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PJ Online homeThe Pharmaceutical Journal
Vol 279 No 7466 p199
25 August 2007

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Organisations consulted about proposed premises fee increase

The Department of Health is consulting pharmacy organisations about the Royal Pharmaceutical Society’s proposed 56 per cent increase in premises fees.

The consultation documents contain the Society’s business case for the proposed premises annual retention fee increase from £156 to £243 (PJ, 11 August, p162).

The Society’s justification for the rise includes the increased cost of inspection and regulation and increased workload as a result of the Pharmacist and Pharmacy Technicians Order 2007. It cites the increased level of complaints received and the subsequent investigation and potential prosecution of pharmacists, superintendent pharmacists and premises owners.

The Society also mentions the investment needed to ensure that inspectors keep pace with the ever-increasing complexity of cases, particularly those referred by the NHS counter fraud service.

The Society this year aims to recover the full cost of regulatory activities relating to the registration and inspection of pharmacy premises. In previous years this has been heavily subsidised by contributions from its publications directorate and members’ retention fees, after requests to increase the premises fee have been refused by the Department of Health, it says.

Colette McCreedy, National Pharmacy Association director of practice, said: “This will be an item on the NPA board agenda for September. Our initial reaction is one of concern of the impact that this increase may have on the community pharmacy business model.”

The Pharmaceutical Society Negotiating Committee will also be discussing the proposed increase at its September meeting. Stephen Lutener, head of regulation at the PSNC, said: “For pharmacy contractors, it is part of PSNC’s negotiation of NHS funding that significant increases in regulatory burden should be reflected in future funding. As premises fees are collected under statutory provisions, we would be making a claim against the NHS for any increase in premises fees.”

The proposal is out for consultation until 9 October 2007.

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