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Financial aspects of community pharmacies in Slovakia (2009-2014) Finančné aspekty verejných lekární na Slovensku v rokoch 2009-2014

Financial aspects of community pharmacies in Slovakia (2009-2014) Finančné aspekty verejných... Keywords Kúcové slová: INTRODUCTION Pharmaceutical care is one of the core areas of health care. Pharmaceutical care provides citizens with access to medicines, medical devices, dietetic food and supplementary * E-mail: hkomjathy@gmail.com © European Pharmaceutical Journal products, usually within 24 hours, at least 5 days a week. Along with the aforementioned, it also provides expert advice on the correct use of medicines (Clifford et al., 2006, Blenkinsopp et al., 2000, Mináriková et al., 2015a), dietetic food, proper use of medical devices (Morrow et al., 1993, Malovecká et al., 2014, Malovecká et al., 2015a, Malovecká et al., 2015b) and expert advice in the field of prevention (Cain et al., 2001, O'loughlin et al., 1999), nutrition (Howard et al., 2001, Mináriková, 2015b), diet and a healthy lifestyle (Chewning and Schommer 1996, Kapoor, 2007). In recent years, community pharmacies have undergone a significant transformational change (Malovecká et al., 2015c). Prevailing among them are private properties and independent management of their business (Malovecká et al., 2015d). Provision of pharmaceutical care is solely the decision of the owner and that, like any business entity, is managed with the long-term sustainability of a community pharmacy (Malovecká et al., 2015e). Pharmaceutical care in European countries is provided in a regulated or a deregulated system. The type of the regulation of pharmaceutical care has an impact on its availability, quality and economic stability of the community pharmacies. The introduction of deregulation in the establishment of community pharmacy was to ensure adequate availability of pharmaceutical care, evenly distributed between regions, especially between urban and rural areas (such as, England, Ireland, Netherlands, Norway and Sweden). In countries, such as Norway and Sweden, the introduction of deregulation has led to an increase in the number of community pharmacies, and in particular, to their uneven distribution within the country (more in cities, much less in the countryside) (Westerlud et al., 2006, Balgard, 20112, Todd et al., 2014, Wagner et al., 2009). In countries with deregulated pharmaceutical care, intervention in the ownership rules (concession or lack of ownership rules) has led to the establishment of a new structure that provides pharmaceutical care through a network of community pharmacies and vertical integrations with large international wholesale companies owning pharmacy chains that often control the market (seen mainly in Norway) (Vogler et al., 2012). This situation may affect the availability of medicines in pharmacies, as well as overall patient satisfaction with pharmaceutical care (Mináriková, 2015c, Mináriková et al., 2015d). Therefore, the presence of measures relating to the availability of medicines in stock (FIP/WHO, 2012) and the time taken by the pharmacy to provide medications (present in some countries such as Austria, Denmark, Finland, Norway and Spain), could help to prevent a shortage of medicines and shorten the long waiting times for patients (Vogler et al., 2006). Equally important in this context is the electronic health system, which increases the overall level of pharmacy services and patient satisfaction with the help of electronic prescription service and provides other benefits as well (Minarikova and Panayiotis, 2015e). In Slovakia, there are no demographic and geographic regulation criteria for the establishment of a community pharmacy, and therefore, Slovakia can be included among countries with deregulated pharmaceutical care (Ministry of Health Slovak Republic, 2011). The presented article provides an assessment of the financial development in community pharmacies in deregulated pharmaceutical care in the horizon of six years (2009-2014), and its aim is to highlight the evolution of financial parameters which could be used in the description of community pharmacies' management. METHODS Data source The data files from 2009-2014 on the financial performance of selected community pharmacies were from the Register of Financial Statements (profit and loss statement and balance sheet) at Ministry of Finance of the Slovak Republic (Ministry of Finance of the Slovak Republic, 2015). The financial statements for the time span 2009-2011 were in scanned form (typewriter or handwritten), and the financial statements for the time span 2012-2014 were in electronic spreadsheets. The financial data was available only for the community pharmacies that were running their business in a legal form as limited liability companies (Ltd.). Selection criteria A selected group of pharmacies consisted of 194 community pharmacies and represented more than 10 percent of all the pharmacies in Slovakia. The selection criteria respected the territorial division of the Slovak Republic. There are 79 districts in Slovakia. From each district, 2 community pharmacies were selected (hence, a total of 158 pharmacies) and subsequently, the group was supplemented by community pharmacies from districts with higher populations (36 pharmacies). The selection process took into account the size of municipalities (city or village) and location (at or near health centres, shopping centres and housing estate). Valuated parameters The data file on financial performance of selected community pharmacies was evaluated on gross profit, net profit, revenues from sales of goods and services, operating expenses, total assets, inventory, short-term receivables, total receivables, financial assets, owner's equity, total liabilities, and current liabilities. Microsoft Excel was used to process the data. The outcomes of the evaluation were organised and presented in tables. RESULTS AND DISCUSSION In the assessed period 2009-2014, the valuation revealed that 25% (25th percentile) pharmacies reached gross profit from -2119 to 533 euro, next 50% (75th percentile) pharmacies reached from 34 016 to 45 606 euro, and the last 25% Hajnalka Komjathy Table 1. The characteristics of community pharmacies by gross profit, net profit, revenues from sales of goods and services, and operating expenses in the years 2009-2014 (in euro) Characteristics / Years Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile 2009 31 138 6 077 1 440 286 -248 791 -349 37 405 24 236 3 687 1 137 775 -249 954 -349 30 733 815 225 693 482 6 949 428 -4 501 341 738 1 111 373 795 808 634 541 7 123 156 0 324 406 1 111 197 2010 45 229 11 383 1 490 174 -105 815 533 45 606 2011 2012 2013 23 939 13 390 337 477 -159 160 -353 36 912 17 370 10 033 258 815 -162 447 -828 28 365 1 005 378 762 735 7 397 353 0 421 549 1 294 112 994 727 754 319 7 344 317 24 408 809 1 255 667 2014 24 473 11 047 254 877 -181 426 -892 35 484 19 483 8 143 373 673 -173 194 -2 577 27 775 1 000 871 773 027 6 997 364 0 402 216 1 232 108 989 613 751 378 6 922 814 0 404 852 1 216 923 Gross profit 24 910 20 393 11 383 3 332 1 490 174 1 000 168 -105 815 -927 603 533 -2 119 45 606 34 016 Net profit 32 843 13 204 15 231 9 579 7 877 2 553 1 088 040 1 235 623 616 017 -105 815 -3 319 209 -327 603 532 501 -2 119 41 876 37 895 25 810 Revenues from sales of goods and services 914 589 1 031 862 923 748 758 778 807 154 754 987 4 695 606 14 847 567 6 623 654 -216 -2 619 2 434 380 431 380 499 404 686 1 201 721 1 285 224 1 240 575 Operating expenses 822 197 1 018 059 874 036 652 969 745 015 695 439 4 797 196 18 162 063 6 138 078 0 0 9 232 331 039 373 119 355 594 1 105 940 1 263 736 1 179 309 (maximum) pharmacies reached from 254 887 to 1 490 174 euro per year. Since 2011, the maximum value of the gross profit was falling (from 1 490 174 euro in 2011 to 254 877 euro in 2014). Mean gross profit (from 20 393 to 45 229 euro) was above the median (from 3 332 to 13 390 euro), and that showed that more pharmacies ran their businesses with lower gross profits. From the group of community pharmacies, 25% (25th percentile) reached the net profit from - 2 577 to 532 euro, next 50% (75th percentile) pharmacies from 25 810 to 41 876 euro, and the last 25% (maximum) pharmacies up to 258 815 ­ 1 235 623 euro per year. Since 2011, the maximum net profit fell from 1 235 623 euro in 2011 to 373 673 euro in 2014. Mean (from 13 204 to 32 843 euro) was again above the median (from 3 687 to 10 033 euro) and pointed out that more pharmacies run their business with lower net profit. The assessment of revenues from sales of goods and services showed a big gap between 75th percentile (from 1 111 373 to 1 294 112 euro) and maximum (from 4 695 606 to 14 847 567 euro) per year. It means that only some pharmacies could generate high revenue from the sales of goods and services. Half of the pharmacies (50th