The Pharmaceutical Journal
Vol 273 No 7315 p303
4 September 2004

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One month wait for full details of contract in England

Community pharmacists in England will have to wait another month to find out exactly how they will fare financially under the new contract.

Last week’s announcement that a £1.766bn deal has been agreed to fund the new contract (PJ, 28 August, p277) will not mean much to pharmacists until it is determined how the sum will be distributed.

This week, the Pharmaceutical Services Negotiating Committee confirmed that it is developing distribution models that will be discussed at the next PSNC meeting, to be held at the end of September. Provided that an agreement is reached, an announcement on future distribution of funding will follow this meeting.
The total sum is more than double the old global sum in England (about £800m). However, it is presumed that some of the new money will cover future losses in profits on drugs purchasing. This is discussed further in this week’s News feature (see p308).

Meanwhile in Wales, pharmacists are expected to hear about funding for their new pharmacy contract within the next few weeks. The Welsh Assembly Government said last week that it was pleased to note that an agreement had been reached between the PSNC and the Department of Health on funding in England. A statement from the Assembly sent to Community Pharmacy Wales said: “As you are well aware, the negotiations have been conducted on an England and Wales basis, and we are now studying the details of the agreement and will be making a statement in due course.” However, it also warned that from experience with other contract negotiations, a measured approach would be taken in Wales.

Peter Haydn Jones, chief executive of CPW, told The Journal that CPW is continuing to discuss the position with the Welsh Assembly Government. “We are expecting an announcement in two to three weeks,” he commented.
In Scotland, an outline funding model was announced last month (PJ, 14 August, p211) although the precise level of financial support has yet to be agreed. However, it is expected that the new contract will be implemented on a transitional basis.

“While considerable work still needs to be done, it is hoped that over the next few months a clearer understanding of what the transitional arrangements might look like will be developed,” said Frank Owens, chairman of the Scottish Pharmaceutical General Council.

“Successful delivery of the new contract services will require the provision of a number of pieces of supporting infrastructure. These take time to put in place, hence the need to consider transitional arrangements. We are already in the process of discussing these arrangements with the Scottish Executive, although we anticipate it will be some months yet before we are in a position to advise contractors further,” he said.