HC Deb 26 June 1985 vol 81 cc425-7W
Mrs. Renée Short

asked the Secretary of State for Social Services if he will make a statement on the detailed terms of the new contract between his Department and the Pharmaceutical Service Negotiating Committee; what are the various cut-off points in terms of numbers of prescriptions issued which will be used to determine pharmacists' remuneration; upon what criteria the cut-off points were determined; and what assessment he has made of the effects of the new contract upon the level of remuneration of pharmacists within each band.

Chemists remuneration: structure of fees
Option 12: graduated dispensing fee of:—
120 51 62
change points:— 15900 27000
(1325 pa) (2250 pa)

Plus 52 fiat rate oncost
Prescription Numbers (Annual) Estabs. in band Mid point of band (RX/month) Monthly receipts under 85/86 fee structure Monthly receipts under new option Monthly difference
Pounds/pharm. Pence/RX Pounds Pence/RX Pounds/pharm. Pence/RX
0–2399 24 100 394.47 394.47 142.44 142.44 -252.03 -252.03
2400–3599 35 250 611.18 244.47 356.10 142.44 -255.08 -102.03
3600–4799 50 350 755.65 215.90 498.54 142.44 -257.11 -73.46
4800–5999 48 450 898.45 199.66 640.98 142.44 -257.47 -57.22
6000–7199 59 550 1026.16 186.57 783.42 142.44 -242.74 -44.13
7200–8399 79 650 1152.76 177.35 925.86 142.44 -226.90 -34.91
8400–9599 129 750 1280.47 170.73 1068.30 142.44 -212.17 -28.29
9600–10799 125 850 1405.21 165.32 1210.74 142.44 -194.47 -22.88
10800–11999 164 950 1519.89 159.89 1353.18 142.44 -166.71 -17.55
12000–12199 226 1050 1622.28 154.50 1495.62 142.44 -126.66 -12.06
13200–14399 204 1150 1718.71 149.45 1638.06 142.44 -88.65 -7.01
14400–14999 118 1225 1796.25 146.63 1744.89 142.44 -51.36 -4.19
15000–15899 121 1288 1856.58 144.14 1834.63 142.44 -21.95 -1.70
15900–16799 236 1363 1909.53 140.10 1915.24 140.52 5.71 0.42
16800–19799 723 1525 2032.94 133.31 2034.21 133.39 1.27 0.08
19800–22799 743 1775 2219.47 125.04 2217.81 124.95 -1.66 -0.09
22800–26999 1035 2075 2405.52 115.93 2438.13 117.50 32.61 1.57
27000–29999 710 2375 2672.94 112.54 2672.20 112.51 -0.74 -0.03
30000–33599 710 2650 2894.28 109.22 2904.41 109.60 10.13 0.38
33600–37199 662 2950 3138.70 106.40 3157.73 107.04 19.03 0.65
37200–40799 608 3250 3396.13 104.50 3411.05 104.96 14.92 0.46
40000–44399 456 3550 3660.13 103.10 3664.37 103.22 4.24 0.12

Mr. Kenneth Clarke

The new contract is a lengthy document containing much detail. The full text was placed in the Library on 17 June. The main features areA system of annual negotiations and annual cost inquiries to a fixed timetable and a fixed settlement date of 1 April each year. This will prevent as far as practicable the accrual of large sums of arrears, and the need for massive retrospective adjustment. This will reduce the number of disputes between Government and profession that the old arrangements had an in-built tendency to cause. A system to ensure that the National Health Service obtains and pays for only those pharmaceutical services which the NHS and its patients need. Family Practitioner Committees will decide whether the needs of patients justify the expenditure on a new NHS contract, and will refuse an application if this is not the case. The only judgment will be one of patient need. This arrangement will ensure that there is a reasonable but not excessive supply of pharmacies with NHS contracts. An increased level of financial support by means of minimum income guarantee to essential small pharmacies to ensure continuing access to NHS services in thinly populated, mainly rural areas. Greater encouragement to cost effective and efficient practice through changes in the remuneration structure. For two years, a system of payments to small pharmacies which wish to relinquish the NHS contract, helping pharmacists who find themselves locked into unattractive contracts to withdraw. A modified system of cost collection which will produce some savings which will be shared equally between Government and the profession, producing some funds to help implement development in the pharmacist's role. A sound basis for developing that future role following discussion of the recommendations of the Nuffield inquiry.

All the details, including the cut-off points to be used in determining remuneration, emerged from a long period of negotiation with the committee which represents all contractors. The effect of the proposals on average remuneration within various bands is set out in the table.

Prescription Numbers (Annual) Estabs. in band Mid point of band (RX/month) Monthly receipts under 85/86 fee structure Monthly receipts under new option Monthly difference
Pounds/pharm. Pence/RX Pounds Pence/RX Pounds/pharm. Pence/RX
44400–47999 385 3850 3916.64 101.73 3917.69 101.76 1.05 0.03
48000–51599 368 4150 4159.22 100.22 4171.01 100.51 11.79 0.28
51600–55199 :88 4450 4392.10 98.70 4424.33 99.42 32.23 0.72
55200–59999 307 4800 4646.38 96.80 4719.87 98.33 73.49 1.53
60000 285 5350 4980.96 94.88 5099.85 97.14 118.89 2.26
66000–71999 198 5750 5430.84 94.45 5522.05 96.04 91.21 1.59
72000–83999 265 6500 6106.60 93.95 6155.35 94.70 48.75 0.75
84000–101900 234 7750 7232.87 93.33 7210.85 93.04 -22.02 -0.28
102000+ 169 10550 9755.72 92.47 9575.17 98.76 -188.55 -1.71