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Vol 280 No 7494 p334
22 March 2008

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Letters to the Editor

Community pharmacy

Time for a moratorium on removal of protected payments

From Mr D. R. Kent, MRPharmS

Yet again Sue Sharpe (chief executive of the Pharmaceutical Services Negotiating Committee) in her reply to Harry Gitter (PJ, 8 March 2008, p274) fails to tell the whole truth. I know Mrs Sharpe is well aware that the Department of Health lays the blame for setting the level of the lower threshold for the funding of low volume dispensing pharmacies (LDVPs) at the feet of the PSNC.

The DoH together with Mrs Sharpe’s unnamed DoH official, who I assume is Peter Dunlevy (community pharmacy policy manager, DoH), have consistently stated that the DoH is open to discussions with the PSNC on renegotiation of the current remuneration formula and had agreed with the PSNC that they should come back to the DoH, some time in 2005, for a mid-term review of that formula.

That review never took place because the PSNC never requested it; and in private conversation, Peter Dunlevy told me that he regretted that the PSNC had not done so.

A letter from Rosie Winterton, the then health minister, to Glenda Jackson MP, dated 19 March 2005, confirms that it is the PSNC and not the DoH with which the LDVPs should be negotiating. This is confirmed by a piece in Chemist & Druggist (C&D, 19 March 2005, p6).

Further confirmation is in a letter from the DoH (14 July 2006), which states: “… it remains for the PSNC to bring the matter of the Annual Establishment Payment to the negotiating table.” How much more evidence is needed by the PSNC for it to accept that it is the body at fault in not reviewing the situation?

How can there be a formula in which one prescription item is worth around £22,500? Which genius within the PSNC came up with the idea that there should be no sliding scale? And one has to doubt the intellectual abilities of others who accepted it.

Crocodile tears from Mrs Sharpe and PSNC members cut no ice with those whose life’s work is about to be rewarded, on 1 April 2008, by a further reduction of £18,000 (in addition to the £4,500 they are already disadvantaged by) together with significantly reduced, if there is any, equity in their business.

In the absence of superannuation for community pharmacists (another PSNC triumph of negotiation) this equity formed part of their retirement package.

Correction (22 March 2008)
In this letter, the percentage mentioned in the fourth to last paragraph should have been 0.28 per cent and not 0.0028 per cent.

There can be little doubt that the greed of the bigger players in not advising the PSNC to leave in place the small amount needed to maintain the livelihood of the smaller players is disgraceful. We are talking about £5.5m from a global sum of £1,960m (0.28 per cent).

Are the bigger players so hard up that they will seal the demise of their less fortunate colleagues for such a paltry sum, most of which they will lose to taxation and the deplorable Category M attack on pharmacy profits (a further PSNC triumph of negotiation)?

One must seriously consider to whom the PSNC is responsible and for whom it is acting.

If the PSNC has one iota of compassion it will immediately put in place a moratorium on the impending removal of protected payments while this matter is debated in the open.

David Kent
Chief Executive Officer
Camden and Islington Local Pharmaceutical Committee
London

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