Understanding your FP34 Schedule of Payment
Understanding your FP34 Schedule of Payment
This section contains guidance for pharmacy contractors in England. Welsh contractors should refer to information on the Health Solutions Wales (HSW) website.
The schedule of payments is a document which provides contractors with a detailed breakdown of reimbursement for drugs and appliances provided against NHS prescriptions as well as the fees paid for dispensing these items and providing related services.
Click on the headings below to read more information:
Total of Account
This is the total amount due to the contractor for that dispensing month with regard to the total value of drugs and appliances dispensed and fees and allowances received, minus the value of the prescription charges retained by the contractor (i.e. prescription charges received minus refunds given back to patients).
Total of Drugs and Appliances
This section details the reimbursement due to contractors for the drugs and appliances which they have dispensed against prescriptions for that dispensing month.
It shows the value of items dispensed at the standard discount rate as well as the value of items dispensed which have not had discount deducted (shown as ‘zero discount’ on the schedule). The number of items which fall into these categories can be found in the ‘Prescription Data’ section of the schedule.
This section also shows the rate of discount deduction and the amount deducted from payment (calculated with reference to the total of basic prices at standard discount rate and the discount deduction scale in Part V of the Drug Tariff). It also shows a total of allowances and adjustments made to the contractor, linked to reimbursement, for example out of pocket expenses and the container allowance.
Total of Fees
This section outlines the fees and allowances earned by the pharmacy contractor.
It shows the professional fee, commonly known as the single activity fee, which is paid to the contractor for every item dispensed which attracts a fee.
It also shows the establishment payment made to the contractor and any additional fees which may have been claimed, e.g. any Medicines Use Reviews, New Medicine Services or Appliance Use Reviews the contractor may have conducted during the month.
For further information about the SAF see our Dispensing and Supply Factsheet: Understanding the Single Activity Fee
For more information on prescriptions requesting multiple flavours see our Multiple flavours factsheet
Timing of monthly payments
Timing of monthly payments
Advance for Next Month
The 100% advance is an amount paid to the contractor based on the previous dispensing month’s average item value (AIV), and the number of items declared on the submission document for the dispensing month in question with a deduction made for the number of charges taken by the contractor for that dispensing month. For example, the advance payment for April’s prescriptions would be calculated based on the number of items declared on the submission document enclosed with April’s prescriptions and the AIV for March’s prescriptions, with a deduction for the value of prescription charges retained by the pharmacy contractor as declared on the April submission document.
Recovery of Advance
Once the prescriptions have been processed and total payment calculated, a deduction is made for the advance payment made the previous month. This is shown as ‘recovery of advance’ on the Schedule.
The balance due is the amount owed to the contractor by NHS Prescription Services. It is the ‘total of account’ minus the ‘recovery of advance’.
Summary of Expensive Items
This section shows the number and value of expensive items which were dispensed during the month, which have an item value of £100 or more. These values are important as fluctuations in the number or value of expensive items dispensed can have a significant impact on the average item value in a given month, and consequently the advance paid for the following month.
When checking the itemised list for expected payments the following aspects need to be considered:
- The itemised list is in value order with the largest value item at the top of the list;
- The prices quoted are the basic price of the quantity prescribed/dispensed and do not include any additional fees or adjustments due to broken bulk claims;
- If you have dispensed an item where the combined net ingredient cost of everything that made up that item is equal to or more than £100, that combined total will appear on the itemised list. E.g. If a Fluticasone item has a reimbursement value of £60 per pack, where one pack is prescribed, this would not appear in the expensive item section. If two packs were prescribed, the item total reimbursement value would be £120 and therefore this item would appear in the section;
- A product on the list may be described as an ‘exception Handler unspecified item’ or ‘exception handler discount not deducted Item’. These will include special order products not listed in dm+d;
- With products prescribed as ‘assorted flavours’ if the value of the quantity of an individual flavour dispensed does not exceed £100 then that flavour will not appear in the list.
If a product does not appear on the itemised list as expected, this does not necessarily mean that there has been incorrect payment. In these cases further enquiries can be made via the NHS Prescription Services Helpdesk on 0300 330 1349 or by email at firstname.lastname@example.org.
Other Sections of the FP34
The charges section shows a more detailed breakdown of how many charges were deducted from the payment made to the contractor. It shows the number of charges and the rate of prescription charge, as well as the value of FP57 refunds, to provide the final amount to be deducted from payment by NHS Prescription Services.
This section provides statistics linked to the prescriptions submitted to NHS Prescription Services for pricing for the dispensing month detailed in the Schedule. It shows the total number of forms received, and the number of items dispensed for which a fee will be paid to the contractor, including standard discount rate and zero discount rate items.
It also shows the average item value (AIV) for the dispensing month, which is used to calculate the advance payment for the following month, and it details the number of Medicines Use Reviews and New Medicine Services conducted by the contractor and the number of dispensing staff hours declared, the number of FP57 forms (charges refunds) and the number of Appliance Use Reviews carried out as declared on the FP34c submission form.
Items Transferred Between Exempt and Chargeable Groups
This section shows the number of items submitted to NHS Prescription Services for pricing which have been switched between the exempt and chargeable groups. To try and minimise loss from prescription switching, contractors are advised to monitor this closely, for example to ensure that staff are following standard operating procedures and ensuring that exemption declarations are completed as required.
EPS Release 2 and the Schedule of Payments
Changes have been made to the Schedule of Payments to support the implementation of EPS Release 2. In future the Schedule will provide information on the number of prescription forms and items received electronically. This information will appear in the ‘Prescription Data’ section which is normally on page 2 of the Schedule. These fields are only visible on the Schedule where some electronic prescriptions have been received by NHS Prescription Services electronically.
The numbers provided will relate to the physical receipt of the paper and electronic forms and items prior to the calculation of any additional fees. This figure will exclude any paper tokens for non-payment received by NHS Prescription Services for audit purposes.