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Dispensing & SupplyPSNC News

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June 2018 Price Concessions/NCSO - 3rd update

Department of Health and Social Care (DHSC) has today granted the following initial list of price concessions: Drug Pack size Price Concession Co-codamol 30mg/500mg capsules 100 £4.50 Diamorphine 10mg powder for solution for injection ampoules 5 £16.56 Doxazosin 4mg tablets 28 £0.78 Glimepiride 3mg tablets 30 £4.00 Latanoprost 50micrograms/ml/timolol 5mg/ml eye drops 2.5ml £6.90 Latanoprost...

Thu, 21 Jun 2018 16:01:17 +0000

Class 2 MHRA drug alert - Own-brand children's glycerine and blackcurrant cough syrups manufactured by Bell, Sons & Co.

Drug alert number: EL (18) A/10 Date issued: 20th June 2018 The Medicines and Healthcare Products Regulatory Agency (MHRA) has issued a class 2 wholesaler and pharmacy level recall, to be actioned within 48 hours, for certain batches of: Asda Children's Dry Cough Syrup Glycerol Blackcurrant Flavour; Bell's Healthcare Children's Dry Cough Glycerin 0.75g/5ml Syrup; Morrisons...

Wed, 20 Jun 2018 10:31:41 +0000

June 2018 Price Concessions/NCSO - 2nd update

Department of Health and Social Care (DHSC) has today granted the following initial list of price concessions: Drug Pack size Price Concession Amisulpride 100mg tablets 60 £9.95 Amisulpride 50mg tablets 60 £7.52 Bicalutamide 150mg tablets 28 £16.00 Bicalutamide 50mg tablets 28 £14.75 Chlorpromazine 50mg tablets 28 £31.46 Doxazosin 1mg tablets 28 £0.80 Doxazosin 2mg tablets...

Tue, 19 Jun 2018 16:04:51 +0000

Class 4 MHRA drug alert - Bleo-Kyowa, Powder for Solution for Injection, 15,000 IU (Kyowa Kirin)

Class 4 MHRA drug alert - Bleo-Kyowa, Powder for Solution for Injection, 15,000 IU (Kyowa Kirin) Drug alert number: EL (18) A/09 Date issued: 19th June 2018 The Medicines and Health products Regulatory Agency (MHRA) has issued a class 4 pharmacy level caution in use for: Bleo-Kyowa®, Powder for Solution for Injection, 15,000 IU PL...

Tue, 19 Jun 2018 12:17:19 +0000

PSNC submits evidence to PCSE inquiry by MPs

PSNC has provided written evidence to an inquiry into the Primacy Care Support England (PCSE) services provided by Capita. Following the National Audit Office Report on NHS England's management of the primary care support services contract with Capita, the Public Accounts Committee decided to conduct an inquiry. The committee of MPs, responsible for overseeing government...

Mon, 18 Jun 2018 16:49:34 +0000

June 2018 Price Concessions/NCSO - 1st update

Department of Health and Social Care (DHSC) has today granted the following initial list of price concessions: Drug Pack size Price Concession Amisulpride 200mg tablets 60 £14.98 Aripiprazole 10mg tablets 28 £2.86 Digoxin 125microgram tablets 28 £1.50 Digoxin 250microgram tablets 28 £1.50 Digoxin 62.5microgram tablets 28 £1.50 Lacidipine 2mg tablets 28 £2.95 Levetiracetam 100mg/ml Oral...

Fri, 15 Jun 2018 16:01:11 +0000

Drug Tariff Watch: July 2018 changes

The Preface lists additions, deletions and alterations to the Drug Tariff. Below is a quick summary of the changes due to take place from 1st July 2018. Part VIIIA additions Category A: Cisplatin 100mg/100ml solution for infusion vials SC (1) Fentanyl 100micrograms/2ml solution for injection ampoules (10) Phenylbutazone 100mg tablets (84) Quinagolide 50microgram tablets and Quinagolide 25microgram tablets SC (6) *Water...