percentile/ median) generated revenue from sales of goods and services in the range of 693 482 to 807 154 euro per year. Valuation of operating expenses reported on a big gap between 75th percentile (from 1 105 940 to 1 263 736 euro) and maximum (from 4 797 196 to 18 162 063 euro) per year. It means that some pharmacies had very high operating costs. Other pharmacies kept their operating expenses lower (50th percentile, from 634 541 to 754 319 euro) and some pharmacies operated with much lower expenses (25th percentile, from 324 406 to 408 809 euro) per year. The evaluation of total assets revealed that maximum of the valuated characteristics had an increasing trend (from 1 502 264 euro in 2009 to 4 307 081 euro in 2014). Other valuated characteristics of parameter were almost stable (25th percentile from 126 656 to 139 988 euro; 50th percentile from 233 256 to 262 247 euro; 75th percentile from 448 778 to 482 807 euro). The maximum of inventory fell slightly from 389 781 in 2009 to 316 476 euro, but in 2014, it increased up to 555 353 euro. Table 2. The characteristics of community pharmacies by total assets, inventory, short-term receivables and total receivables in the years 2009-2014 (in euro) Characteristics / Years Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile 2009 326 886 238 662 1 502 264 0 130 027 448 778 60 940 53 425 389 781 0 28 189 78 091 128 737 95 771 1 074 495 0 40 625 163 672 134 056 103 177 1 076 654 -173 50 203 166 394 2010 376 996 252 202 2 711 992 0 139 988 491 027 2011 2012 378 534 233 256 3 310 664 15 035 126 656 483 495 71 437 58 471 387 752 0 34 323 91 748 147 031 95 341 22 519 72 -11 278 42 268 172 482 151 293 98 292 2 251 972 -11 278 48 610 190 851 2013 385 069 237 126 4 158 475 2 898 134 948 482 807 70 937 60 536 316 476 0 36 332 87 961 148 060 98 005 3 083 673 -3 622 48 762 160 848 152 933 98 074 3 083 673 -3 622 49 778 163 150 2014 380 474 240 619 4 307 081 0 132 086 494 298 74 471 64 447 555 353 0 33 440 89 445 142 338 90 884 3 315 942 -8 046 42 122 161 176 146 966 96 080 3 315 942 -8 046 43 683 163 842 Total assets 395 603 262 347 3 420 231 11 099 138 793 503 447 Inventory 68 614 72 678 57 848 56 718 376 661 390 385 0 0 34 887 36 080 90 177 91 534 Short-term receivables 15 1028 169 739 97 390 121 156 1 951 133 2 362 549 -18 884 0 42 129 57 972 183 975 211 236 Total receivables 157 830 176 382 102 626 125 517 1 951 133 2 362 549 -18 884 1 148 51 081 60 032 202 709 217 327 Up to 75% (75th percentile) pharmacies kept inventory from 78 901 euro to 91 748 euro; 50% (50th percentile) from 53 425 to 64 447 euro and 25% (25th percentile) from 28 189 to 36 332 euro. The maximum of short-term receivables increased considerably from 1 074 495 euro in 2009 to 3 315 942 euro in 2014. In contrast, since 2011, all the remaining valuated characteristics were falling (75th percentile from 211 236 to 161 176 euro, 50th percentile from 121 156 euro to 90 884 euro, 25th percentile from 57 972 euro to 42 122 euro). The total receivables followed the same pattern as the shortterm receivables. This was due to the fact that total receivables were predominantly made up of short-term receivables. The maximum of total receivables rose from 1 076 654 euro in 2009 up to 3 315 942 euro in 2014, but the rest of the valuated characteristics since 2011 fell (75th percentile from 217 327 to 163 842 euro, 50th percentile from 125 517 to 96 080 euro, 25th percentile from 60 032 to 43 683 euro). The assessment of financial assets exposed that maximum of the valuated parameters had an increasing trend (from 446 232 euro in 2009 to 834 320 euro in 2014). The 25th percentile was nearly stable (from 6 863 to 9 414 euro). Higher oscillation expressed 50th percentile (from 21 387 to 30 448 euro) and the highest oscillation had 75th percentile (from 45 257 to 73 310 euro). The owners' equity expressed a remarkable evolution. The slight changes in 25th percentile that reached values from 6 031 to 8 951 euro and 50th percentile that reached values from 26 699 to 47 125 euro were in contrast with the mean (69 224 to 136 332 euro) and 75th percentile (79 299 to 172 704 euro), where we recorded a significant increase. That points to the fact that owners were showing lower interest in loans and were increasingly financing their businesses from their own resources. In the assessed period, the total liabilities showed a decreasing trend in almost all valuated characteristics (25th percentile from 90 601 in 2009 to 