A struggling technology business backed by the Pharmacy Guild of Australia has reaped millions of dollars in government grants intended for pharmacists, fuelling concerns that the lobby group is beset by conflicts of interest as it heads into battle over the next round of funding for the industry.

Fred IT, which was 50 per cent-owned by the pharmacy guild when the federal government’s $15.6 billion Community Pharmacy Agreement was struck in 2010, was one of two private companies to share in a $9.7 million windfall after key funding for pharmacies was later redirected.

The handout was not approved under the original agreement and was made despite the guild previously agreeing that the funding in question — $75.5m to offset pharmacists’ costs of switching to processing prescriptions electronically — be made only to pharmacies.

It also came as Fred IT, which had recently launched a new Prescription Exchange Service for the transfer of electronic prescriptions, known as e-scripts, which was billed as a breakthrough in the fight against prescription forgery, was struggling financially.

For more details, go to: http://www.theaustralian.com.au/news/pharmacy-lobby-in-conflict-row-over-it-firms-windfall/story-e6frg6n6-1227319665110