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PJ Online homeThe Pharmaceutical Journal
Vol 279 No 7478 p550
17 November 2007

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PSNC investigates impact on pharmacy contract of PCT brand prescribing policies

Figures are being compiled by the Pharmaceutical Services Negotiating Committee to try to find out how local primary care trust prescribing policies are distorting the nationally negotiated pharmacy contract.

Some PCTs and practice-based commissioning (PBC) clusters are recommending that GPs prescribe specific brands where these are cheaper than the Drug Tariff Category M generic equivalents in order to achieve local reductions in prescribing costs.

Kamlesh Upadhyaya, a community pharmacist from Barnet, north London, said: “Pharmacies who serve PCTs or PBC clusters that have branded generics policies will lose out disproportionately in relation to other pharmacies because payments are negotiated globally.”

Mr Upadhyaya, who sits on Barnet PCT’s professional executive committee, added that this could cause a huge drop in income for local pharmacies that would take a long time to recover because the Department of Health cannot know which clusters are switching prescribing in this way.

“The 97 pharmacies in Barnet will get less income than the average pharmacy across the country,” he said. “It follows that this practice could lead to some heavy dispensing pharmacies [becoming] non-viable.”

Sudden switches that are made to save money can also lead to problems with the availability of medicines because manufacturers might not be able to cope with sudden surges in local demand or pharmacies might not have what is prescribed in stock.

“Just the other day, I had to ask a patient to come back the next day to start a course of Keflex because the doctor did not prescribe generic cephalexin,” Mr Upadhyaya said.

A Barnet PCT spokesman said that one PBC cluster was piloting work on commissioning prescribing and had seen that the use of specific brands could generate substantial savings on the primary care budget.

“PBC clusters have a clear remit to generate savings that will then be reinvested in services that will bring care closer to patients’ homes and this is part of that remit,” he said.

Lindsay McClure, head of information services at the PSNC, explained that local policies of this nature caused variations in income for pharmacies that resulted in an unequal geographical distribution of nationally negotiated funding, although they did not threaten the overall purchase profit guarantee.

Miss McClure said: “This is an issue in approximately 15 PCT areas. Different PCTs have put in place different local policies. In some cases, prescribing of certain branded generic medicines is encouraged in others it is prescribing of off-patent brands.”

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