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The Pharmaceutical Journal
Vol 271 No 7262 p195
16 August 2003

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Related websites
DoH: Consultation Document on the Arrangements for Paying Appliance Contractors (more)
National Pharmaceutical Association (www.npa.co.uk)


NPA says appliance contractors hold NHS to ransom

Appliance contractors should stop holding the National Health Service to ransom and receive the same payment for dispensing as community pharmacies rather than fund “free” services through excessive on-cost remuneration, the National Pharmaceutical Association says.

The Department of Health is currently consulting on possible changes to the way in which appliance contractors are remunerated. At present, appliance contractors receive an on-cost of up to 25 per cent (plus a dispensing fee of 2p) on items they dispense. They are not subject to a discount clawback. The NPA has made a strongly worded submission to the consultation, even though it was not invited to do so.

The NPA says that for many years appliance contractors have “enjoyed profits far higher than community pharmacies for providing what is, in effect, the same service”. NPA director of practice Colette McCreedy said: “Appliance contractors appear to have held the DoH to ransom with their sponsored stoma care nurse positions and ‘additional services’ such as home delivery, flange cutting and helplines.”

The NPA calls the additional services provided by appliance contractors and their higher levels of remuneration a “chicken or egg” situation. Appliance contractors fund up to 70 per cent of all stoma care nurse positions in the NHS. They can afford to do this because of the higher remuneration and because one of the main roles of the nurses is to ensure that appliance prescriptions are routed to the sponsor’s dispensing service, the NPA claims. The proportion of stoma appliances dispensed by appliance contractors rose from 37 per cent in 1993 to 64 per cent in 2001. “If the DoH did not reward appliance contractors so freely, it would discover that it could afford its own independent stoma care nurses,” the NPA says.

The NPA also expresses concern that the DoH consultation document makes invidious comparisons between pharmacy and appliance contractors. The NPA says that pharmacies can, and do, provide home delivery, flange cutting and face-to-face advice on appliances and on medicine-related problems, even without the funding that appliance contractors receive.

The DoH is proposing setting standards for appliance dispensing. These include home delivery within two working days, measuring and fitting at home, flange cutting, telephone helplines and supply of disposal bags and wipes. Appliance contractors meeting these standards would be remunerated at the current high level. If the standards are not met, or not required, then remuneration “should be at the same rate as for pharmacies”.

The NPA suggests that instead there should be a tiered fee-based approach to remuneration with additional services being commissioned locally as required. This would remove current incentives towards prescribing large quantities of expensive items. Any accessories required should be listed in the Drug Tariff so that they can be prescribed in the normal way. It adds that appliance contractors should be subject to discount clawback and a global sum in the same way as pharmacies.

The Pharmaceutical Services Negotiating Committee has set up a working group and will be making a formal submission to the consultation before the closing date of 31 August.

Ray Hodgkinson, director general of the British Healthcare Trades Association, which represents 90 per cent of dispensing appliance contractors, told The Journal that much of the cost of looking after stoma patients in the NHS, both pre- and post-operatively, is borne by appliance contractors. “It can be shown that this cost exceeds the remuneration received by [them],” he said. The needs of patients with stomas are different from the rest of the population that might consult a pharmacist, he added.

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