From Ms M. Greene
SIR,—I am pleased to have the opportunity to clarify the misconceptions
surrounding the Pharmacy Partners service raised in Mr Gush’s letter (PJ,
September 30, p484). As Pharmacy
Partners offers a completely new and innovative service — comprising both
business and financial services — it is understandable that misunderstandings
will arise.
Firstly, the basis of our service is the acceleration of repayment of the cash
pharmacists have tied up in the National Health Service payment cycle. This
both releases the backlog of cash caught up in the payment cycle (£71,000
if NHS turnover is £500,000) and provides ongoing daily cash release so
that the pharmacist no longer needs to find cash to fund the increases in the
amount owed by the NHS as turnover grows. By offering pharmacists the opportunity
to convert to a cash business they can operate in a similar way to other retailers
to maximise profit margins and maintain control of their businesses.
In addition, we provide unique NHS payment reconciliation and business analysis
reports, thereby helping pharmacists to monitor trends in their business, save
on accounting costs, improve decision making and thereby increase profits.
The cash cost of our discount fee, which is typically 2 per cent of payments
made depending on NHS volume, should be comfortably exceeded by the returns
generated on the initial cash release, by eliminating the need to fund increases
in the amount owed by the NHS and through better use of information.
We do not supply loans. Therefore comparative calculations made on that basis
are misleading. There are no repayment requirements, no minimum term, no need
to pledge business and personal assets to secure repayment, no buying obligations,
no exit penalties, and the service can be terminated at any time with 30 days
notice. Upon withdrawal from the service a pharmacist reverts to his or her
previous situation without any penalty.
The Pharmacy Partners
service has nothing to do with affecting the level of reimbursement. It does
however have everything to do with accelerating that reimbursement. The timing
of the NHS’s reimbursement is set by statute, and Pharmacy Partners service,
rather like a merchant credit card, accelerates that reimbursement so that the
pharmacist receives the funds in 48 hours.
At Pharmacy Partners we ask anyone evaluating our proposition to study all aspects
of the service, and where appropriate to take independent advice, so as to ensure
that our service meets the requirements of their particular circumstances.
We are very encouraged by the number and diversity of pharmacists who have evaluated
our proposition and concluded that it offers them worthwhile benefits.
Mary Greene
Sales and Marketing Director,
Pharmacy Partners