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NEL LPC Profit and loss five year predictor
The profit/loss five year predictor can be downloaded at the bottom of this page
Contract settlement and funding for 2019/2020 to 2023/24:
PSNC’s views can be found here.
Changes for 2019/20 to 2023/24
- ‘contract sum’, will remain unchanged at £2.592 billion for 2019/20, and for subsequent years until the end of 2023/24. ¡A new NHS Community Pharmacist Consultation Service (CPCS) with a fee of £14 per consultation. will be introduced nationally as an Advanced service in October 2019.
- A new Pharmacy Quality Scheme will be introduced (previously the Quality Payments Scheme) under which pharmacies can earn additional payments for meeting quality criteria. Funding for the scheme will continue at £75m a year. Some elements of the former Quality Payments Scheme will become Terms of Service requirements under the Community Pharmacy Contract Framework (CPCF) from April 2020.
- Pharmacies will receive monthly Transitional payments in the second half of 2019/20 and in 2020/21 to meet costs associated with changes such as integration into Primary Care Networks (PCNs), preparation for Serious Shortage Protocols (SSPs) and implementation of the Falsified Medicines Directive (FMD).
- MURs & Establishment Payments will be phased out by 2020/21. Replaced by clinical pharmacists working in PCNs start to undertake Structured Medication Reviews.
- The Pharmacy Access Scheme (PhAS) remains with funding of £24m a year.
Funding for 2019/20 to 2023/24
- The £2.592bn contract sum is distributed to pharmacies through a combination of fees and retained margin.
- The proportion of funding delivered via fees and retained margin remains unchanged in 2019/20 at £1.792bn for fees and £800m in retained margin.
- Category M prices are recalibrated retrospectively and will increase by £15m a month from August 2019.
- CPCS will commence in October 2019. Funding of £4m is allocated for 2019/20. A fee of £14 per consultation. A supplement of £900 will be available to pharmacies signing up to provide the service by 1st December 2019, or £600 for those signing up by 15th January 2020.
- Transitional fees will be paid from October 2019. The level of fees will be included in the October 2019 Drug Tariff.
|CP Funding distribution: April 2018 to March 2021|
|Pharmacy Quality Scheme||75||2.9||75||2.9||75||2.9|
|Pharmacy Access Scheme||24||0.93||24||0.93||24||0.93|
|Hep C Testing Scheme||0||0||2||0.077||2||0.077|
|Transition payment & new Clinical services||0||0||69||2.66||223||8.6|
|MUR+ Establishment Payment 10.07% of the gross income dwindles to 0.93% in 2 years|
£1315 + £167 = £1482m
Devaluation £167/1882 = 11.27%
£167 + £94 = £261 m
£15,000 + £11,200 = £26,200
£26,200 / £14 = 1871(or 6.2/day) intervention per year
Time to find in each single opening day:
6.2 – 1.3 /day = 5 int/day = 70 additional mins/day
- Medicines Use Reviews (MURs),
- the New Medicine Service (NMS),
- Appliance Use Reviews (AURs),
- Stoma Appliance Customisation (SAC), and
- (CPCS) the NHS Urgent Medicine Supply Advanced Service (NUMSAS)
- Funding for the Flu Vaccination Service comes from NHS England’s Section 7A public health budget.
Pharmacy Quality Scheme (PQS):
- community pharmacies that are meeting certain Gateway and Quality criteria.
- each pharmacy could achieve a maximum of 100 points, with the minimum value of each being £64 – meaning a maximum of £6,400/year
2A-2F Fees: This refers to Part IIIA of the Drug Tariff, where a number of professional fees are described. These are payments to cover the dispensing of:
- unlicensed medicines,
- certain appliances,
- oral liquid methadone,
- Schedule 2 and 3 Controlled Drugs, and
- expensive items.
What about VAT?
- Smoking cessation
- AF service
- What are the rules about VAT and how will they affect the pharmacy fiances?
- Will they be coming from the Global sum or from outside the global sum?
Questions relating to dispensing
- What is the prediction for dispensing volume over the next year, and 10 years?
- What is the impact of the prescribing mix (i.e. generics, branded generics and branded products)?
- At what point is dispensing breaking even?
- Loss of £15,000/year. How to recoup?
- Impact of technology? Robotics?
- Impact of mergers
Reduction in prescription volume
- reduction in prescribeable OTC medicines
- de-prescribing initiative and reducing unnecessary poly-pharmacy
- rethinking of medicines prescribing
- technology: prevention and early detection agenda
- Remission of e.g diabetes and other long term conditions and
- early detection and lifestyle change.
- social prescribing
- Reduction in antibiotic prescriptions
Prediction: In 2025 – compared to 2018- there would be a prescription volume decrease of 40%.
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