Scottish contract talks set to incorporate cost survey
Financial negotiations over the next stage of the community pharmacy contract in Scotland will include a new survey into the cost of providing pharmaceutical services.
In Community Pharmacy Scotland’s latest newsletter, Martin Green, CPS chairman, writes: “This last year has seen dramatic swings in category M generic pricing and the most recent retained margin spot check (on January 2007 invoices) appeared to indicate an excess in the system. I find this position difficult to accept and the negotiating team has secured a commitment from the Scottish Government for a cost enquiry to be conducted. I am confident this will demonstrate that our contractor cost base has risen significantly and that this increase is absorbing any perceived excess.”
The current funding for the contract was negotiated as a two-year package that comes to an end on 31 March. CPS says that in its ongoing negotiations on the next stage of funding, it is aiming to cover changes on both remuneration and reimbursement.
“Our starting position is that a public sector inflationary uplift is not, in itself, acceptable due to the reasons highlighted [within the newsletter],” states Mr Green. These reasons include the reduced category M prices, changes to distribution arrangements, an increasing prescription volume, the cost of training staff and an increase in regulatory burden. CPS also notes that the potential impact of the reduction in prescription charges in Scotland should be considered, and that an appropriate level for retained purchase profit must be established.
CPS says that the cost survey will take place in the near future, possibly in April. It notes that because the results will not be known for some time, it might be necessary to have an interim agreement pending the enquiry’s outcome.
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