This week the Scottish community pharmacy contractor global sum was announced. The Global Sum has increased by £2.6m on the previous year. Key details of the settlement are outlined below.
- The remuneration Global Sum will be reset for 2018-19 at £180.959m, an increase of £2.6m on the previous year.
- The non-Global Sum shall roll forward at its current level set at £1.3m.
- A reduction of £10m (30%) on Pregabalin capsules in Part 7 of the Drug Tariff (generic drugs) effective from 1 June 2018.
- The sum of £20m to be mapped from Part 7 of the Drug Tariff (generic drugs) to the Global Sum in 2018-19. This will comprise of a further substantial reduction in pregabalin and a balancing figure across a small group of drugs.
- Inclusive of the re-baselined Global Sum and the £20m mapped from Part 7 of the Drug Tariff (generic drugs), the guaranteed element of the funding package will deliver £200.959m.
- Guaranteed minimum margin retained by community pharmacy contractors will be reset at £100m. Should market conditions permit, any amount earned above the guaranteed minimum margin will be shared on a 50:50 basis with NHS Boards and pharmacy contractors continuing to share risk and margin.
- Margin earned in 2017-18 and subject to 50:50 sharing arrangements will be subject to clawback provisions in 2018-19. Clawback accumulated in 2017-18 will be circa £5m. As such, the generic clawback will be applied at the rate of 1.5% effective from 1 June 2018.
- In the event of market deterioration during the financial year 2018-19, a support mechanism to ensure sufficient cash liquidity to the pharmacy network shall see the temporary suspension or adjustment to the generic clawback rate in 2018-19.
- In the event that support mechanism are invoked and market conditions recover, the generic clawback rate will be reintroduced at the rate prior to temporary suspension or adjustment. Any outstanding clawback balance at the end of the financial year (2018-19) will be carried forward to the new financial year (2019-20).
Matt Barclay, Director of Operations at Community Pharmacy Scotland (CPS) said:
“This settlement will reduce the reliance on reimbursement of the cost of medicines and continue the process of developing our contractual arrangements to reflect funding alongside appropriate service provision to the Scottish population. This principle is a mutual aim of both CPS and the Scottish Government to build a sustainable funding model to support the pharmacy network and support the aspirations of our Vision and ‘Achieving Excellence in Pharmaceutical Care’ over the coming years.
“In the short term, we will work with the department to allocate the Global Sum within 18/19. Over the next few years, we will look to continue to work collaboratively to develop services which support our vision and place community pharmacy as a key contributor within primary care.”