Scottish Community Pharmacy settlement for 2017/18 announced

THE community pharmacy global Sum remains unchanged at £178.359 million for 2017/18 after the conclusion of what Community Pharmacy Scotland (CPS) has called “challenging discussions” with the Scottish Government.

“The conversations were conducted in a professional and collaborative manner with the aim being to deliver a settlement that could be signed off which recognised the complex issues and financial pressures currently facing contractors and the NHS. The Scottish Government remain committed to maintaining a vibrant, stable and predictable pharmacy network throughout Scotland,” said CPS Chief Executive Officer, Professor Harry McQuillan.

Other details of the settlement are as follows:

  • Tariff reduction of 5.77% (£20 million) over 12 months from June 1 – this reduction is taken from the published list of lines as per Circular PCA (P)(2017)5. This drop in the drug tariff reflects the amount owed to Health Boards from the 2016/17 agreement and will be monitored to deliver the overall savings.
  • Generic clawback to zero (from 3%) from June 1.
  • The non-global sum will remain unchanged from its current level of £1.3 million.
  • The guaranteed minimum margin is increased to £110 million.
  • Margin sharing arrangements — instigation of a 100% of £10 million band above £110 million to £120 million for the pharmacy network if available in the system through 17/18 (this is monitored on a quarterly basis through discount spot checks).
    • If above £120 million a 50:50 share will occur.
  • £2 million non-recurring to be invested into network as per 16/17 agreement for 17/18 •
  • Agreement to monitor the impact of pregabalin from August 1 upon patent expiry.

“The 2017-18 round of negotiations presented all involved parties with a number of real challenges and as such we will enter into negotiations for 18/19 acknowledging that the development of pharmacy services and the contribution to Primary Care transformation will be channelled alongside financial considerations,” said Professor McQuillan.

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