79 525 in 2014, 50th percentile from 174 944 euro in 2009 to 162 175 euro in 2014, 75th percentile 364 313 in 2009 to 342 953 euro in 2014). Contrary to the presented characteristics of parameter is Hajnalka Komjathy Table 3. The characteristics of community pharmacies by financial assets, owner's equity, total liabilities and current liabilities in the years 2009-2014 (in euro) Characteristics / Years Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile 2009 54 430 28 601 446 232 -48 315 7 903 68 246 69 224 26 699 1 166 573 -320 689 6 230 79 299 259 734 174 944 1 822 953 -1 672 90 601 364 313 221 669 146 835 1 815 381 -2 713 78 205 300 807 2010 57 488 30 448 530 620 -76 788 9 414 69 279 91 840 38 398 2 132 270 -248 302 7 852 99 957 282 672 188 606 2 614 204 -3 521 104 948 363 292 239 853 165 962 2 368 508 -4 574 92 572 310 298 2011 Financial assets 48 924 21 387 653 468 -49 792 7 525 45 257 Owner's equity 85 148 47 125 2 142 819 -3 557 662 8 951 128 330 Total liabilities 313 351 198 104 5 176 998 2 337 103 856 379 350 Current liabilities 264 364 163 917 5 156 333 0 84 157 300 198 2012 51 846 21 755 694 315 -43 962 6 871 58 461 77 824 39 163 2 117 949 -4 485 266 6 362 128 558 303 687 169 578 4 518 491 1 734 88 359 364 253 292 335 138 132 9 114 421 286 70 021 290 270 2013 56 373 26 974 820 912 -32 318 6 863 66 153 118 451 42 152 2 094 620 -194 999 8 198 159 396 301 591 174 580 4 518 547 148 86 512 335 733 253 190 148 804 4 497 815 0 63 497 275 311 2014 61 771 24 409 834 320 -14 074 6 905 73 310 136 332 42 717 2 595 958 -146 592 6 031 172 704 285 896 162 175 4 335 779 -790 79 525 342 953 236 793 128 875 4 315 030 0 67 863 269 946 maximum, that rose in 2009-2011 from 1 822 953 to 5 176 998 euro and then slightly dropped to 4 335 779 euro. The current receivables expressed nearly the same proceedings as the total liabilities in case of 25th, 50th and 75th percentiles. These characteristics showed a decreasing trend (25th percentile from 78 205 to 67 863 euro, 50th percentile from 146 835 to 128 875 euro, 75th percentile from 300 807 to 269 946 euro). Only the maximum of current liabilities expressed an inclining trend in 2009-2012 from 1 815 381 to 9 114 421 euro. In the following period 2013-2014, a declining trend was recorded to 4 315 030 euro. The evaluation of financial parameters and their characteristics presents the basic information on the financial development, performance and management of selected community pharmacies in the period 2009-2014. They provide us with unique information that has never been the subject of investigation and publication of any national, private or professional association on such a large sample of community pharmacies, neither in the Slovak Republic nor in Europe. The presented data can be used for further assessment of factors (such as legislation, demographic development, health needs of population, etc.) that might have an impact on their value and direction of evolution. Unrepresentative sample of observed pharmacies could cause huge differences between pharmacies in all financial parameters. Practical findings will be required for further analysis in this field. The work assesses the areas that should be the subject of follow-up and in-depth evaluation, or that can be the basis for the proposal of additional research. The evaluation of community pharmacy operations and overall performance is nowadays very crucial as the European Union countries are more or less facing the consequences of the financial crisis, recession and serious socioeconomic and political changes. CONCLUSIONS The European community pharmacy sector is a highly regulated area with various degrees of liberalization in individual countries. Liberalization in community pharmacy usually comprises of liberalization of the establishment rules for new pharmacies, ownership and OTC medicines' sale outside the pharmacies. Liberalization in community pharmacy in Slovakia, according to the legislative changes valid from the year 2004, brought new conditions of establishment of new pharmacies without any demographic and geographic criteria. The impact of this liberalization on medicine prices or on availability of medicines is expected, but the evidence about this impact on the pharmacies market http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Acta Facultatis Pharmaceuticae Universitatis Comenianae de Gruyter

Financial aspects of community pharmacies in Slovakia (2009-2014) Finančné aspekty verejných lekární na Slovensku v rokoch 2009-2014

