Why you need to be vigilant when purchasing a pharmacy
The pharmacy sector is highly regulated, owners have a legal duty to protect the well-being of patients and the public. Understanding these obligations is essential before you buy.
Pharmacies must comply with the standards set by the General Pharmaceutical Council (GPhC). Before taking ownership, check that all requirements are met.
If a pharmacy does not meet GPhC regulations, correcting this can be costly and time-consuming. Noncompliance may also lead to suspension or loss of registration.
Governance agreements when purchasing a pharmacy
It is critical to thoroughly investigate the target pharmacy’s operations as part of due diligence, and ensure full compliance before completion of the purchase; this includes governance arrangements.
This does not typically pose a problem for pharmacists buying a pharmacy as a sole trader, as they are responsible for the pharmacy’s governance.
On the other hand, limited companies that do not already own a pharmacy premises must nominate a superintendent pharmacist to run the pharmacy in order to comply with GPhC regulations.
The regulations also require the GPhC to approve the nomination of the superintendent pharmacist.
Legal compliance for your employees & premises
Check that all staff are competent and properly qualified under GPhC regulations. Employees must also comply with confidentiality, health and safety, and continuing professional development requirements.
The premises must also meet all GPhC health and safety standards. Check that the property has planning consent for pharmacy use and that all required insurance policies are current and in the correct name.
Securing local authority consent for pharmacy use can be costly and take time. Make sure your purchase agreement is conditional on this approval.
Equipment, management /storage of medicines & medical devices
Medicines and medical devices must be stored and managed safely, following GPhC regulations. Before you buy, check that staff use correct procedures and that pharmaceutical waste is disposed of properly.
All pharmaceutical equipment and facilities must be safe and suitable for pharmacy use. All pharmacy equipment and maintenance and repairs records should therefore be checked by an appraiser.
Any insurance policies, loans taken against equipment, or equipment leases should also be thoroughly examined.
Contracts & Legal obligations when purchasing a pharmacy
Review all contracts held by the pharmacy, including NHS contracts, supplier agreements, and service contracts for CCTV and waste disposal. Check any other agreements relevant to business operations.
Confidentiality infrastructure, the buyer must verify whether the pharmacy is registered with the Information Commissioner’s Office, as this is a legal requirement.
Protecting patient information requires technical safeguards, including firewalls, anti-virus software, and secure data backup.
The business’s IT infrastructure should therefore also be examined before completion of the transfer.
The need to protect patients’ information also means that certain technical features must be in place, such as firewalls, anti-virus software, and a secure data-backup system.
The business’s IT infrastructure should therefore also be examined before completion of the transfer.
Talk to Orwins for legal advice & guidance on buying a pharmacy
Getting the right guidance with so many regulations to consider can be a daunting prospect.
However, with proper legal guidance, purchasing a pharmacy can be as straightforward as purchasing any other business; talk to our solicitors at Orwins to find out how we can help guide you through the process with ease.
