Locum to pharmacy owner — your first NHS contract

In summary: Many community pharmacy owners began their careers as locum pharmacists. Making the transition from locum to pharmacy owner requires navigating the NHS market entry process — applying for inclusion in the pharmaceutical list and demonstrating that your proposed pharmacy would meet a need or provide benefits to the local population. This guide explains what is involved and what you need to prepare.

The first step — is your proposed site viable?

Before spending time and money on an application, the most important question to answer honestly is whether your proposed site has a realistic prospect of success. The NHS (Pharmaceutical and Local Pharmaceutical Services) Regulations 2013 set strict criteria for new pharmacy applications — a new pharmacy cannot open simply because a pharmacist wants one. The application must demonstrate that the proposed pharmacy would meet a current or future need, improve access, or provide unforeseen benefits.

TI Pharmacy Consultancy provides a free initial assessment of proposed sites. We review the local pharmaceutical needs assessment, the existing pharmacy landscape and the population data to give you an honest view of your prospects before you commit to an application.

Understanding market entry

Market entry is the process of being included in the NHS pharmaceutical list for the area in which you want to operate. It is the essential prerequisite for providing NHS pharmaceutical services — dispensing NHS prescriptions and receiving NHS payments. Without inclusion in the pharmaceutical list, you cannot operate as an NHS pharmacy.

Applications are submitted to Primary Care Support England (PCSE) and determined by the integrated care board (ICB) for the relevant area. The process involves a formal notification period during which existing contractors can make representations, and may involve an oral hearing before the ICB’s pharmaceutical services regulations committee.

What you need before applying

• A proposed site address — the specific premises where you intend to open
• Confirmation that the premises can be secured (lease agreed in principle or heads of terms)
• A superintendent pharmacist identified (can be yourself if you are on the GPhC register)
• Fitness information for yourself and the superintendent
• The application fee payable to PCSE
• A clear understanding of which market entry ground your application will rely on

The application process — step by step

Site assessment. Before submitting, TI Pharmacy Consultancy reviews your proposed site against the local PNA, existing pharmacy provision and population data to assess viability and identify the strongest application route.

Application preparation. We prepare the full application — form, covering letter, evidence bundle and fitness documentation — ensuring it is complete and correctly presented before submission to PCSE.

Submission and notification. Once PCSE accepts the application, it notifies interested parties — neighbouring pharmacies, GPs and other contractors — who have the opportunity to make representations during the notification period.

Representations and hearing. If representations are received, TI Pharmacy Consultancy prepares responses and attends any oral hearing before the ICB’s committee.

Determination. The ICB issues its decision. If the application is granted, there are further steps to opening — GPhC premises registration, fit-out and staffing. If refused, TI Pharmacy Consultancy advises on appeal prospects.

Buying an existing pharmacy versus applying for a new contract

Many first-time pharmacy owners choose to buy an existing pharmacy rather than apply for a new contract. Buying an existing business avoids the market entry process but requires a change of ownership application to PCSE. TI Pharmacy Consultancy advises on both routes and can help you understand the relative advantages of each for your specific circumstances.