Drug Tariff update April 2020 – Establishment Payment and Transitional Payment

Drug Tariff update April 2020 – Establishment Payment and Transitional Payment

March 31, 2020

From 1 April 2020 changes to the payment bandings for the Transitional Payment are being made. Two additional bands have been created by splitting the previous band 1 (0 – 2,500 items) and band 3 (5,001 – 19,167 items).

The payment levels for pharmacies above 2,500 items per month are increased over 2019/20 levels.

The Transitional Payment recognises the work to invest in and improve dispensing efficiency, including the training of staff in anticipation of legislative change, as well as the transformation needed in community pharmacy to deliver the vision set out in the five-year agreement. It is expected that the Transitional Payment will reduce over the course of the year if new services come on stream and funding is allocated to the related service fees.

From 1 April 2020 pharmacy contractors who dispense 101 prescriptions items or more in any month will receive a Transitional Payment as set out in the table below:

Number of items per month from 1 April 2020 Monthly Transitional Payment from 1 April 2020
0 – 100 £0
101 – 2,500 £100
2,501 – 5,000 £1,168
5,001 – 12,500 £1,475
12,501 – 19,167 £1,598
19,168 + £1,660

Additionally and as previously announced as part of the the CPCF arrangements for 2020/21, Establishment Payments will be reduced from April 2020 as part of the planned phase out of these payments by the end of 2020/21.

The Establishment Payment will reduce to half the current level in April 2020, with a planned further reduction from October 2020. Details of the changes are included in the April 2020 Drug Tariff, and are laid out in the following tables:

Number of items per month from 1 April 2020 Monthly Establishment Payments from 1 April 2020
2,500 – 2,829 £291
2,830 – 3,149 £302
3,150 + £314

 

Number of items per month from 1 October 2020 Monthly Establishment Payments from 1 October 2020
2,500 – 2,829 £97
2,830 – 3,149 £101
3,150 + £105

 



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