PCA(P)(2023)26 - Pharmaceutical Services Amendments to Drug Tariff in Respect of Remuneration Arrangement and Part 7 Clawback

Published: 04/08/23

Purpose

This circular sets out to community pharmacy contractors and NHS Boards the details of the community pharmacy funding arrangement 2023/24

Background 

Circular PCA(P)(2022) 8 advised on amendments to the remuneration and reimbursement arrangements listed in Part 7 of the Drug Tariff (generics) along with the Part 7 discount clawback rate for the financial year 2022/23.

A settlement has now been reached with Community Pharmacy Scotland on a one year community pharmacy funding package for the financial year 2023/24. The settlement has been reached as a result of extensive negotiations and will deliver the largest uplift ever agreed for the community pharmacy network.

Detail 

This circular now advises of the headline elements of the community pharmacy funding package for 2023/24:

• A - The remuneration Global Sum will be reset for 2023/24 at £219.533m, an increase of 6% on the previous year and sets the baseline figure for 2024/25.

• B - The non-Global Sum shall roll forward at its current level set at £1.3m.

• C - The continued mapping of funding from Part 7 (generic) Drug Tariff as guaranteed income will remain at £80 million for the financial year. Mapped guaranteed income is not subject to an annual uplift.

 Taking these points A and C above, the total guaranteed funding to be delivered in 2023/24 is £299.533 million

The current level of Guaranteed Minimum Income has increased by £15.95m (19%) to £100m. The delivery of the Guaranteed Minimum Income will be closely monitored monthly throughout the year and further action to support contractor cashflow will be considered if appropriate. Arrangements on margin sharing will be provided in the coming weeks. This will be determined by the outputs from the Scottish Government community pharmacy regular pricing enquiry reporting.

 Community pharmacy contactors shall receive a one off payment from an agreed pot of £1.667m.  Payment will be made on April Dispensing Pool activity and made with the June paid August payment schedule. This is to recognise there was no drug tariff adjustment for April 2023.

Community Pharmacy Scotland has agreed to move to one Dispensing Pool from 1 October 2023, combining previous Dispensing Pool and Care Home Payments.  This will coincide with and recognise dispensing activity data available from April 2023.

The remaining uplift to the global sum for this year will be allocated to the Dispensing Pool. Further details on the breakdown of global sum funding are set out below.

Consultation

Community Pharmacy Scotland has been consulted on the Drug Tariff amendments and the contents of this circular.