CEO’s Insights: The Negotiating Conundrum (BLOG)

Published: 30/07/24

Our core purpose is to support and develop a viable community pharmacy network, negotiation is obviously central to this and to your activities.  

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Over the years I would argue Community Pharmacy Scotland (CPS) have been relatively successful regarding negotiations. I’m sure there are things my Board and I would look back on over time, and with hindsight maybe have done something a bit differently but, overall funding wise, I believe Scotland's pharmacy network is in a better place due to our efforts.  

“In many ways relationships have never been as important as they are now”

What do I believe are the important principles that have enabled this? 

1. Relationships
2. Trust 

3. Honesty 
4. Seek first to understand’ ’Win win’ 

All these factors are huge in any negotiation. The Scottish Government, believe it or not, want the same as we do. They want a vibrant community pharmacy network that is enabled to deliver top class services to patients, whilst being a vital cog in the NHS primary care ecosystem. 

“We will continue to work hard to obtain the best deal for you, our community pharmacy network”

Having positive relationships based on mutual trust, with honesty included, seems so obvious. However, without these relationship building blocks, negotiations of all kinds can often break down. These factors do not mean you cannot disagree or challenge each other, that would make for an unhealthy negotiating environment if everything was plain sailing. 

Whilst the Scottish Government want the same outcomes, there are also things that must be recognised on both sides. Firstly, understanding the position of the opposite side is important and should inform thinking. Second to this, it is essential to look for wins on both sides. The latter has been obvious in the shaping of NHS Pharmacy First Scotland and the introduction of an independent prescribing service in recent years. These developments benefit both sides; the Scottish Government, in terms of delivering services required for patients, and the community pharmacy network, delivering value and a reason for being as we go forward and evolve service provision. These developments come at a cost though and this is generally recognised on both sides.  

“CPS intensely models funding, to scope out scenario plans, and builds proactive proposals using this modelling to support our arguments”

In recent years, the evidence base has become more important. As funding becomes tighter the justification for funding (in terms of costs and extra resource) becomes more acute. CPS intensely models funding, to scope out scenario plans, and builds proactive proposals using this modelling to support our arguments. 

Recent years have seen the Scottish Government struggle to balance the books. This has unfortunately had an impact on the normal timelines for negotiations, last year it was into July before any agreement was reached. This year with finances even more stretched, the timelines are being challenged even further. This is not helpful for CPS members already experiencing increasing costs and looking for certainty to support investment in their businesses. We understand this, the direct civil servants are aware of this, but the national finance teams are tightening the purse strings and more of the above work is needed. Our relationships are tested by the financial pressures which disrupt the normal negotiating process. In many ways relationships have never been as important as they are now. 

With every negotiation you have to be prepared to walk away and illustrate the consequences of not being able to reach an agreement. In community pharmacy’s case, insufficient funding could lead to a reduction in the ability of contractors to provide services, whether that be the services themselves or reduced availability of services (e.g. through opening hours). No one wants this, but it is the reality that is understood on both sides of the negotiating table. So far, despite a prolonged negotiation period, discussions remain constructive. The CPS Board and Negotiating Team will exhaust all avenues before going down any other path. We will continue to work hard to obtain the best deal for you, our community pharmacy network. 

Please send any questions relating to this blog to enquiries@cps.scot

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