New volume-related PQS payment structure introduced

New volume-related PQS payment structure introduced

August 27, 2020

The full details of the Part 2 Pharmacy Quality Scheme (PQS) for 2020/21 are now available to pharmacy contractors.

Total funding for the scheme is a minimum of £56.25m, with any unused funding from the Part 1 scheme also being added to the total.

A new approach to allocating the funding is being introduced in this scheme, with each domain having points allocated to it, but these vary dependent on the prescription volume of the contractor.

This change has been introduced to better recognise the varying workload and hence costs incurred by different contractors complying with the requirements of the scheme. While some costs will be common to contractors of all sizes, most of the elements of this new scheme involve variability of costs related to the number of staff employed at the pharmacy and staffing levels generally vary in relation to prescription volume.

How the new system works

Each domain has a designated maximum number of points dependent on the participating contractor’s total prescription volume in 2019/20.

Additional points are also available to contractors who act as the Primary Care Network (PCN) Lead in either of the two PCN domains; these points do not vary with the total prescription volume of the contractor.

The funding will be divided between qualifying pharmacies based on the number of points they have achieved up to a maximum £96 per point. Each point will have a minimum value of £48, based on all pharmacy contractors achieving maximum points.

Payments will be made to eligible contractors depending on the band they are placed in, how many domains they have declared they are meeting, and hence points claimed.

Further details on the funding can be found in the September 2020 Drug Tariff.


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