The Pharmaceutical Journal
Vol 268 No 7196 p597-604
4 May 2002

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Department of Health (www.doh.gov.uk)

Control of entry will not apply to local pharmaceutical services contracts

Local pharmaceutical services pilot schemes will not be governed by National Health Service rules covering the control of entry into contracts or the terms of service for pharmacy contractors. However, such conditions and their effects will have to be taken into account when approving LPS pilot schemes.

The Department of Health released its long awaited guidance on LPS on 26 April. It is seeking an unspecified number of pilot schemes, thought to be around 50, with the first deadline for applications being 28 June. A second wave of applications is invited by 1 November. Further waves are expected in future years.

"The new arrangements provide an alternative legal framework for the provision of pharmaceutical services, under locally agreed contracts," the guidance says. LPS schemes will be run under contracts between primary care trusts and LPS providers, obeying regulations to be made under the Health and Social Care Act 2001.

All LPS pilot schemes must include dispensing, either to patients generally or specific groups or both. They can include other services normally provided in hospitals such as diagnostic testing and monitoring, other contractor services such as chiropody, and education or training. "It is likely that no two LPS schemes will be identical," the guidance says. The only thing prohibited under LPS is dispensing by medical or dental practitioners.

As LPS is an alternative to the current national pharmaceutical services (PhS) contract, "the terms of service for pharmacies set out in Part II of Schedule 2 to the NHS (Pharmaceutical Services) Regulations 1992 will not apply to LPS pilots," the guidance says. However, PCTs will have to consider these terms when setting criteria for LPS contracts. Rules governing what can be prescribed, prescription charges and exemptions, point of dispensing exemption checks, standards of dispensing, and the need for pharmacist supervision all still apply.

Similarly, although control of entry regulations will not apply, PCTs will still have to assess the likely effects on existing pharmaceutical and medical services before submitting a pilot for approval. "Where services provided under LPS are limited (for example to particular groups of patients or at particular times), that will, of course, be a relevant factor in deciding, for example, whether a proposed new pharmacy is necessary or desirable," the guidance explains.

One change to the draft guidance issued at the end of last year (PJ, 5/12 January, p3) is that the ban on the provision of both LPS and PhS contracts from the same premises seems to have been relaxed. This will now be permitted if it can be shown that there is no risk of providers abusing the situation.

Approval of LPS pilots will be handled in essentially the same way as the Department outlined at meetings in March (PJ, 30 March, p426). Applications approved by PCT boards will be considered by four regional panels before submission to the Secretary of State for Health. These panels will include representatives from regional offices, strategic health authorities, PCTs, community pharmacy contractors and patients.

Limited funding is available from central Government to pay for preparatory work for LPS pilots, but there is no funding for ongoing management support of the pilots.

Copies of the guidance can be obtained from the Department of Health's website. The site includes proforma application forms to be completed and submitted with any bid.

News feature, p606