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PJ Online homeThe Pharmaceutical Journal
Vol 273 No 7330 p875
18/25 December 2004

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Transitional funding agreed in Scotland

Transitional funding

Under the transitional arrangements, the majority of contractors will receive a fixed monthly payment based on what they were paid in 2003–04. Individual contractors’ payments will be determined according to which of seven categories they fall into. Most will be contractors who have held a contract since April 2003. For these contractors, each monthly payment will be:

· One-12th of the sum of dispensing fees and professional allowances paid during 2003–04

· Less 2.5 per cent to avoid a repeat of last year’s overspend on the global sum

· Plus growth money: 5.34 per cent from December 2004 and a further 3.9 per cent from 1 April 2005

Contractors will also continue to receive payments on stock orders and for model schemes, minor ailments service pilots, compliance assessment fees, out-of-pocket expenses and other locally negotiated payments. Adjustments to the transitional payments will be made if a contractor’s activity level changes significantly. Special arrangements will be put in place for new contractors who do not have a history of 2003–04 payments and for essential small pharmacies.

Transitional funding arrangements, to cover the 15 months until the new community pharmacy contract in Scotland is implemented in April 2006, were announced this week.

The aim of the transitional phase is to provide a period of stability so that contractors can prepare for the move away from a volume-based contract to a service-based model. It will also give contractors a period of consolidation so that they can make any necessary changes, such as to premises or computer systems and to train staff, before the new contract is implemented.

The financial package was unanimously agreed by the Scottish Pharmaceutical General Council’s standing committee on 10 December.

Funding to support the transitional arrangements is an increased global sum of £99.171m in 2004–05, up 6.36 per cent from the previously agreed figure of £93.235m. The global sum for 2005–06 will be increased by a further 3.9 per cent to £103.039m. On top of this, the 2.5 per cent overspend on the global sum in 2003–04 has been written off rather than clawed back. Any additional spending on stock order on cost, direct supply pilots and model schemes above the previous spend on the schemes of £2.899m will be met by the Scottish Executive Health Department in addition to the global sum.

The funding for the new contract is still being negotiated. In addition, discussions are ongoing on further funding outside the global sum to support community pharmacists in meeting increased demand resulting from GPs’ new out of hours arrangements and to allow community pharmacists to implement supplementary prescribing.

The transitional arrangements will apply to payments from December 2004 until March 2006. Details of category allocation will be sent to contractors before 14 January 2005. Further information will be provided in the SPGC’s December “Vision” newsletter to be posted to contractors next week.

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