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PJ Online homeThe Pharmaceutical Journal
Vol 280 No 7492 p274-275
8 March 2008

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Letters to the Editor

Community pharmacy

Threshold could force pharmacies to close (Mr H. Gitter)

Reply from Sue Sharpe, chief executive officer, PSNC


IPF seeks emergency funding (Mr F. G. McCaul)

Threshold could force pharmacies to close

From Mr H. Gitter, MRPharmS

I could not agree more with Mark Griffith’s letter “PSNC is simply out of touch with reality” (PJ, 16 February 2008, p180). One serious aspect of the Pharmaceutical Services Negotiating Committee’s so-called negotiations, which has received relatively little press, is the implementation of the iniquitous and irrational escalating prescription items per month threshold.

The points made in Mr Griffith’s letter apply equally to low dispensing volume pharmacies (LDVPs), which face a £20,000 annual shortfall after March 2008 in borderline cases. If they are forced to close local communities will be deprived of a valued service.

The rising threshold can only be interpreted as a deliberate agenda to close several hundred smaller pharmacies.

How has this situation arisen? About two months before the ballot, PSNC chief executive Sue Sharpe said that the new contract was to fund essential services and that it was unacceptable that contractors should have to depend for essential income on primary care trust commissioning.

The new community pharmacy contract framework is not equitable and LDVPs are now being told that they must supplement the shortfall in core funding by approaching PCTs.

At a subsequent meeting involving myself, David Kent, another pharmacist, and Glenda Jackson (our MP) with the then minister of state for health, Rosie Winterton, the minister stated that the threshold concept had been suggested by the PSNC and, as the new contract had been voted in, the government assumed it to be acceptable. The PSNC claimed that it was the government that had wanted thresholds and cut-off points.

So who are we to believe? Soon after the ballot, Mrs Sharpe wrote that “attempts to discredit the new contract were regrettable”, and “those that have most to lose shout the loudest”. Is this surprising?

Mrs Sharpe claimed a 92 per cent yes vote in the ballot. Untrue. The turnout was 70 per cent, and 92 per cent of these voted positively — 64 per cent of all pharmacists. Of these, 52 per cent were multiples, national or independent.

Mrs Sharpe’s claim that there would be an equitable share-out before the ballot can only have two explanations. One is that she was trying to instil a false sense of security into pharmacists, lulling them into a “yes” vote, the other was that the PSNC actually believed that this was going to be the case.

Subsequently, David Kent and I met Mrs Sharpe, and discussed three cost-neutral funding alternatives. She promised to consider these at a forthcoming PSNC meeting. One was rejected out of hand and the other two were not considered.

And yet, in a recent spot on Radio 4’s You and yours (11 February 2008), she had the audacity to claim concern for smaller independents. Her behaviour shows the opposite to be the case.

At a subsequent meeting on the issue, the PCT stated that it had no money to supplement core funding via local pharmaceutical services or anything similar.

So here we are. April 2008 is looming and I share with many others the prospect of years of excellent service being rewarded with ruin. Is there something rotten in the state of Aylesbury?

Harry Gitter
London

 

SUE SHARPE, chief executive officer, PSNC replies:

The PSNC has agreed with the Department of Health to cap the threshold increase, in each of the first two years of the new arrangements, to 3 per cent, significantly below average prescription volume growth of about 5 per cent.

It is not correct that the threshold concept had been suggested by the PSNC and I understand the DoH official who was present at the meeting has written to Mr Gitter or Mr Kent to clarify what was said by the minister. The PSNC gave careful and full consideration to proposals put forward by Mr Gitter and Mr Kent, but it did not agree with them.

I told the You and yours interviewer that closure of pharmacies is sad for the pharmacists and also for patients who have established relationships with their pharmacist. That accurately reflects my views.


IPF seeks emergency funding

Mr F. G. McCaul, MRPharmS

As an independent pharmacy contractor, I was astonished by the unhelpful and dismissive reply to Hitesh Patel last week from Pharmaceutical Services Negotiating Committee chief executive Sue Sharpe (PJ, 1 March 2008, p242).

Independent pharmacists like Mr Patel are hitting the financial buffers in increasing numbers as a result of a clawback about which there was no warning and whose effects are indiscriminate, inequitable and unfair.

The Independent Pharmacy Federation (IPF) contends that there has been no increase in net profits in community pharmacy since the introduction of the contract in 2005. The profit to which Mrs Sharpe refers has been invested in building an infrastructure that can deliver the promises of the contract. The new contract is significantly more expensive to service than its predecessor.

Rather than attempting to justify the unjustifiable, Mrs Sharpe and the PSNC should be acknowledging that the new contract has failed to deliver stability and a fair economic return for contractors. It has equally failed to deliver the promised benefits to patients and is, therefore, not fit for purpose.

Category M appears to be based on factory gate prices not available to independents so that it primarily drives price reductions rather than reimbursing what we have had to pay for medicines.

The sum of £500m is insufficient to support the level of service being demanded of contractors, nor is the concept of retained purchase profits designed to benefit all contractors.

Over the coming weeks the IPF will be doing all it can to lobby for the interests of disadvantaged independents in this inequitable situation, which appears to be more than many of the “representative” bodies seem to be doing.

For further information and advice, readers can visit the IPF website or e-mail theipf@btinternet.com

Fin McCaul
Chairman,
Independent Pharmacy Federation

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