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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7401 p584
20 May 2006

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Contract funding negotiations delayed because of health minister's resignation

Negotiations for funding of the community pharmacy contract for 2006–07 in England and Wales have been delayed following the resignation of health minister Jane Kennedy, the Pharmaceutical Services Negotiating Committee revealed at its May committee meeting.

“The new health minister with responsibility for pharmacy, Andy Burnham MP, will need to get up to speed on the new contract and its funding before a conclusion is reached,” it said. Funding negotiations started towards the end of the first year of the contract and are continuing. They include application of the funding formula and calculation of purchase profit income.

It is likely that the final proposed funding package will be put to the minister at the same time as a decision needs to be made on the results of a second invoice inquiry of 42 independent contractors conducted by the PSNC in February. The Department of Health will use the results of the invoice inquiry to deliver the £500m guaranteed funding in purchase profits and, consequently, adjustments will be made to reimbursement, said the PSNC.

VAT HM Revenue & Customs has determined that contractors will be liable to pay VAT on specified services, such as signposting and waste collection (PJ, 8 April, p407), from the date on which they started providing the services.

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