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Vol 276 No 7392 p315
18 March 2006

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News feature

Pharmacy services hit by NHS cash crisis

The overall financial problems experienced by the NHS are hindering the provision of new pharmacy services. Debbie Andalo writes


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NHS cash crisis

Community pharmacists are claiming that services they want to provide under the new contract are being put on hold because of the £900m NHS deficit expected at the end of this financial year. Pharmacists in hospitals are also seeing a freeze on filling vacant posts as their trust accountants try to balance the books by the end of March.

Community pharmacists’ leaders in Tower Hamlets in the east of London this week complain that plans to offer emergency hormonal contraception (EHC) under the community pharmacy contract have been halted because of lack of money. In neighbouring Havering pharmacists have been told to stop offering smoking cessation services because of lack of money, the local pharmaceutical committee says.

Details of the cuts emerged as all primary care trusts in London have been told that their budgets for next year will be top sliced by 3 per cent to bring the NHS budget in the capital back into the black.

But it is not only London pharmacists who are feeling the squeeze on spending. The picture is similar in the Home Counties. Steven Brill, chairman of Hertfordshire LPC claims his PCT in St Albans and Harpenden, facing a £3.7m deficit, has refused his request to provide a stop smoking clinic as an enhanced service under the new contract. Other community pharmacists have been reluctant to come forward with proposals for enhanced services because they are pessimistic about being given the go-ahead, he said.

Although St Albans and Harpenden PCT denies that any enhanced services are being put on ice, pharmacists’ reluctance to come forward with enhanced service proposals and the confusion over whether there is money to fund them, is likely to damage the expansion of pharmacy services under the new contract — whatever the true financial picture.

The package of pay reforms being brought in under Agenda for Change, the new GP and community pharmacy contracts and a new contract for hospital consultants are being attributed to the huge debt now hanging over hospital and primary care trusts. It is a situation which, according to the president of the Guild of Healthcare Pharmacists, Tony West, was entirely predictable.

He said: “All these changes cost money and at the same time the drugs bill is going up. There is more money coming into the NHS but it’s going straight into salaries. There are cost pressures in the system and the Government will need to review how the money is being spent. The bottom line is that there is more money going into the NHS but the question is whether it’s getting best value for the money which it is putting in.”

Mr West said the issue was not that Agenda for Change and the new contracts were too generous: “People deserve the extra money created under Agenda for Change — it’s whether or not the funds have been managed to extract the benefits that there should be from that. The private sector would have brought in extra targets and goals for that extra cash.”

Frozen hospital posts

Vacant posts in hospital pharmacies have been frozen as trusts strive to balance their books, he revealed. “With more work and less staff it becomes very difficult,” he admitted.

Hospital pharmacists also feel in financial limbo because the Department of Health has yet to announce details of the national tariff for next year which is at the heart of the Government’s payment-by-results initiative which affects trusts’ budgets, Mr West said. He added: “The Department a couple of weeks ago withheld details of the national tariff so until we know what the value of the tariff is, it is not possible to say what our financial situation will be next year.”

Pharmacists working in the community this week appeared to have a better picture of the financial situation they will face in the next 12 months. The financial outlook in London was especially clear as the NHS London transition team, put in by the DoH to oversee proposals to restructure strategic health authorities in the capital, announced at the beginning of this month that all PCT budgets for 2006–07 would be cut by 3 per cent to bring the NHS budgets back into the black. The principle underpinning this decision was that a pan-London reserve was needed to bale out those trusts struggling financially.

John Bacon, transitional lead for London said in a statement: “The NHS in London as a whole must balance its books and the work to ensure that this happens across London starts now.” He said what was needed was “rigorous” financial management over the next 12 months and “greater efficiencies in the delivery of health services” without compromising services or standards.

But despite his hopes that services would not be compromised it became clear this week that some primary care initiatives being adopted by pharmacists were being halted because of the financial squeeze. North East London LPC secretary Hemant Patel said that community pharmacists in Havering have already been given notice to stop providing smoking cessation services because of the pct deficit.

Mr Patel said: “Smoking cessation is a national target for the health service and this decision by the pct has been demoralising for community pharmacists just when they were expecting that their input into health services was going to increase it has been taken away. It has been immensely frustrating. It is also a crazy decision at a time when the Government has announced that it wants to ban smoking in public places from next year.”

Tower Hamlets PCT has also told him that plans for pharmacists to offer emergency hormonal contraception as an enhanced service under the new contract were being shelved because of lack of money. Mr Patel said: “We have spent a long time trying to negotiate a suitable rate for pharmacists to provide this service only to be told now that it will not be commissioning it from us after all. Again, it is disappointing and demoralising, especially for those who have stuck their necks out to be innovators. These decisions are putting the government’s public health agenda in jeopardy.”

No one was available for comment from the PCT.

Short-term issue?

The NHS Confederation, which represents 90 per cent of PCTs and other trusts, is hopeful that any cuts or postponements in pharmacy services will be short lived. Its deputy director of policy Jo Webber said trusts at the moment were looking at what are their “core requirements” rather than service development because of lack of funds. She said: “I think this is a short-term issue. That is what the [DoH] is saying. It’s about getting control back in the short term.”

She was confident that innovation in primary care, especially the role that community pharmacists can play in delivering the government’s white paper on outside of hospital care, was not going to be stifled. She said: “Community pharmacists can play a big part [in the bill] and that agenda is still where the Government sees the NHS going long term.”

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