PBS Sales Process

The Australian Community Pharmacy Authority (ACPA) website contains the ‘Applicant’s Handbook’ which details the application process, rules and documentation required to apply for a Pharmaceutical Benefits Scheme (PBS) number.

Applications are submitted to Medicare in your state office, who then refers valid applications to the ACPA for consideration at their regular meetings. After consideration, ACPA will make a recommendation (to approve or otherwise) the application and it is sent back to Medicare for final approval.

Raven’s recommend that you read and understand the requirements in the ‘Applicant’s Handbook’, however we are pleased to assist you in your PBS number purchase by supplying you with a list, if requested, of suitably experienced solicitors, answering your queries and ‘walking you through’ the entire process, generally making the whole experience much easier for you.

There are TWO main reasons why buying an existing PBS number is a preferred option instead of applying for a new number to be awarded. These are - it is generally far quicker and recently very few new numbers are being issued.

Buying or selling a PBS number can still take some time to complete and this is because there are some variables in the process – here are some:

• Prices do need to be agreed and any negotiation can take some time
• Finance MUST be in place as ‘subject to finance’ is not an acceptable condition for a PBS Business Agreement.  Note also that GST is payable on all PBS number purchases
• All documentation MUST be complete and in order or the Application may be deferred and consequently may have to be re-submitted
• Note the time frames for submitting an application to Medicare covers about 4 weeks, and then it is approximately 5 weeks from the close of monthly applications to the ACPA meeting (refer to the meeting dates listed on the ACPA website)
• If more than one application for a location is received or if the ACPA meeting runs out of time, your application may be deferred until the next meeting
• There could be some further information requested from third parties (other pharmacies in the area) which could delay the application process

In a perfect World, a successful application would go like this:

    1.   Vendor and Purchaser agree a price and sign the Business Agreement  subject to acceptable conditions eg: subject to ACPA and Medicare approval

    2.   Purchaser has all finance in hand (as ‘subject to finance’ is not an acceptable PBS Business Agreement condition)

    3.   Both parties sign the Form 90 - Relocation of a Pharmacy application

    4.   This complete application consists of:

•   A complete and signed Section 90 form nominating the pharmacy location rule under which the application is made; 
•   Evidence that the applicant has a legal right to occupy the proposed premises;
•   A floor plan of the proposed premises 
•   Evidence that the proposed premises can be used for the purpose of operating a pharmacy;
•   A declaration regarding whether the proposed premises are accessible from within a supermarket;
•   Evidence relating to the relevant distance (not required for an application made under Rule 101, 110 or 111); and 
•   Evidence of when the applicant will commence trading at the proposed premises (eg: copy of signed Lease)

    5.   Application sent to Medicare (within ACPA time frame)

    6.   Medicare refers a valid application to ACPA

    7.   ACPA considers the application under the rules and makes a recommendation

    8.   ACPA advises delegate at Medicare of their recommendation

    9.   Medicare approves application and advises accordingly

    10. Vendor and Purchaser settle the purchase and Purchaser commences trading!

As Raven’s have been selling PBS numbers for many years we can certainly assist in making the process easier for you.

For example - once a Purchaser is ready to submit an Offer:

• Raven’s will draft a formal written offer to be submitted to the Vendor/s. 
• Once the Offer & Acceptance is signed, Raven’s, as stakeholder, will issue a request for the Purchaser to pay the deposit which will held in trust until completion.
• The Section 90, signed by the Vendor, will be sent to the Purchaser who will compile all documents and submit the application.
• Raven’s can draft a Business Agreement which will be issued to the Vendor’s Solicitor, OR the Vendor’s Solicitor may draft the Bussiness Agreement.
• The Business Agreement is signed by all parties.
• The Section 90, signed by the Vendor, will be sent to the Purchaser who will compile all documents and submit the application.
• After the recommendation and approval the Vendor will issue to the Purchaser a tax invoice.
• Settlement funds are transferred on settlement date and distributed.

Please contact our PBS Sales specialists

Lorraine Lindgren or Greg Aspeling for more information.
Phone 1800 670 440 or email info@ravens.com.au