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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7397 p467
22 April 2006

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Scottish contract 2006


Financial deal to support new contract in Scotland

Community pharmacists in Scotland will this week hear the details of the financial deal that will support their new contract.

The provisional settlement negotiated by the Scottish Pharmaceutical General Council and the Scottish Executive Health Department is set out in an NHS circular, published as The Journal went to press. The next stage will be for the SPGC to seek the endorsement of contractors.

It is a two-part deal: the transfer of £30m from reimbursement to remuneration and an increase in the global sum. The new global sum — which is being quoted inclusive of the transferred £30m — is £141.067m. Putting the transferred sum aside, this represents an increase of 7.8 per cent from the 2005–06 global sum. The £30m comes from amendments to part 7 of the Scottish Drug Tariff which have already been announced (PJ, 1 April, p372).

In recognition of the phased implementation of the new contract, payment to contractors in 2006–07 will involve a transitional reimbursement payment (TRP). The TRP will be paid from the £30m transferred from reimbursement to remuneration and will be calculated on a quarterly basis. From April 2007, the £30m will be merged into the global sum.

The new contract effectively begins in July when the minor ailment service becomes operational. So for the interim period from April to June, the TRP will be calculated for each contractor as 13.25 per cent of the aggregate gross ingredient cost paid for dispensed items in part 7 of the Drug Tariff. This effectively neutralises the 13.25 per cent clawback.

For the period July to September, the TRP will be reduced and separate payments will be made for the minor ailment service and the public health service (the other core service within the new contract starting this summer). The basic payments for these two core services will be flat-rate for all contractors except for part-time essential small pharmacies (which will receive an adjusted payment). For the minor ailment service the basic payment is £325.83 per month and for the public health service it is £718.33 per month. However, both can be increased (see Panel below). An additional monthly sum of £100 will be paid for infrastructure support. The reduced TRP figure will be announced later in the year and will be adjusted in order to reach the total £30m transferred figure.

Banded payments

From July, funding for the minor ailment service is to be banded according to the number of patients registered on the last date of the month.

Patients registered

Monthly payment

1–250

£325.83

251–500

£488.58

501–750

£651.42

> 750

Payment as for previous band plus an additional 67p per month for each person registered above 750 patients

In the two areas that already operate the minor ailment service – NHS Tayside and NHS Ayr & Arran — contractors will continue to receive existing payment for the service from April to June.

Tiered payments are also in place for the public health service. From October, contractors can receive an additional £314.30 per month if the pharmacy participates in a higher level of service involving window displays (PJ, 15 April, p431).

The effect of the new arrangements is that the old transitional payment (in place until 31 March) will be adjusted to reflect the annual growth in prescription volume (between 1 December 2004 and 30 November 2005) plus a general uplift of 5 per cent.

Additional funding changes will apply to the pharmaceutical care model schemes. The palliative care model scheme will become a local service with funding allocated to NHS boards for the scheme. The model schemes for the frail elderly and enduring mental illness will be funded by a flat rate of £98 per month paid to all contractors.

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