PSNC and the Department of Health (DH) assess the medicine margin achieved by pharmacy contractors and make adjustments, as necessary. DH and PSNC have agreed a reduction to generic medicine reimbursement prices (Category M) from April 2014 of £10 million per month, equivalent to £120 million in a full year. The Drug Tariff will be amended from April 2014, to reflect this change. The delivery of medicine margin will continue to be assessed, with further adjustments made, as necessary.
PSNC’s Head of Finance Mike Dent commented: ‘Whilst we have agreed this adjustment for April, it will be kept under review as further data becomes available on levels of margin being earned. Our ambition is to move to a system that offers greater consistency of margin delivery for contractors, avoiding the large cuts in reimbursement prices seen in October for many years, and we are working with DH to revise the systems for adjusting Category M prices.’