German pharmacies decline as sector warns of underfunding

The number of pharmacies in Germany continued to decline at the start of the year, according to data released on Tuesday by the German Pharmacists' Association.

At the end of March, there were 16,541 pharmacies nationwide, 60 fewer than at the turn of the year, the association said. Since early January, 19 new openings were offset by 79 closures. The figures include both main pharmacies and branches, of which a pharmacy can operate up to three.

Hans-Peter Hubmann, head of the German Pharmacists’ Association, said the supply of medicine to the public remained secure, but warned the trend could not continue for long.

Every closure means longer distances for thousands of patients, he said, adding that the long-term decline was rarely due to individual mismanagement or increased competition, but rather what he described as chronic underfunding of pharmacies.

The sector has long called for an increase in a fixed dispensing fee from €8.35 ($9.75) to €9.50 per prescription package. A proposal by Germany's governing coalition was postponed due to pressure on statutory health insurers.

Health Minister Nina Warken has since said she intends to revisit the planned increase, while also preparing broader cost-containment measures as part of wider healthcare reform.