PCA(P)(2023)44 - Guaranteed Minimum Income Adjustment Payment

Published: 20/12/23

This circular advises community pharmacy contractors and Health Boards of a corrective payment in order to deliver contractual requirements for the financial year 2023/24.

This payment adjustment is required to regulate the delivery of the guaranteed minimum income from the procurement of medicines.

Detail

Following the monitoring of monthly generic margins delivered through the procurement of medicines, set against a monthly target share of the agreed annual guaranteed minimum income of £100m, an under delivery for quarter 1 and quarter 2 has been reported.

An exceptional payment from a pool of £1.785m will be made at the earliest opportunity. The payment to each eligible contractor is calculated as a proportionate share of the latest months dispensing pool activity. This will be paid as ‘GMinimum_Balance’ adjustment.

Eligibility for the dispensing payment is that a contractor must be on the pharmaceutical list on 1 April 2023 or a new contractor who joins the pharmaceutical list after 1 April 2023. Where a contractor acquires an established pharmacy after the 1 April 2023, the new contractor will inherit the payment of the original contractor.