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de Gruyter
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2453-6725
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2453-6725
DOI
10.1515/afpuc-2016-0013
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Abstract

Keywords Kúcové slová: INTRODUCTION Pharmaceutical care is one of the core areas of health care. Pharmaceutical care provides citizens with access to medicines, medical devices, dietetic food and supplementary * E-mail: hkomjathy@gmail.com © European Pharmaceutical Journal products, usually within 24 hours, at least 5 days a week. Along with the aforementioned, it also provides expert advice on the correct use of medicines (Clifford et al., 2006, Blenkinsopp et al., 2000, Mináriková et al., 2015a), dietetic food, proper use of medical devices (Morrow et al., 1993, Malovecká et al., 2014, Malovecká et al., 2015a, Malovecká et al., 2015b) and expert advice in the field of prevention (Cain et al., 2001, O'loughlin et al., 1999), nutrition (Howard et al., 2001, Mináriková, 2015b), diet and a healthy lifestyle (Chewning and Schommer 1996, Kapoor, 2007). In recent years, community pharmacies have undergone a significant transformational change (Malovecká et al., 2015c). Prevailing among them are private properties and independent management of their business (Malovecká et al., 2015d). Provision of pharmaceutical care is solely the decision of the owner and that, like any business entity, is managed with the long-term sustainability of a community pharmacy (Malovecká et al., 2015e). Pharmaceutical care in European countries is provided in a regulated or a deregulated system. The type of the regulation of pharmaceutical care has an impact on its availability, quality and economic stability of the community pharmacies. The introduction of deregulation in the establishment of community pharmacy was to ensure adequate availability of pharmaceutical care, evenly distributed between regions, especially between urban and rural areas (such as, England, Ireland, Netherlands, Norway and Sweden). In countries, such as Norway and Sweden, the introduction of deregulation has led to an increase in the number of community pharmacies, and in particular, to their uneven distribution within the country (more in cities, much less in the countryside) (Westerlud et al., 2006, Balgard, 20112, Todd et al., 2014, Wagner et al., 2009). In countries with deregulated pharmaceutical care, intervention in the ownership rules (concession or lack of ownership rules) has led to the establishment of a new structure that provides pharmaceutical care through a network of community pharmacies and vertical integrations with large international wholesale companies owning pharmacy chains that often control the market (seen mainly in Norway) (Vogler et al., 2012). This situation may affect the availability of medicines in pharmacies, as well as overall patient satisfaction with pharmaceutical care (Mináriková, 2015c, Mináriková et al., 2015d). Therefore, the presence of measures relating to the availability of medicines in stock (FIP/WHO, 2012) and the time taken by the pharmacy to provide medications (present in some countries such as Austria, Denmark, Finland, Norway and Spain), could help to prevent a shortage of medicines and shorten the long waiting times for patients (Vogler et al., 2006). Equally important in this context is the electronic health system, which increases the overall level of pharmacy services and patient satisfaction with the help of electronic prescription service and provides other benefits as well (Minarikova and Panayiotis, 2015e). In Slovakia, there are no demographic and geographic regulation criteria for the establishment of a community pharmacy, and therefore, Slovakia can be included among countries with deregulated pharmaceutical care (Ministry of Health Slovak Republic, 2011). The presented article provides an assessment of the financial development in community pharmacies in deregulated pharmaceutical care in the horizon of six years (2009-2014), and its aim is to highlight the evolution of financial parameters which could be used in the description of community pharmacies' management. METHODS Data source The data files from 2009-2014 on the financial performance of selected community pharmacies were from the Register of Financial Statements (profit and loss statement and balance sheet) at Ministry