHARMACY COUNCIL Contact the Pharmacy Council of NSW for any relevant forms that need to be completed. Forms must be returned at least 14 days before acquiring an interest in a pharmacy when opening a new business, purchasing an existing pharmacy, changing a partnership or relocation. Arrange for name/s of the new owner/s to be displayed at or near main entrance of the pharmacy in accordance with the relevant legislation. The Pharmacy Council offices are located at Level 6, 477 Pitt Street, Sydney NSW. More information can be found on their website on Ph: q AUSTRALIAN HEALTH PRACTITIONER REGULATION AGENCY (AHPRA) Make sure your own registration for the current year is in order. More information about registrations and renewals can be found on their website Ph:
2 Do you understand your legal obligations? (continued) q NSW HEALTH It is a legal requirement for pharmacies to register as a food business with NSW Health. You can do this on the internet at q PHARMACOTHERAPY All Pharmacists purchasing a pharmacy providing Pharmacotherapy MUST inform Pharmaceutical Services Branch on PRIOR to the change of ownership date. This allows the change of supply of medications to be continued under the new ownership. Enquiries regarding the Opioid Treatment Program (OTP) and monthly returns for the OTP Pharmacy Incentive Scheme: Ph: (02) , Fax: (02) Further information visit: q APPLICABLE LEGISLATION For your information, the following are examples of legislation that impacts upon pharmacy. Please note that this list is not exhaustive: q Fair Work Act 2009 & Regulations q Work Health and Safety Act 2011 & Regulations q Anti-discrimination Laws (NSW and Fed) q Competition and Consumer Act (previously Trade Practices Act) q Health Practitioner Regulation National Law & Regulations q Privacy Act (NSW and Federal) q Tax laws q Superannuation laws q Public Health Act q Therapeutic Goods Act q Business Names Registration Act 2011 (for more information on this and your obligations under the new ASIC register visit q Employment Protection Act q Fair Trading Act and associated legislation (for more information visit q Health Care Complaints Act q Partnership Act q Retail Leases Act q Sale of Goods Act q Workers Compensation Act q Copyright Act 1968 q Long Service Leave Act 1955 These are all available at
3 Do you understand your legal obligations? (continued) q REQUIRED TEXTS and LEGISLATION FOR PHARMACY PREMISES AND PROFESSIONAL SERVICES ROOM Pharmacies are required to maintain on the premises current editions of the following publications: q Poisons and Therapeutic Goods Act 1966 & Regulations under the Act. q Poisons List proclaimed under section 8 of the Poisons & Therapeutic Goods Act 1966 or the latest edition, and all published amendments or supplements to that edition, of the Guide to the New South Wales Poisons Schedules published by the Pharmacy Guild of Australia () Ph: q The Health Practitioner Regulations and associated law. q Price Information Code of Practice The latest editions, and all published amendments or supplements of those editions of the following (available from the PSA, Ph: (02) ): q MIMS Annual or Drugs on Disk or AusDI or a similar publication approved by the Board. q Martindale The Extra Pharmacopoeia or AusDI or Micromedex or a similar publication approved by the Board. q Australian Pharmaceutical Formulary and Handbook (also known as APF) or a similar publication approved by the Board. q Australian Medicines Handbook (also known as AMH) or the Pharmacy Self Care Cards published by the Pharmaceutical Society of Australia or a similar publication approved by the Board. q EQUIPMENT REQUIREMENTS FOR PHARMACY PREMISES Pharmacies are required to have the following on premise at all times: q A refrigerator manufactured (either exclusively or principally) for the purpose of storage of vaccines. q Heavy duty scales, capable of weighing up to 1 kg and a set of metric q Weights compatible for use with those scales or an electronic scale q Capable of weighing up to 1 kg in increments of no more than 50 mg q A 200 ml dispensing measure q A 100 ml dispensing measure q A 10 ml dispensing measure q A 5 ml dispensing measure q A funnel q 2 mortars and pestles (at least 1 of the mortars and pestles being made of glass) q A stirring rod q 2 spatulas q An ointment slab q A tablet counting tray
4 Do you understand your legal obligations? (continued) q PHARMACEUTICAL BENEFITS DISPENSING You cannot supply pharmaceutical benefits under the National Health, Pensioner Medical or Veterans Affairs Services unless you are registered and have an approval number. It is necessary to obtain this approval from Medicare Australia who can be reached on (02) and the Australian Community Pharmacy Authority Ph: (02) in case of a new Pharmacy or a relocation. NB: Purchaser s application and vendor s advice of relinquishing Approval Number should have the same date of sale. Pharmacy Practice Incentives (PPIs) The PBS will pay incentives under the 5th Community Pharmacy Agreement for various professional services providing the pharmacy is quality accredited (QCPP) and displays and complies with Community Pharmacy service Charter. Because of the change in PBS number and bank account details, a new owner must register and give these details. See for more information. Are you fully insured? q GUILD INSURANCE Effect fire insurance on stock, fixtures, and fittings of the pharmacy and arrange general insurance, including Workers Compensation, Public Risk, Plate Glass and Pharmacists Indemnity Insurance. Arrangements for the insurance may be made with the nearest office of Guild Insurance & Financial Services. Their branches can be contacted on the following numbers: Hurstville: (02) ; ACT: (02) ; Newcastle: (02) q WORKERS COMPENSATION Guild Insurance offers workers compensation. The Guild Workers compensation team can be contacted on
