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PJ Online homeThe Pharmaceutical Journal
Vol 272 No 7300 p629
22 May 2004

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October implementation of new pharmacy contract seems unlikely

October implementation of the new community pharmacy contract in England has been effectively blocked by the Department of Health. Unless the DoH dramatically changes its position in negotiations over funding this week then it is likely that implementation will be delayed.

The DoH made its opening position on funding the new contract on 7 May, a position that the Pharmaceutical Services Negotiating Committee has rejected as “wholly unrealistic”. Sue Sharpe, chief executive, PSNC, said that the result of this is that the negotiating process looks set to be lengthy. “We do not believe that the DoH could ever have thought that this offer was anywhere near a credible position,” she commented. She was not prepared to divulge the details of the offer.

The PSNC and DoH were due to meet this week, after The Journal went to press. “By the end of this week, we will know whether we are still looking at an October contract or if the DoH is walking away from it,” said Mrs Sharpe. “If we are not near agreement by then, I simply do not see how we can get the discussions on distribution completed, hold the roadshows and get the ballot out before everyone goes on holiday in the summer.” She added: “We are extremely concerned that delays by the DoH mean that we are no longer working to an October timetable.”

Asked why the opening offer was so low and whether or not the new contract was still scheduled for October, a DoH spokesman said: “We want to negotiate a deal which is fair for pharmacists, patients, taxpayers and fair for the NHS. We want to make best use of the skills of community pharmacists and their staff in delivering modern NHS services for patients.” He added: “We are still negotiating with the PSNC and it is therefore not appropriate to comment further at this stage, but we want to implement the new contractual framework as soon as is practicable.”

A delay in implementation of the new contract could bring further complications since announcements on control of entry and generics are expected to be made alongside the new contract. “It is possible that new control of entry regulations could be introduced separately from the new contract and officials clearly wanted to get moving on generics,” commented Mrs Sharpe. However, she suggested that contractors will not be able to weather significant changes to income from generics unless changes to income are made elsewhere.

She added that contractors who were currently refitting their premises in preparation for the new contract were not wasting their money. “The future of community pharmacy services has to be in developing capacity and providing one-to-one advice and support for patients,” Mrs Sharpe said. “I am still optimistic about the new contract; my concern is with the timescale,” she said.

The National Pharmaceutical Association said that it was disappointed and frustrated to hear that the DoH had made an unrealistic opening offer. Ash Soni, NPA chairman, commented: “It would appear that the Government is walking away from its stated commitment. This is a totally unacceptable state of affairs.”

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