The return of customary cash discounts on prescription medicines has been approved politically, but legally it still depends on promulgation and entry into force of the regulation. Germany’s Bundesrat approved the regulation on 10 July 2026. As at 14 August 2026, the consolidated German Medicines Price Ordinance does not yet contain the new cash-discount clause. Pharmacies should therefore prepare their procurement models now without treating the announced rule as law prematurely.
What is set to change in law
The approved regulation is intended to permit genuine, customary cash discounts when a pharmacy pays before the agreed due date. Discounts granted merely for payment on the contractual due date remain excluded. The regulation states that the change enters into force on the day after promulgation. Pharmacies will gain additional competition over terms, but will also need to assess offers more consistently.
It remains unclear which models will prevail over the long term. One point is already clear: an attractive cash-discount rate alone says little about the actual profitability of a procurement model for an individual pharmacy.
The problem: percentages are not operating profit
Many comparisons focus on a small number of visible figures: prescription discount, cash discount, bonus or OTC terms. These figures matter, but they do not represent total purchasing performance.
A nominal advantage of three per cent may deliver less value than an offer of 2.5 per cent if fees, surcharges, payment terms, margin compensation or delivery reliability are less favourable. The product mix also matters: terms for high-priced medicines, standard prescription products, OTC products and direct purchasing have different effects on the real euro return.
Total return is what counts
The key question is therefore not: What cash discount do I receive? It is: What total economic return does the pharmacy generate from the complete procurement model?
A robust assessment should include at least:
- prescription discounts and genuine prescription cash discounts,
- margin compensation and rules for high-priced medicines,
- OTC and direct-purchasing terms,
- fees, surcharges and other deductions,
- payment terms and the actual liquidity requirement,
- fill rate, shortages and procurement workload,
- the realised euro return by supplier and product category.
Only a combined view makes suppliers and contract models genuinely comparable.
Liquidity becomes a strategic competitive advantage
Genuine cash discounts reward payment before the due date. Liquidity therefore becomes a direct procurement lever. Pharmacies with resilient liquidity planning can use payment models flexibly and generate additional returns. Earlier payment also ties up capital that may be needed elsewhere or may create financing costs.
The right decision follows from the relationship between the cash-discount return, payment date, financing costs and available working capital. Not every available discount is automatically worthwhile.
Why flexibility matters more than commitment right now
The market is still finding its new equilibrium. Terms are being adjusted, competitors are reacting and new contract variants are emerging. Long commitments made solely for a temporarily high individual discount can therefore reduce strategic freedom.
During this phase, tiger.PHARMA recommends that pharmacies:
- reassess wholesale contracts regularly,
- actively compare several procurement routes,
- avoid premature long-term commitments,
- include delivery reliability and process costs in their calculations,
- measure the actual euro return by supplier transparently.
Conclusion: prescription cash discounts will be one component, not the strategy
The planned return of genuine prescription cash discounts creates new opportunities for pharmacies, but it does not replace sound purchasing management. In the new market for terms, data quality, liquidity management, contract knowledge and strategic procurement matter more than any single percentage.
tiger.PHARMA helps pharmacies identify not the highest advertised discount, but the commercially best procurement model – transparent in euros, flexible in the market and aligned with the pharmacy's individual liquidity and product mix.