§ Mr. Carter-Jonesasked the Secretary of State for Social Services (1) whether the dispensing doctors' contract to provide National Health Service dispensing services is a cost plus contract; and what profit margin is allowed to doctors under their National Health dispensing contract;
556W(2) what was the date of the last inquiry into doctors' dispensing costs; what is the anticipated date of the next inquiry; and if he will make a statement.
§ Mr. Kenneth ClarkeThe independent Doctors' and Dentists' Review Body does not make explicit what level of profit is due to the profession and reflected in the fees and allowances it recommends should be paid to general medical practitioners to remunerate them for the general medical services they provide, including NHS dispensing. The costs of drugs and appliances dispensed are directly reimbursed and are not intended to include any element for profit. An inquiry is being conducted to establish whether discount on the purchase of drugs and appliances is obtained by dispensing doctors, and, if so, how much. However, because of the way in which general medical practitioners are remunerated, any profits which are made as a result of such discounts will have been gained at the expense of other doctors and not at the expense of the Exchequer.