The Pharmaceutical Journal
Vol 270 No 7245 p533
19 April 2003

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Pharmaceutical Services Negotiating Committee (www.psnc.org.uk)

Tests of necessity and desirability remain valid for new contracts

The Pharmaceutical Services Negotiating Committee does not want to see any change to the tests of necessity or desirability that applications for new National Health Service pharmacy contracts have to pass.

But it is to put forward proposals for changes to the application and appeal system that the Office of Fair Trading says costs the NHS £10m a year.

After the PSNC's April meeting, PSNC chief executive Sue Sharpe said: "£10m is a gross over-estimate, but there are some things that need to be changed."

Mrs Sharpe said that almost all applications decisions go to appeal. "All the incentives are to appeal, even if only as a delaying tactic," she said. "We will expect the Government's balanced package of measures to address this so that there are sensible constraints on incentives. The current system creates an unmeritorious demand on public funds. It will not necessarily be the case that financial penalties to unsuccessful appellants will only benefit the larger players."

The PSNC is also to suggest that pharmacy regulations be changed so that PCTs do not have to wait for pharmacy applications if they believe there is an unmet need for extra services. It wants PCTs to be able to determine unmet needs in consultation with local pharmaceutical committees and to require LPCs to help with ensuring that identified needs are met. Under the PSNC's proposals, existing contractors would be given preference where extra services are necessary, but PCTs would be allowed to seek tenders or applicants for new contracts if existing contractors did not respond.

Mrs Sharpe declined to comment on whether or not the Government was likely to resist preference being given to existing contractors on the ground that this would not expand competition in the pharmacy market.