Contractors set to lose around 30 pc profit
Pharmacies with a high prescription turnover are likely to be most
affected |
Contractors in England and Wales will, on average, lose around 30 per cent in cash profit as a result of the recalibration of the Drug Tariff, an analysis by Numark of 350 of its members suggests.
The loss will depend on prescription mix, varying from 11 per cent to
45 per cent, the analysis indicates. The pharmacies that will experience
the greatest impact will be those that have high prescription turnovers
on lines such as simvastatin, amlodipine, pravastatin and ramipril, all
now Category M medicines.
Category M was created under the new contract funding arrangements, which
reduced the reimbursement prices for generic medicines by £300m
to fund parts of the new community pharmacy contract. The Pharmaceutical
Services Negotiating Committee said last week that the Department of
Health is monitoring manufacturer and wholesaler prices for Category
M medicines and intends to make changes to Category M prices quarterly.
The PSNC will be examining the impact of these changes to ensure that
only £300m is removed.
The PSNC also announced last week that the DoH has agreed that for April,
May and June, amlodipine will be considered a Category A item. The committee
warned, however, that the decision to reclassify amlodipine temporarily
should not be considered a precedent for similar cases where prices increase
during a quarter. |
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