§ Mr.Hunterasked the Secretary of State for Social Services if he will list the instances since 1974 when the Government, in accordance with the remuneration agreement with pharmacists, has underpaid to compensate for previous over-payment.
§ Mr.Kenneth ClarkeWe have never adjusted the remuneration of pharmacists. However pharmacists' remuneration is on a cost-plus basis and in calculating the reimbursement of costs for any given year, account is taken of actual payments made in prior years.
In calculating costs, retail pharmacists are reimbursed the wholesale cost of drugs and appliances less an agreed graduated discount. This discount scale is adjusted from 400W time to time to reflect increases and decreases in the amounts of discount which have been enjoyed by retail pharmacists.
It has not been necessary in the period since 1974 to recover overpayments as such.
§ Mr. Hunterasked the Secretary of State for Social Services (1) what measures he proposes to take to avoid the build-up in future of large over- or under-payments in the remuneration of pharmacists;
(2) whether he has now started negotiations with the pharmaceutical services negotiating committee for a new contract for remunerating community pharmacists.
§ Mr.Kenneth ClarkeOne of the Government's major aims in the forthcoming negotiations on the new contract will be to reduce the risk of excessive build-up of over- and under-payments due to pharmacists. We shall be making proposals intended to secure that objective. I am ready for negotiations to begin as soon as possible. I understand that the Pharmaceutical Services Negotiating Committee will be seeking endorsement to its proposals for a new contract at a conference of local pharmaceutical committees on June 10. I expect formal negotiations to begin shortly after that date.