I noticed that the Prime Minister has recently announced a scheme that will enable pharmacy contractors to receive earlier payment for prescriptions dispensed...so far so good, because it currently takes us 2 months to be completely paid for our dispensing (not a good state of affairs for cash flow!).
The problem is that this new scheme, which will enable contractors to receive advance payments for prescriptions dispensed on day 7 or 8 of the month following that in which the items were dispensed - i.e. a few days after submission of their prescription bundle, will be subject to a charge!
For example, for prescriptions dispensed in January, contractors - for a fee - would be able to access the NHS Business Services Authority (NHS BSA) advance payment on the 7th or 8th of February. The full and final payment would still be received on April 1st.
The aims of the scheme are to help contractors better manage cash flow and to enable them to settle their accounts more quickly - which is to be welcomed, but surely now is the time to bring pharmacy contractors in line with other commercial transactions and pay in 30 days, not 60 and then we wouldn't need this scheme!
The problem is that this new scheme, which will enable contractors to receive advance payments for prescriptions dispensed on day 7 or 8 of the month following that in which the items were dispensed - i.e. a few days after submission of their prescription bundle, will be subject to a charge!
For example, for prescriptions dispensed in January, contractors - for a fee - would be able to access the NHS Business Services Authority (NHS BSA) advance payment on the 7th or 8th of February. The full and final payment would still be received on April 1st.
The aims of the scheme are to help contractors better manage cash flow and to enable them to settle their accounts more quickly - which is to be welcomed, but surely now is the time to bring pharmacy contractors in line with other commercial transactions and pay in 30 days, not 60 and then we wouldn't need this scheme!
| Indeed Claire Ward from the IPF has expressed my thoughts perfectly "some time ago the government ran a campaign to encourage businesses to pay creditors within 30 days - even governments and local authorities were encouraged to do so. Isn't it time that they practiced what they preach?" |  |
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