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Ensuring the Future: 8 Policies to Reset the Healthcare Distribution Sector

After extensive engagement with relevant stakeholders and our members, the Healthcare Distribution Association (HDA) the representative body for wholesale distributors of medicinal products, distributing 95% of all NHS medicines, has developed a call-to-action outlining steps the new Labour Government can take to support the efficient and effective distribution of medicines to patients in the UK. This call-to-action outlines some ‘quick fixes’ which can be implemented within the first 100 days of Government to support the industry as well as some longer term, more institutional changes which will foster longer lasting and more impactful change.

HDA and its member companies believe that the current medicines supply chain is fit for purpose, having withstood COVID-19 shocks, and provides great service and delivers excellent value for patients, healthcare professionals and the UK taxpayer on a daily basis. Every year HDA members deliver 2.1bn packs of medicines to healthcare professionals across the UK, delivering twice per day on average.

A key issue for the sector is that of medicine availability and HDA member companies already dedicate significant systems and resources, working with government, regulators and other supply chain actors to identify, prevent and mitigate such challenges, whether caused by supply disruption, demand increases, or a combination of factors.

The First 100 Days for Action

The HDA urges the new Labour Government to implement measures under five categories within the first 100 days of Government to alleviate some of the most pressing issues facing the medicines distribution sector. The industry faces significant challenges including growing financial issues in community pharmacy, workforce pressures, and a transition to net zero.

Addressing these issues within the first 100 days is essential for ensuring the healthcare distribution industry’s continued resilience, efficiency, and viability.

1. Digital First Regulation – Ensure Parliamentary time to allow debate and endorsement of paperless invoicing throughout the medicines supply chain (by laying appropriate Statutory Instruments). This will create a safer, more efficient and environmentally sustainable record of transactions.

2. A Strong Medicines Supply Chain – Greater financial support for the sector should be considered, including long-term, sustained and appropriate funding for community pharmacies. Incentives for global manufacturers to supply the UK are also critical in ensuring that our sector has enough medicines to distribute to an ever-increasing number of patients. NHS Hospitals should be mandated to pay for medicines in a timely manner.

3. Accelerating The Transition to Net Zero – Re-evaluate regulatory requirements regarding the temperature control of ambient medicines during transportation, balancing patient safety with the imperative to reduce energy consumption.

4. Immediate action to unlock Controlled Drug regulation – healthcare distributors are currently experiencing significant delays to the Controlled Drug licensing process, potentially putting the supply of critical treatments to patients at risk.

5. Business Rates – Companies responsible for medicines distribution should be treated as a special case during any reforms of business rates and not conflated with other warehouse-based sectors, who do not provide life-saving treatments for high-street pharmacies, patients and the NHS. HDA members support the retail sector rather than compete with it.

Institutional Actions for Longer-Term Change

Alongside the above ‘quick fix’ actions, longer-term, more sustained change is essential to secure and maintain a robust and effective pharmaceutical supply chain. The measures outlined below list the actions that HDA believes the Government should consider in order to foster long lasting and impactful change within the industry.

1. An Adaptive and Risk-Based Approach to Regulation – Regulators to place an enhanced focus on a risk-based approach to regulating the sector which is consistently compliant with regulations, including a greater focus on businesses and organisations with higher-risk operating models. 

2. Funding The Transition to Net Zero – Consider incentives and financial support for healthcare distributors, as they transition on behalf of the NHS, to practices and operations which enable the move to Net Zero, in particular the electrification of delivery fleets. More specifically, an intensive and frequent medicines distribution network, operating across the four countries of the UK, urgently requires robust electric vehicle charging infrastructure.

3. Staffing and Workforce– Consider additional funding, incentives and support for regulation-mandated training to underpin the upskilling of medicines supply chain staff, to match rising demand and increase training-related requirements.

These immediate and sustained actions are crucial to revitalising the medicines distribution sector and ensuring that the UK retains its resilient, efficient, and sustainable healthcare system.

Note to Editors:

The Healthcare Distribution Association (HDA) represents businesses who supply medicines, medical devices and healthcare services to patients, pharmacies, hospitals, dispensing doctors, and the pharmaceutical industry.

HDA members operate across the four nations of the United Kingdom, enabling a safe, efficient and high-quality supply chain for the healthcare sector, delivering 95% of the NHS’s medicines.

As the trade body representing all leading companies that provide pharmaceutical wholesaling services across the UK, the HDA has always supported proportionate regulation to ensure the resilience of the UK’s healthcare supply sector while promoting innovation and adaptability.

Further Questions

If you have further questions about the HDA’s ‘Ensuring the Future: 8 Policies to Reset the Healthcare Distribution Sector’ please contact our Executive Director Martin Sawer, at msawer@hdauk.co.uk.

Media Contact

For all media inquiries, please contact secretariat@hdauk.co.uk