of Finance of the Slovak Republic (Ministry of Finance of the Slovak Republic, 2015). The financial statements for the time span 2009-2011 were in scanned form (typewriter or handwritten), and the financial statements for the time span 2012-2014 were in electronic spreadsheets. The financial data was available only for the community pharmacies that were running their business in a legal form as limited liability companies (Ltd.). Selection criteria A selected group of pharmacies consisted of 194 community pharmacies and represented more than 10 percent of all the pharmacies in Slovakia. The selection criteria respected the territorial division of the Slovak Republic. There are 79 districts in Slovakia. From each district, 2 community pharmacies were selected (hence, a total of 158 pharmacies) and subsequently, the group was supplemented by community pharmacies from districts with higher populations (36 pharmacies). The selection process took into account the size of municipalities (city or village) and location (at or near health centres, shopping centres and housing estate). Valuated parameters The data file on financial performance of selected community pharmacies was evaluated on gross profit, net profit, revenues from sales of goods and services, operating expenses, total assets, inventory, short-term receivables, total receivables, financial assets, owner's equity, total liabilities, and current liabilities. Microsoft Excel was used to process the data. The outcomes of the evaluation were organised and presented in tables. RESULTS AND DISCUSSION In the assessed period 2009-2014, the valuation revealed that 25% (25th percentile) pharmacies reached gross profit from -2119 to 533 euro, next 50% (75th percentile) pharmacies reached from 34 016 to 45 606 euro, and the last 25% Hajnalka Komjathy Table 1. The characteristics of community pharmacies by gross profit, net profit, revenues from sales of goods and services, and operating expenses in the years 2009-2014 (in euro) Characteristics / Years Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile 2009 31 138 6 077 1 440 286 -248 791 -349 37 405 24 236 3 687 1 137 775 -249 954 -349 30 733 815 225 693 482 6 949 428 -4 501 341 738 1 111 373 795 808 634 541 7 123 156 0 324 406 1 111 197 2010 45 229 11 383 1 490 174 -105 815 533 45 606 2011 2012 2013 23 939 13 390 337 477 -159 160 -353 36 912 17 370 10 033 258 815 -162 447 -828 28 365 1 005 378 762 735 7 397 353 0 421 549 1 294 112 994 727 754 319 7 344 317 24 408 809 1 255 667 2014 24 473 11 047 254 877 -181 426 -892 35 484 19 483 8 143 373 673 -173 194 -2 577 27 775 1 000 871 773 027 6 997 364 0 402 216 1 232 108 989 613 751 378 6 922 814 0 404 852 1 216 923 Gross profit 24 910 20 393 11 383 3 332 1 490 174 1 000 168 -105 815 -927 603 533 -2 119 45 606 34 016 Net profit 32 843 13 204 15 231 9 579 7 877 2 553 1 088 040 1 235 623 616 017 -105 815 -3 319 209 -327 603 532 501 -2 119 41 876 37 895 25 810 Revenues from sales of goods and services 914 589 1 031 862 923 748 758 778 807 154 754 987 4 695 606 14 847 567 6 623 654 -216 -2 619 2 434 380 431 380 499 404 686 1 201 721 1 285 224 1 240 575 Operating expenses 822 197 1 018 059 874 036 652 969 745 015 695 439 4 797 196 18 162 063 6 138 078 0 0 9 232 331 039 373 119 355 594 1 105 940 1 263 736 1 179 309 (maximum) pharmacies reached from 254 887 to 1 490 174 euro per year. Since 2011, the maximum value of the gross profit was falling (from 1 490 174 euro in 2011 to 254 877 euro in 2014). Mean gross profit (from 20 393 to 45 229 euro) was above the median (from 3 332 to 13 390 euro), and that showed that more pharmacies ran their businesses with lower gross profits. From the group of community pharmacies, 25% (25th percentile) reached the net profit from - 2 577 to 532 euro, next 50% (75th percentile) pharmacies from 25 810 to 41 876 euro, and the last 25% (maximum) pharmacies up to 258 815 ­ 1 235 623 euro per year. Since 2011, the maximum net profit fell from 1 235 623 euro in 2011 to 373 673 euro in 2014. Mean (from 13 204 to 32 843 euro) was again above the median (from 3 687 to 10 033 euro) and pointed out that more pharmacies run their business with lower net profit. The assessment of revenues from sales of goods and services showed a big gap between 75th percentile (from 1 111 373 to 1 294 112 euro) and maximum (from 4 695 606 to 14 847 567 euro) per year. It means that only some pharmacies could generate high revenue from the sales of goods and