Pharmacy Career, Resource & Training with Kavita Nadan Pharmacy View

Helping Professional Pharmacists Deliver Professional Services

May 11, 2023

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In this episode of Pharmacy View Podcast’s Pharmacy Career, Resource & Training stream, host Kavita Nadan, Pharmacist and Founder at Locumate, talks to her mentor, Michael Gray, Manager of Prime Pharmacy Group. In addition to being an experienced director and manager with a demonstrated history of working in the retail Pharmacy industry, Michael also holds a law degree. Listen to the episode as Michael talks about the changing trends in the Australian Pharmaceutical Industry, independent contractors and their superannuation, the shift in pharmacy ownership, and their drive to help budding entrepreneurs.

Having learned the value of a strong work ethic from their parents at an early age, Michael started work at 15—sold photographic equipment, had a short career as a photographer at a local newspaper, traveled overseas, went to Pharmacy College at 25, interned at a children’s hospital, answered an ad for a job—the rest as they say, is history. The job ad led Michael to their current business partners, with whom they founded Advantage Pharmacy, which is now a part of the Platform Alliance Group. When asked about their support network, Michael talks about their mother, family, and existing business partners, Steve and John. A strong support network at home and work has been pivotal for their growth.

Pharmacy View Podcast · Ep 72 Helping Professional Pharmacists Deliver Professional Services

Furthering the conversation, Kavita and Michael delve into the shifts in the Pharmacy Industry. Michael talks about the following:

Rise of the Discounters
The decline in wanting to take Pharmacy Ownership because of perceived barriers
Push for more flexible hours for Pharmacists
Shift from supply-based model to professional services
More Pharmacies are joining groups to get better support in running their business
Rise of the digital age

Even though Michael doesn’t practice law, they hold a law degree and are interested in labor law. In that context, they reference the following during the conversation:

Hollis Vs Vabu
https://en.wikipedia.org/wiki/Hollis_v_Vabu
CFMMEU v Personnel Contracting
https://en.wikipedia.org/wiki/CFMMEU_v_Personnel_Contracting
Superannuation Guarantee (Administration) Act 1992 – SECT 12
http://www5.austlii.edu.au/au/legis/cth/consol_act/sga1992430/s12.html

Michael iterates the two cases to say that contracts are important and that a clear contract with independent contractors can save Pharmacy owners from running risks. There is a pull towards flexible working hours, and while this can hold its advantages, both parties need to be clear as to the terms of the engagement.

In addition to the aforementioned, Michael outlines the challenges in the industry as being:

Labor shortages
Slow upskilling of Pharmacists to provide extra services

Talking further on how fewer students are drawn to Pharmacy Ownership recently, Michael reminisces how earlier that used to be what 90% of Pharmacy students would aspire for. They say that the perceived barriers stop the students from wanting to take up ownership. However, as someone who has spent decades for the betterment of the industry and has learned from experiences, Michael believes that they (more experienced Pharmacists) owe it to the students to help and facilitate their roles in the industry.

And here is a list of Michael’s advice for budding entrepreneurs:

Find a problem that needs a solution
Say yes and back yourself
Surround yourself with people who are more intelligent than you and who complement your skills
Great Ideas are just that until you execute them

Topics Covered

Michael’s background
Michael’s support system
Shifts in the Pharmaceutical Industry
Legal Implications for Independent Contractors
Superannuation for Independent Contractors
Challenges in the industry
Pharmacy ownership for students
Michael’s advice for entrepreneurs

Key Quotes

“Pharmacists are looking for groups or people who are going to help them run a better business.” (8:49 – 8:54)
“Most Pharmacies now are aligned to some group one way or another, whether you can see that by looking at the physical appearance of their shop or they are giving some support via the backend deals or other services. That’s going to continue more and more in the future as well.” (9:14 – 9:22)
“I think it’s the rise digital age now, things like Google Reviews that people read these days. More than ever, we have to be doing it better because the competition is out there. People have got a choice. With the click of a button, they can look at other Pharmacies in the area or maybe other retailers that provide incentives to do so. I think that is really important. Pharmacy’s always been pretty good when it comes to embracing digital, but I think we probably need to ramp that up even more and take it to a new level. (9:25 – 9:54)
“Have a written contract in place between the Principal and the Independent Contractor. And if the terms are clear, then generally, you are okay. (24:47 – 24:59)
“What these two cases have done in the High Court, I think, has clarified the decision to the point that the contract is where you go to first. If that’s clear, then you look no further. In Pharmacies, where we are engaging with locums sometimes every day, you’ve got to have that in place. Otherwise, you run the risk.” (25:09 – 25:32)
“The way I understand it at the moment is that if you are a Pharmacist and you are contracting with an individual as an Independent Contractor, leaving aside what we discussed about in the agreement, it is pretty clear you need to be remitting Super on their behalf. If it is through a trust or a company, you may not have to. But I think, let’s watch that space a little bit.” (30:36 – 31:01)
“It is really going to come to how Pharmacists, Pharmacy Groups, or Pharmacies are able to attract individuals because there’s competition out there. And we’ve seen the Locum-ization of the workforce—people want to pick and choose where they want to be able to work. So, you need to be able to provide an environment where Locum A or Locum B want to come and work in your store because it epitomizes what it is to be a professional Pharmacist delivering professional services.” (32:33 – 33:01)
“There’s this perception that Pharmacy ownership is controlled by groups or individuals or it’s too expensive. But, that’s not the case. I think ownership is rewarding in so many ways.” (34:33 – 34:47)
“You’ve got to find a problem that needs a solution. That’s how entrepreneurs work.” (36:53 – 36:58)
“Entrepreneurship, starting a new business, taking on a new venture—it’s full of risks. And if you think about it too much, you are never going to do it. Say yes and back yourself.” (37:29 – 37:40)