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Vol 273 No 7323 p631
30 October 2004

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PSNC: New Contract (more)
DoH: The new contractual framework for community pharmacy (more)
Contract 2005 (more)


Funding details for new contract in England revealed

Details of how the funding for the new community pharmacy contract in England is to be distributed were announced this week. If contractors vote to accept the new contract, it will be implemented in April 2005.

Funding details

Payment for essential services will include a fee of 90p for each dispensed item plus special fees and allowances. Contractors will receive an annual establishment payment that replaces the current professional allowance and a new fee called a practice payment that adds 24.2p to the item fee. There are special arrangements for pharmacies that dispense low volumes of prescriptions.

For advanced services, contractors will receive £23 for each medicines use review carried out. Total funding to introduce new IT systems in pharmacies comes to £58m but the amount each pharmacy will receive has yet to be finalised.

PSNC has published a contract book

PSNC has published a contract book

The distribution details are outlined in the Panel (right) and are covered more fully in a News feature on pp637–8.

Speaking at a meeting of the All Party Pharmacy Group on 25 October, Barry Andrews, chairman of the Pharmaceutical Services Negotiating Committee, said that the new contract offered an immense opportunity for pharmacists. “We believe that we have arrived at a win-win situation. It offers fair return for contractors and excellent return for the NHS,” he said. The contract gives pharmacists both professional satisfaction and financial security, he added.

Health minister Rosie Winterton said: “The way will be clear for community pharmacy to take up its rightful place as a full partner in the provision of NHS primary care services. There are very real opportunities for PCTs and pharmacies to grasp here. Pharmacy service providers can make a real contribution to achieving local performance targets.” She urged the NHS to forge new relations with community pharmacy. “The Department will work with the NHS to provide support and training in the months ahead. But the time to act is now. The new framework offers opportunities as never before,” she said.

Chris Town, NHS Confederation pharmacy lead, added: “Primary care trusts should be assessing their local needs now so that they are fully able to exploit these opportunities in order to maximise the benefits to patients.”

The announcement was widely welcomed by pharmacy organisations. The National Pharmaceutical Association said that it believes the new contract is fundamental to taking forward the profession. Ash Soni, NPA chairman, said: “The new contract provides a platform from which to enhance pharmacy services and to integrate community pharmacy into the health service.”

On behalf of the Company Chemists’ Association, chairman Digby Emson said: “This is something that the profession has been striving towards for many years and it is the beginning of a new chapter in the development of community pharmacy.”

Nicholas Wood, president of the Royal Pharmaceutical Society, commented: “We are pleased to see that the ambitions for the pharmacy profession outlined in ‘A vision for pharmacy’ have progressed in this way.”

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