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Pharmaceutical Services Negotiating Committee

Current Funding Settlement Details

An interim funding settlement of £2,486m has been put in place for the period 2012/13.

In previous years it has been possible to agree total funding in time for this to be delivered through adjustments made from the October Drug Tariff onwards. But as the 2012/13 funding agreement will take into account the results of the Cost of Service Inquiry (COSI), it has not been possible to complete the negotiations by the same time this year.

As the negotiations are not likely to be concluded in the immediate future, the Department of Health is making interim funding changes at this stage which will again be delivered by implementing adjustments to the Drug Tariff from October. Work on finalising the settlement for 2012/13 is ongoing, drawing heavily on the CoSI. This work could have a significant financial impact for contractors and is too important to rush.

The changes also take into account the provisional results of the 2011/12 margins survey, which shows that pharmacies’ retained purchase margin exceeded the sum allowed by £235 million in the last financial year.

The arrangements include:

  • A reduction in Category M prices of £72.5 million per quarter from October 2012;
  • A £10m CIP package for pharmacy contractors, to recognise the impact of prescription payment inaccuracies.

Key points from October 2012

  • Top level Practice Payment reduced to 52.8p per item (See Part VIA of the Drug Tariff for further details);
  • Establishment Payment and Practice Payment thresholds have increased by 3%;
  • No change to the dispensing fee, additional fees, repeat dispensing payment, or EPS Allowances.

Explanation of the 2012/13 interim funding arrangements


Funding Frequently Asked Questions

For FAQs please visit the Funding Frequently Asked Questions section.


Summary of Previous Years Funding Settlements

For details of previous years settlements please floow the appropriate link:

2011/12

2010/11

2009/10

2008/09

2007/08 (under development)

2006/07 (under development)

2005/06 (under development)


Indicative Income Tables

Indicative Income Tables (based on April 2013 arrangements) (PDF)

Indicative Income Tables (based on October 2012 arrangements) (PDF)

Indicative Income Tables (based on April 2012 arrangements) (PDF) (Updated Sep 2012)

Indicative Income Tables (based on October 2011 arrangements) (PDF)

Indicative Income Tables (based on April 2011 arrangements) (PDF)

Indicative Income Tables (based on October 2010 arrangements) (PDF)

Indicative Income Tables (based on April 2010 arrangements) (PDF) (Updated to incorporate 2010/11 funding settlement)

Indicative Income Tables (based on October 2009 arrangements) (PDF)

Indicative Income Tables (based on April 2009 arrangements) (PDF)

Indicative Income Tables (based on October 2008 arrangements) (PDF)

Indicative Income Tables (based on January 2008 arrangements) (PDF)

Indicative Income Tables (based on October 2007 arrangements) (PDF)

NB: As the funding arrangements change mid-year, these Indicative Income Tables illustrate Indicative Income at a particular point in the year.


Useful Links

Structure of Pharmacy Funding

Fees and Allowances

Margins Survey

 

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