PCA(P)(2021)05 - Amendments to the Drug Tariff

Published: 08/04/24

Circular PCA(P)(2021)05 sets out to community pharmacy contractors and NHS Boards the details of the community pharmacy funding arrangement 2021-22.

This forms part of the 3-year settlement introduced in April 2020.

Please Note: Please note that claims on Appendix A and B will be processed faster when submitted electronically.

Background

Circular PC(P)(2020) 15 advised on amendments to the reimbursement arrangements and amendments to reimbursement prices listed in Part 7 of the Drug Tariff (generics) along with the Part 7 discount clawback rate for the financial year 2020-21. In line with the 3 year settlement, the Part 7 discount clawback rate will remain at zero.

Detail

This circular advises of the key elements of the community pharmacy funding package for 2021-22, agreed as part of the multiyear agreement 2020-21 – 2022-23, delivering community pharmacy contractors and Health Boards continued stability and predictability.

I. The remuneration Global Sum will be subject to a fixed percentage uplift of 2.5% in each of the three years. The remuneration Global Sum in 2021/22 will be reset at £197.977 million.

II. The non-Global Sum will remain at £1.3 million and will continue to fund the infrastructure to support the joint Scottish Government and CPS strategy of increasing the number of independent prescriber workforce within the community pharmacy setting.

III. NHS Pharmacy First Scotland service funding will increase by £2.5 million in 2021-22, bringing to the total investment of new monies for the service to £7.5m million. This takes the total funding pot for the service to £27.5 million in 2021/22.

IV. The continued mapping of funding from Part 7 (generic) Drug Tariff as guaranteed income will remain at £65 million for the financial year 2021-22. Mapped guaranteed income is not subject to an annual uplift.

V. Taking point I – IV, the total guaranteed funding to be delivered in 2020/21 is £265.477 million.

VI. The current level of the guaranteed minimum income level and the agreed ‘buffer’ will be increased in line with the 3 year settlement. Therefore guaranteed minimum income will be reset at £82 million and sharing of generated income above £92 million will be on a 50:50 basis between NHS Boards and community pharmacy owners.

VII. Any generated income above the agreed sharing point that is due to Boards will be delivered through the agreed mechanism. In addition any generated income above the sharing point due to Boards will be matched as mapped guaranteed income. Both will be delivered by a reduction to Part 7 (generic) Drug Tariff.

VIII. The amount due to Boards will be determined by the outputs from the Scottish Government community pharmacy regular pricing enquiry reporting.

IX. In line with the 3 year settlement Scottish Government shall determine if any Drug Tariff reductions are practical for the purposes of mapping to guaranteed income. Taking into consideration the current market conditions and any impacts on the Scottish Drug Tariff, no additional monies will be mapped in the financial year 2021-22.