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PJ Online homeThe Pharmaceutical Journal
Vol 272 No 7287 p205
21 February 2004

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DoH imposes 2003–04 remuneration increase

The Department of Health has imposed a remuneration increase for 2003–04 of 3.225 per cent on community pharmacy contractors in England and Wales. It has also been announced this week that the new contract for community pharmacists is to be delayed.

The imposition comes after the Pharmaceutical Services Negotiating Committee rejected the Department’s final offer. A DoH spokesman said this week: “For contractors in England and Wales to receive any increase in time this year, the only option was imposition.” He added: “This year’s increase is above current inflation levels. We believe it fairly and appropriately rewards pharmacies for the NHS services they provide in 2003–04.”

Sue Sharpe, chief executive, PSNC, commented: “The imposition is highly unsatisfactory; that is why we refused to accept the offer in the first place.” She added that considerably more would be needed to fund current services adequately.

The result is that all fees and allowances for NHS dispensing will remain unchanged, except for the professional allowance and essential small pharmacy scheme (ESPS) payments. The basic dispensing fee remains at 94.6p per prescription item.

For March 2004 only, the professional allowance will be £1,000 at 1,100 prescriptions, rising to £2,645 at 1,600 prescriptions. From April 2004, onwards the professional allowance will be £775 at 1,100 prescriptions rising to £1,500 at 1,600 prescriptions per month.

In total, the global sum rises by 3.225 per cent from £835.6m to £862.5m.

The DoH spokesman said that in addition to the remuneration increase, £1m would be granted to support pharmacy technician and assistant training. A futher £200,000 compensation has been agreed for the increase in premises retention fees.

New contract delayed Implementation of a new pharmacy contract will not begin in April. The Pharmaceutical Services Negotiating Committee is now hopeful that implementation will begin in October. At a meeting on 11 February, PSNC members were told that there would be a series of roadshows for pharmacy contractors in the spring. After this, all contractors will be asked to vote on the final package of services and associated remuneration.

Mrs Sharpe commented that the decision to delay was mutual between the PSNC and the Department. “We believe it is much more important to get the new contract right than to rush into it,” she said. A reason for the delay is the cost inquiry which has taken longer than was thought to achieve acceptably robust results.

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