Purchasing a business involves careful legal planning, and this is particularly true for pharmacies. The pharmacy sector is highly regulated, and owners are legally responsible for safeguarding the health and wellbeing of patients and the public. To ensure a smooth acquisition, there are several crucial factors to consider before completing the purchase.
1. Complying with the GPhC
All pharmacies must comply with the standards set by the General Pharmaceutical Council (GPhC). Before acquiring a pharmacy, it is essential to conduct thorough due diligence to ensure the business is fully compliant. Non-compliance can be costly to rectify and, in severe cases, could result in the suspension or revocation of the pharmacy’s registration. Ensuring compliance from the outset will protect your investment and minimise risks.
2. Governance Arrangements
GPhC regulations require clear governance structures. Pharmacists buying a pharmacy as sole traders are typically responsible for governance themselves. However, limited companies that do not already own pharmacy premises must nominate a superintendent pharmacist, whose appointment must be approved by the GPhC. This step is vital to maintain regulatory compliance.
3. Employees
All pharmacy staff must be competent and appropriately qualified under GPhC regulations. Buyers should verify that employees comply with confidentiality, health and safety requirements, and the GPhC’s continual professional development (CPD) obligations. Ensuring staff compliance protects both patients and the business.
4. Pharmacy Premises
The premises must meet all GPhC health and safety standards and have proper planning consent from the local authority for use as a pharmacy. Additionally, all legally required insurance policies must be valid and in the correct name. Obtaining local authority approval can be time-consuming and costly, so purchase agreements should be conditional on securing this consent.
5. Management and Storage of Medicines and Medical Devices
Pharmacies must safely store and manage all medicines and medical devices in line with GPhC standards. Buyers should confirm that proper storage procedures are followed, and that pharmaceutical waste is disposed of according to environmental regulations. Ensuring continuity of these practices post-transfer is crucial for safe operations.
6. Equipment and Facilities
All pharmaceutical equipment must be safe and suitable for use. Buyers should review maintenance and repair records and examine any insurance policies, loans, or leases linked to equipment. A full appraisal ensures that all facilities meet regulatory requirements and are fit for purpose.
7. Contracts
Buyers should review all contracts associated with the pharmacy, including NHS agreements, supplier contracts, service agreements, and other operational arrangements. Understanding these obligations before purchase protects against unexpected liabilities and ensures business continuity.
8. Confidentiality Infrastructure
Pharmacies must be registered with the Information Commissioner’s Office and implement robust data protection measures. Buyers should check that firewalls, anti-virus software, secure backups, and other IT safeguards are in place to protect patient information.
9. Getting the Right Guidance
With numerous regulations to consider, buying a pharmacy can be complex. Expert legal guidance is essential to navigate compliance, contracts, and operational checks. With proper support, purchasing a pharmacy can be as straightforward as acquiring any other business.
For more information or for expert advice on business or personal legal issues, contact us by email at info@carterbond.co.uk or call us on 020 3475 6751.
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