5 Do you know how to employ people and your ongoing employer obligations? q APPLICABLE INDUSTRIAL INSTRUMENTS AND WAGE SHEETS An employer must have a copy of the applicable Industrial Instrument at the premises. In Community Pharmacy, for Pharmacists and Pharmacy Assistants, this is the Pharmacy Industry Award (please note an Enterprise Agreement may apply in your Pharmacy). It is also important that you are aware of the applicable wage rates for your employees under the award/ agreement and any penalty rates, allowances and loadings that may also apply. Guild Members can access a copy of the applicable Award wage sheets and advice on award/ agreement matters by calling q POLICIES AND PROCEDURES It is imperative that the Pharmacy have written policies and procedures that staff members are aware of in relation to staff management, safety etc. At minimum, we would strongly recommend the Pharmacy undertake written policies and procedures that cover the following: Workplace Surveillance Induction Performance Management Discrimination, Sexual Harassment, Harassment, Bullying WHS Policies and procedures including a Consultation Policy Disciplinary and Dismissal Confidentiality Risk Management System Contact the Guild for assistance on q CONTRACTS OF EMPLOYMENT Prior to taking on the current staff, it is imperative to ask your solicitor to check your sale of business contract to check on any conditions in relation to hiring the current staff. Once this has occurred, any offers of employment you would like to make to current staff should be done in writing and must comply with the obligations under the applicable Industrial Instrument. Also, all new staff members must be given a copy of the Fair Work Information statement, available on q EXISTING TRAINEESHIPS If you are going to be continuing an employee s traineeship by offering them employment on the same basis, it is important that you ensure the traineeship is transferred from the old employer to you. This can be done by contacting the New Apprenticeship Centre on Please contact the guild s Training Department on (02) to enquire if you are eligible for funding under the Traineeship Program.
6 Do you know how to employ people and your ongoing employer obligations? (continued) q LEAVE ENTITLEMENTS If you are taking over existing staff, check on their entitlements for Personal Carers leave (sick leave), annual leave and long service leave, and ask your legal representative as to the effects of these and how these are dealt with in the contract of sale. These checks need to be undertaken and any negotiations need to take place with the vendor before the contract is signed off. Leave entitlements accrue irrespective of change of ownership and provisions may need to be made by the vendor. Check with your solicitor as to the applicable conditions in your sale of business contract. q EXCLUSIONS The Fair Work Act allows for a new employer to not recognise an employee s prior service with the previous employee (provided that the old employer and new employer are not associated entities) for the purpose of accrued annual leave, unfair dismissal and redundancy. It is important that this issue be dealt with before the new employer takes over. Please contact the Guild for assistance on q EMPLOYMENT RECORDS The Fair Work Act requires that employment records for at least seven (7) years these must include each employees records in relation to; wages, hours worked, leave and superannuation entitlements etc. As prescribed by the Fair Work Regulation 3.41, if employees transfer from the old employer to the new employer, the old employer must give the new employer all records concerning the transferring employees, which the old employer has a duty to do. The new employer must keep these records as if they had been made by the new employer at the time at which they were made by the old employer. The new employer is not required to produce any duplicate records for this period. If the new employer employs an employee of the old employer within three (3) months of the sale, the new employer must ask the old employer for the employment records pertaining to this employee. q SUPERANNUATION Ensure you apply to become a participating employer for occupational superannuation. Check with the vendor as to existing employee funds. Guild Super: REST Administration: Be aware you must comply with the Superannuation legislation AND any applicable awards. q PAYG PAYMENT SUMMARIES (replaced Group Certificates) The appropriate amount of PAYG tax must be deducted from each employee s wages. PAYG withholding Weekly Tax Tables and employment declaration forms are available from any Post Office or newsagency. Contact your local Taxation Office for further information.
7 Do you understand your Work Health and Safety obligations? q WORK HEALTH & SAFETY All pharmacies MUST have a WH&S System in place (fines and possible imprisonment may apply for non-compliance). This includes policies and procedures etc. Please contact the Guild on for information and advice on WHS. Information on these are also available from WorkCover on or visit their website Have you advised all relevant parties of the change of ownership? q HEALTH INSURANCE FUNDS, BUILDING SOCIETIES, BANKS AND OTHER AGENCIES You will need to notify the relevant organisations of change of ownership or new business commencing. q ELECTORAL REQUIREMENTS Notify the local municipal council in the district. Ensure you get your vote either as an owner or a tenant. Also notify: q Telephone, electricity and gas. q Lease - check with your solicitor. Do not forget lease of neon signs and other equipment. q Wholesaler and direct accounts - notify change of ownership and open accounts. q Stationery - letterheads, rubber stamps, labels, prescription folders etc. q Cosmetic agency agreements - check with the company. q Notify your local police station of the person to contact in case of an emergency after hours for fire or burglary etc. q Security company agreement check with company. Last Updated: August 2012
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