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Vol 277 No 7432 p760
23/30 December 2006

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Adjustments to reimbursement/remuneration switch still needed

Brian Stewart-Coxon/Dreamstime.com

Money transfer

Money transfer from reimbursement to remuneration might be delayed

Contractors in Scotland have been told that the transfer of money from reimbursement to remuneration, scheduled to take place in this financial year, might not be completed. Instead, further adjustments could be needed early in the next financial year.

The original intention was to transfer £30m from reimbursement to remuneration, with that money funding the new minor ailment service, public health service and infrastructure support. Payments for these services began as planned but, according to an NHS circular, the amount transferred out of reimbursement (as a result of price changes in the April and July Drug Tariffs) fell short of the target figure.

Prices set for October’s Drug Tariff mean that more money will be taken out of reimbursement and could mean that the £30m is saved by the end of the year.

Elspeth Weir, head of community pharmacy policy development, Scottish Pharmaceutical General Council, told The Journal that the balancing effect of October prices was a reason to be optimistic. However, she added: “Once figures for October dispensing volumes are available and the January Drug Tariff prices have been set, we will be reviewing the figures to see if any adjustment to clawback is needed.” An announcement is expected in March.

The NHS circular states: “The full £30m transfer from reimbursement to remuneration may not be completed during 2006–07.” It tells NHS boards that there may be a requirement to carry forward a deficit or credit into 2007–08, and that any savings arising from October prices should not be deployed until a final review has been made.

The circular reiterates that from next year, the £30m will be permanently moved into remuneration and included within the global sum.

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