services. Half of the pharmacies (50th percentile/ median) generated revenue from sales of goods and services in the range of 693 482 to 807 154 euro per year. Valuation of operating expenses reported on a big gap between 75th percentile (from 1 105 940 to 1 263 736 euro) and maximum (from 4 797 196 to 18 162 063 euro) per year. It means that some pharmacies had very high operating costs. Other pharmacies kept their operating expenses lower (50th percentile, from 634 541 to 754 319 euro) and some pharmacies operated with much lower expenses (25th percentile, from 324 406 to 408 809 euro) per year. The evaluation of total assets revealed that maximum of the valuated characteristics had an increasing trend (from 1 502 264 euro in 2009 to 4 307 081 euro in 2014). Other valuated characteristics of parameter were almost stable (25th percentile from 126 656 to 139 988 euro; 50th percentile from 233 256 to 262 247 euro; 75th percentile from 448 778 to 482 807 euro). The maximum of inventory fell slightly from 389 781 in 2009 to 316 476 euro, but in 2014, it increased up to 555 353 euro. Table 2. The characteristics of community pharmacies by total assets, inventory, short-term receivables and total receivables in the years 2009-2014 (in euro) Characteristics / Years Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile 2009 326 886 238 662 1 502 264 0 130 027 448 778 60 940 53 425 389 781 0 28 189 78 091 128 737 95 771 1 074 495 0 40 625 163 672 134 056 103 177 1 076 654 -173 50 203 166 394 2010 376 996 252 202 2 711 992 0 139 988 491 027 2011 2012 378 534 233 256 3 310 664 15 035 126 656 483 495 71 437 58 471 387 752 0 34 323 91 748 147 031 95 341 22 519 72 -11 278 42 268 172 482 151 293 98 292 2 251 972 -11 278 48 610 190 851 2013 385 069 237 126 4 158 475 2 898 134 948 482 807 70 937 60 536 316 476 0 36 332 87 961 148 060 98 005 3 083 673 -3 622 48 762 160 848 152 933 98 074 3 083 673 -3 622 49 778 163 150 2014 380 474 240 619 4 307 081 0 132 086 494 298 74 471 64 447 555 353 0 33 440 89 445 142 338 90 884 3 315 942 -8 046 42 122 161 176 146 966 96 080 3 315 942 -8 046 43 683 163 842 Total assets 395 603 262 347 3 420 231 11 099 138 793 503 447 Inventory 68 614 72 678 57 848 56 718 376 661 390 385 0 0 34 887 36 080 90 177 91 534 Short-term receivables 15 1028 169 739 97 390 121 156 1 951 133 2 362 549 -18 884 0 42 129 57 972 183 975 211 236 Total receivables 157 830 176 382 102 626 125 517 1 951 133 2 362 549 -18 884 1 148 51 081 60 032 202 709 217 327 Up to 75% (75th percentile) pharmacies kept inventory from 78 901 euro to 91 748 euro; 50% (50th percentile) from 53 425 to 64 447 euro and 25% (25th percentile) from 28 189 to 36 332 euro. The maximum of short-term receivables increased considerably from 1 074 495 euro in 2009 to 3 315 942 euro in 2014. In contrast, since 2011, all the remaining valuated characteristics were falling (75th percentile from 211 236 to 161 176 euro, 50th percentile from 121 156 euro to 90 884 euro, 25th percentile from 57 972 euro to 42 122 euro). The total receivables followed the same pattern as the shortterm receivables. This was due to the fact that total receivables were predominantly made up of short-term receivables. The maximum of total receivables rose from 1 076 654 euro in 2009 up to 3 315 942 euro in 2014, but the rest of the valuated characteristics since 2011 fell (75th percentile from 217 327 to 163 842 euro, 50th percentile from 125 517 to 96 080 euro, 25th percentile from 60 032 to 43 683 euro). The assessment of financial assets exposed that maximum of the valuated parameters had an increasing trend (from 446 232 euro in 2009 to 834 320 euro in 2014). The 25th percentile was nearly stable (from 6 863 to 9 414 euro). Higher oscillation expressed 50th percentile (from 21 387 to 30 448 euro) and the highest oscillation had 75th percentile (from 45 257 to 73 310 euro). The owners' equity expressed a remarkable evolution. The slight changes in 25th percentile that reached values from 6 031 to 8 951 euro and 50th percentile that reached values from 26 699 to 47 125 euro were in contrast with the mean (69 224 to 136 332 euro) and 75th percentile (79 299 to 172 704 euro), where we recorded a significant increase. That points to the fact that owners were showing lower interest in loans and were increasingly financing their businesses from their own resources. In the assessed period, the total liabilities showed a decreasing trend in almost all valuated characteristics (25th percentile from 90 601 in 2009 to 79 525 in 2014, 50th percentile from 174 944 euro in 2009 to 162 175 euro in 2014, 75th percentile 364 313 in 2009 to 342 953 euro in 2014). Contrary to the presented characteristics of parameter is Hajnalka Komjathy Table 3. The characteristics of community pharmacies by financial assets, owner's equity, total liabilities and current liabilities in the years 2009-2014 (in euro) Characteristics / Years Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile Mean Median Maximum Minimum 25th percentile 75th percentile 2009 54 430 28 601 446 232 -48 315 7 903 68 246 69 224 26 699 1 166 573 -320 689 6 230 79 299 259 734 174 944 1 822 953 -1 672 90 601 364 313 221 669 146 835 1 815 381 -2 713 78 205 300 807 2010 57 488 30 448 530 620 -76 788 9 414 69 279 91 840 38 398 2 132 270 -248 302 7 852 99 957 282 672 188 606 2 614 204 -3 521 104 948 363 292 239 853 165 962 2 368 508 -4 574 92 572 310 298 2011 Financial assets 48 924 21 387 653 468 -49 792 7 525 45 257 Owner's equity 85 148 47 125 2 142 819 -3 557 662 8 951 128 330 Total liabilities 313 351 198 104 5 176 998 2 337 103 856 379 350 Current liabilities 264 364 163 917 5 156 333 0 84 157 300 198 2012 51 846 21 755 694 315 -43 962 6 871 58 461 77 824 39 163 2 117 949 -4 485 266 6 362 128 558 303 687 169 578 4 518 491 1 734 88 359 364 253 292 335 138 132 9 114 421 286 70 021 290 270 2013 56 373 26 974 820 912 -32 318 6 863 66 153 118 451 42 152 2 094 620 -194 999 8 198 159 396 301 591 174 580 4 518 547 148 86 512 335 733 253 190 148 804 4 497 815 0 63 497 275 311 2014 61 771 24 409 834 320 -14 074 6 905 73 310 136 332 42 717 2 595 958 -146 592 6 031 172 704 285 896 162 175 4 335 779 -790 79 525 342 953 236 793 128 875 4 315 030 0 67 863 269 946 maximum, that rose in 2009-2011 from 1 822 953 to 5 176 998 euro and then slightly dropped to 4 335 779 euro. The current receivables expressed nearly the same proceedings as the total liabilities in case of 25th, 50th and 75th percentiles. These characteristics showed a decreasing trend (25th percentile from 78 205 to 67 863 euro, 50th percentile from 146 835 to 128 875 euro, 75th percentile from 300 807 to 269 946 euro). Only the maximum of current liabilities expressed an inclining trend in 2009-2012 from 1 815 381 to 9 114 421 euro. In the following period 2013-2014, a declining trend was recorded to 4 315 030 euro. The evaluation of financial parameters and their characteristics presents the basic information on the financial development, performance and management of selected community pharmacies in the period 2009-2014. They provide us with unique information that has never been the subject of investigation and publication of any national, private or professional association on such a large sample of community pharmacies, neither in the Slovak Republic nor in Europe. The presented data can be used for further assessment of factors (such as legislation, demographic development, health needs of population, etc.) that might have an impact on their value and direction of evolution. Unrepresentative sample of observed pharmacies could cause huge differences between pharmacies in all financial parameters. Practical findings will be required for further analysis in this field. The work assesses the areas that should be the subject of follow-up and in-depth evaluation, or that can be the basis for the proposal of additional research. The evaluation of community pharmacy operations and overall performance is nowadays very crucial as the European Union countries are more or less facing the consequences of the financial crisis, recession and serious socioeconomic and political changes. CONCLUSIONS The European community pharmacy sector is a highly regulated area with various degrees of liberalization in individual countries. Liberalization in community pharmacy usually comprises of liberalization of the establishment rules for new pharmacies, ownership and OTC medicines' sale outside the pharmacies. Liberalization in community pharmacy in Slovakia, according to the legislative changes valid from the year 2004, brought new conditions of establishment of new pharmacies without any demographic and geographic criteria. The impact of this liberalization on medicine prices or on availability of medicines is expected, but the evidence about this impact on the pharmacies market

Journal

Acta Facultatis Pharmaceuticae Universitatis Comenianaede Gruyter

Published: Dec 1, 2016

References