Guidance on Schedule of Payment changes

Following changes to the processing of pharmacy payments from 1st April 2013, both the PSNC Information Team and the NHS Prescription Services Help Desk have received calls from pharmacy contractors requesting more information. 

In order to support contractors, details are summarised below:


100% advance payments

All pharmacy contractors will now receive a 100% advance payment meaning that they will be refunded for medicines dispensed more promptly. For the June schedule, contractors received a 100% advance payment for the month of April (calculated based upon the average item value from the March bundle and volume from April) plus the outstanding 20% for the March bundle.  This means that contractors will have seen a higher than normal payment made in June (when the 100% advance was first implemented), but this will be a one-off.

Part I, Clause 5C of the Drug Tariff explains by means of this table (which we have simplified slightly here):

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*Due to the transition to the new payment system, in June 2013's payment only, contractors will receive circa 120% payment.

**The value of (-) could be a positive, negative or zero.

Health Solutions Wales has confirmed that Welsh contractors will remain with 80% advance payments for the time being. The change to 100% is currently under discussion by Community Pharmacy Wales and the Welsh Assembly.

The Pharmacy Earlier Payment Scheme (PEPS)

The Pharmacy Early Payment Scheme, operated by Citibank, is an opt-in scheme which allows contractors to receive advance funding on attractive interest terms. Only those contractors who register for the scheme and ensure their bundles are received by the NHS BSA by set dates will be able to access the early payments.

Part I, Clause 5C of the Drug Tariff explains by means of this table (which we have simplified slightly here):

*If days referred to above fall on a weekend or bank holiday, the next available working day will be applied.

Further support

To assist pharmacy contractors in understanding the new details on their Schedule of Payment (FP34), the NHS Business Services Authority have now compiled a help guide for contractors. This can be found on their website.