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. |