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PJ Online homeThe Pharmaceutical Journal
Vol 277 No 7418 p326
16 September 2006

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Dressings price cuts imposed

Prices paid to pharmacy contractors in England and Wales by the Department of Health for a range of dressings and blood glucose test strips are to be cut from 1 October.

After two years of consultations, the reimbursement price of standard and compression bandages will fall by 8 per cent to bring the cost in primary care in line with secondary care. Higher price cuts have been imposed on some other products, ranging from 40.5 per cent for some dressings packs to 78 per cent for a pack of standard gauze swabs.

The reimbursement price of some blood glucose test strips is also to fall — by 12 per cent — on the same date. Only those with a total cost to primary care of less than £15,000 last year are unaffected. There will be a further 3 per cent cut on 1 November if manufacturers stop providing free test meters, educational materials and telephone helplines for patients.

Independent Pharmacists’ Federation member Graham Phillips said that the price cut would reduce the ability of pharmacies to generate purchase profit, which is a key element of their total remuneration under the NHS contract. It would hit independent pharmacies harder than the multiples. “This is why we want to move to remuneration based on cognitive services,” he said. “It underlines the fact that we need to move towards a clinically based contract like they have in Scotland.”

A Pharmaceutical Services Negotiating Committee spokesman said: “We hope and expect that prices to pharmacies will drop and have been in contact with the Department of Health. … Purchase profit income measurement will not be affected.”

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