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Vol 275 No 7373 p538
29 October 2005

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Appliance reimbursement system to change

The system of payments for medical appliances in England that has remained unchanged for nearly 20 years is being reviewed by the Department of Health.

The proposed changes, which went out for consultation (PDF 210K) this week, are an attempt to bring an end to the current practice where appliance contractors are paid more than pharmacists to dispense the same items.

The DoH is keen to introduce a code of practice that would include issues such as product marketing aimed directly at patients and the sponsorship of specialist nurses.

It also wants to stop the practice of what is known as “agency agreements” between pharmacists and appliance contractors. Under these arrangements, pharmacists give the appliance prescription to the appliance contractor who passes it on to the Prescription Pricing Authority with both sharing the subsequent payment.

The proposals cover both the short and long term.

In the short term the DoH proposes reducing the average reimbursement to contractors by up to 15 per cent to reflect market prices more accurately and remunerating appliance contractors on a similar basis to pharmacy contractors.

The DoH has come up with a series of options that include setting reimbursement prices by tender, amending the current Drug Tariff, and paying all pharmacies a dispensing fee but offering an additional payment if extra services for patients are provided.

Pharmaceutical Services Negotiating Committee head of finance, Mike Dent, said: “We warmly welcome the proposal to create a level playing field for pharmacy contractors and appliance contractors by creating a common system of reimbursement and remuneration for the supply of items in Part IX of the Drug Tariff.

“ PSNC has been pressing the Government on this issue for a number of years. The consultation does raise a number of concerns though, in particular, the proposal to adjust the reimbursement price of items in Part IX of the Drug Tariff. This is something that we will have to analyse and consider carefully in relation to the new contract funding arrangements.”

The consultation closes on 23 January 2006.

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