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Pharmaceutical Services Negotiating Committee

CIP error package 1 April 2009-31 March 2011

DH has now announced a payment package to take account of prescription pricing processing errors related to the Capacity Improvement Programme for the period 1 April 2009 to 31 March 2011. Full details are in the October 2011 Drug Tariff (Part XlVB).

1. All contractors who are open on 1st October 2011 will receive a payment based on the time for which they were open during the two year reference period from 1 April 2009 to 31 March 2011. This is in recognition of the errors and any inconvenience caused by the new processing system for the period 1 April 2009 to 31 March 2011. That two year period will be divided into bands of three months and each band will be worth £187.50. A contractor will receive a payment based on the number of bands during which they were, at some point, open e.g. a contractor who was open for the entire two year period will receive a payment of £1500 while a contractor who opened for the first time at some point between 1 January and 31 March 2011 will receive a payment of £187.50.

2. Contractors who have purchased a business during this period will only be paid in respect of the payment bands when they owned the business unless they have purchased the business with liabilities and the account code has remained unchanged. Contractors who have ceased trading on or before 1st October 2011 will not receive a payment, even if they were trading for the entirety of the two year reference period.

3. This payment will be made automatically in October’s advance payment made in December 2011 and no prescription data needs to be submitted to qualify for the payment.

4. A contractor who thinks their payments from 1 April 2009 to 31 March 2011 have been significantly affected has until 31 December 2011 to ask in writing for a recheck of a month or months’ prescriptions. Further information including details of how to request check(s) are available via this link.  After this time, no further requests for rechecking of prescriptions pre 31 March 2011 will be accepted.

Recheck request form

5.  If contractors request checks then NHSBSA will select an equal number of months to check for the same account.

6.  Using the results from all the months reprocessed:

  • Where a net underpayment is revealed, the contractor will be paid the value of the underpayment;
  • Where a net overpayment is revealed, the NHSBSA will recover the value of the overpayment.
  • Where a net underpayment is revealed in excess of £750, the contractor will be paid an additional payment of £500 to recognise that they have been significantly affected by the new payment system.

7.  Following 31 December 2011, the deadline for contractors to request a recheck of their account, any contractor who has chosen not to request a recheck will receive an additional payment. This payment will be split into bands and each band  is worth £62.50. Contractors will be paid these payments  according to the number of bands during which they were open at some point during the two year reference period. This will only be payable if the contractor is still open on 1 January 2012. For example, a contractor who is open the entire two year reference period will be paid £500 while a contractor, which first opened during January 2011, will be paid £62.50. This additional payment will be paid in January’s advance payment made in March 2012.

8.  Contractors will need to decide whether to ask for rechecks and are advised to consider the following:

  • Contractors who seek a check will not recover any underpayment owed if  checks of other months reveal it to be balanced by an overpayment (See paragraph 5 above).
  • A contractor who asks for a recheck will not receive the additional payment (See paragraph 7 above) unless the results from all the months reprocessed amount to a net underpayment of £750 or over.
  • PSNC pricing audit results show that some accounts are overpaid. See details below.

Results of PSNC full bundle checks from April 2009 to March 2011 inclusive

Number of routine full bundle checks performed by PSNC

Number of bundles paid within target net cash variance of 0.2%

Number of bundles underpaid outside  target net cash variance of 0.2%

Number of bundles overpaid outside target net cash variance of 0.2%

Maximum/Minimum underpayment

% net cash variance

Maximum/minimum underpayment

Value £s

Maximum /minimum overpayment

% net cash variance

Maximum/minimum overpayment

Value £s

409

119

168

122

3.07%/0.00%

2996.61/1.99

2.10%/0.01%

2285.62/7.54

 


Frequently Asked Questions

Will LPS contract pharmacies also receive the CIP error compensation payment?

No. The prescription bundles of LPS contract pharmacies are not priced using the CIP system, as such they would not receive the compensation payment in relation to CIP errors.

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