DHSC responds to the 2019 consultation on community pharmacy drug reimbursement reform

DHSC responds to the 2019 consultation on community pharmacy drug reimbursement reform

November 17, 2021

The Department of Health and Social Care (DHSC) has published its response to the 2019 consultation on community pharmacy drug reimbursement reform. The response paves the way for DHSC to move to the second phase of the consultation with PSNC with a view to implement the reforms on the following eight proposals for:

  • Changes to the way Category A prices are set
  • Changes to how medicine margin is distributed in Category M drugs
  • Changes to how Category C prices are set for drugs with multiple suppliers
  • Inclusion of non-medicinal products in the Drug Tariff
  • Changes to the way prices of drugs in non-Part VIIIA are set
  • Changes to arrangements for reimbursement and procurement of ‘specials’
  • Changes to reimbursement of generically prescribed drugs and appliances dispensed as ‘specials’
  • Changes to the discount deduction scale

The Government will progress all proposals for detailed discussion with PSNC.

PSNC’s position

The proposals are far reaching, complex and interlinked. PSNC has been talking to the DHSC about many of these proposals for some time and the proposals also featured in the final package of Community pharmacy in 2016/17 and beyond document.  In line with the five-year deal on the Community Pharmacy Contractual Framework (CPCF), this consultation response allow progression to the 2nd phase where DHSC will consult with PSNC on the details and mechanics of each reform with a view to implement these reforms.

The proposals do not impact the agreed funding envelope and it is PSNC’s intention is to work on changes that will deliver smoother cash flow and fairer distribution of margin for contractors. However, any changes could have an impact on individual pharmacies depending on their dispensing mix.

Read PSNC’s response the consultation on community pharmacy reimbursement reforms

PSNC Director of Pharmacy Funding, Mike Dent, said:

“PSNC responded to the original consultation and has been part of the discussions around the potential ways to reform reimbursement for several years. The impact on community pharmacy contractors needs to be carefully considered at all stages, and we will be discussing this matter once again at the November PSNC meeting. As per the Department of Health and Social Care’s response, we expect to now begin more detailed work with them on the proposals.”



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