Prescribing

Statistical Publication Notice

24 June 2008

Quarterly update of reimbursement and remuneration paid to dispensing contractors, up to March 2008

INTRODUCTION

KEY POINTS

• Payments to community pharmacies for 2007/08, in respect of various fees and allowances for dispensing prescriptions and providing pharmaceutical services, have been subject to a general uplift of 2%.  Full details of the revised arrangements are given in circular PCA(P)(2007)10.
• Compared to financial year 2006/07, the 2007/08 financial year gross total expenditure for all dispensing contractors increased by 2% (£22M) to £1.07 Billion. 
  • 83% (£883M) of the gross total is attributed to the actual cost of drugs, which after discount, fell by £2M.  This decrease is due to:
    • changes in the generic drug discount rate, which was set at 0% from April 06-June 06, and then rose to 13.25%
    • changes to the generic drug pricing system
  • 17% (£184M) of the gross total is attributed to the remuneration of services, which increased by £24M.  As well as a substantial increase to fee rates in 2007/08, various services were introduced mid 2006/07, inflating the difference between the two years.

INTERPRETATION

• When making comparisons from 2007/2008 to 2006/2007 you should refer to circular PCA(P)(2007)10  for more details.  You should also be aware of the following:
  • The generic discount was set at 0% from April to June 2006 instead of the standard 13.25%.
  • Unscheduled care was introduced in April 2006 and April, May and June 2006 fees were paid in June 2006 payments.
  • Infrastructure payments were introduced in July 2006.  The acute medical service infrastructure payments (AMS) were introduced in March 2008 and from this point onwards infrastructure payments would reflect this.
  • Public health service payments (PHS) were introduced in July 2006.  The PHS Tier 2 payment was implemented in July 2007 and from this point onwards payments included both Tier 1 and Tier 2 (prior to this point the payments would only reflect Tier 1). 
  • Minor ailment service payments (MAS) were introduced from July 2006.  From April 2007 onwards, MAS payments have been subject to an uplift of approximately 2%.  However please note that the uplift which should have been paid in April, is reflected in the May payments, May uplift was paid in June and the payments for both June and July were paid in July.  From July onwards, the 2% uplift is included in the MAS capitation payment.
  • From November 2006, there was a revised list of zero discounted drugs.
• Standard dispensing fees, installment fees and professional allowance fees are only paid to community pharmacies not receiving transitional payments.  These fees show an increase of 54% from 2006/07 to 2007/08 because there is an increase in contractors not in the transitional payment scheme.

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MAIN CONTACTS:

Caroline Murray
Information Analyst
0141 282 2118
Healthcare Information Group (Prescribing Team)
caroline.murray@isd.csa.scot.nhs.uk

Joanne Collins
Senior Information Analyst
0131 275 6760
Healthcare Information Group (Prescribing Team)
joanne.collins@isd.csa.scot.nhs.uk

Margaret Conway
Principal Information Analyst
0141 282 2265
Healthcare Information Group (Prescribing Team)
Margaret.Conway@isd.csa.scot.nhs.uk

GLOSSARY:

Generic drug discount rate is the total discount applied to those items which are in part 7 of the Scottish Drug Tariff.

PRE-RELEASE ACCESS TO THIS PUBLICATION WAS GIVEN TO:

HISTORY OF THIS PUBLICATION:

Last Published: 25 March 2008
Next Due: 30 September 2008
Data Avaliable Since: January 2002

Main contact: Caroline Murray

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