Thu, 14 Jun 2018 08:00:54 +0000

Endorsing Webinar now on-demand

Almost 400 people tuned in to PSNC's recent Endorsing Webinar and community pharmacy contractors can now access an online recording. During the webinar our in-house Drug Tariff experts outlined the dos and don'ts of endorsing using a series of sample prescriptions as seen by the PSNC Pricing Audit Centre and the NHS Business Services Authority (NHS BSA). The team also answered...

Wed, 13 Jun 2018 12:30:42 +0000

Generic medicines pricing issues: National Audit Office publishes findings

The National Audit Office (NAO) has today published the findings of an investigation into NHS spending on generic medicines in primary care. The NAO was investigating the unexpected increase in prices of certain medicines purchased to fulfil NHS prescriptions seen last year, which caused much additional work and worry for community pharmacy contractors, with purchase...

Fri, 08 Jun 2018 08:42:23 +0000

Last chance to register for PSNC's Endorsing Webinar

Community pharmacy teams are reminded that PSNC's Dispensing and Supply Team will be holding an Endorsing Webinar on Tuesday 12th June at 7:30pm. During the webinar our in-house Drug Tariff experts will talk you through the dos and don'ts of endorsing using a series of sample prescriptions as seen by the PSNC Pricing Audit Centre and the NHS Business...

Tue, 05 Jun 2018 08:00:38 +0000

Pharmaceutical TipsLPC News

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Deadline approaches: CPAF screening survey

Community pharmacy contractors are reminded that they have until 11.59pm on Sunday 1st July 2018 to complete the 2018/19 Community Pharmacy Assurance Framework (CPAF) screening questionnaire. 59% of contractors had submitted the survey as of today (21st June), which is broadly in line with previous years. Last year, 98% had completed it by the deadline....

Thu, 21 Jun 2018 14:17:49 +0000

PSNC submits evidence to PCSE inquiry by MPs

PSNC has provided written evidence to an inquiry into the Primacy Care Support England (PCSE) services provided by Capita. Following the National Audit Office Report on NHS England's management of the primary care support services contract with Capita, the Public Accounts Committee decided to conduct an inquiry. The committee of MPs, responsible for overseeing government...

Mon, 18 Jun 2018 16:49:34 +0000

CPAF screening process begins

The 2018/19 Community Pharmacy Assurance Framework (CPAF) screening questionnaire is now available for completion for four weeks from today (Monday 4th June 2018) until Sunday 1st July 2018. Now in its fourth year, the process asks all NHS community pharmacy contractors to complete a short screening questionnaire consisting of 10 questions; NHS England will then...

Mon, 04 Jun 2018 12:35:53 +0000

NHS Urgent Medicine Supply Advanced Service (NUMSAS) Update

An NHS Urgent Medicine Supply Advanced Service (NUMSAS) update was emailed by NHS England to all providers on 31st May 2018. Key progress has been reported as: 3,857 community pharmacies registered for NUMSAS as of 28th May 2018; 66,191 referrals to NUMSAS registered pharmacies from December 2016 to January 2018; Controlled Drugs amounted for approximately...

Mon, 04 Jun 2018 10:11:42 +0000

PSNC May Meeting: summary for contractors now available

PSNC met earlier this month with discussion topics including an examination of the current pharmacy funding situation, managing the practical implications of the phased supply of adjuvanted influenza vaccine (aTIV) for the 2018/19 Flu Vaccination Service, and supporting LPCs' work in the local commissioning landscape. PSNC's May meeting was held on the 8th and 9th...

Tue, 29 May 2018 13:30:39 +0000

PSNC sets out vision for pharmacy at national public health conference

We are exhibiting at the @PrimaryCareShow - visit us at stand H163 to chat about community pharmacy #PrimaryCareShow pic.twitter.com/rKJwPrLM6G - Zainab Al-Kharsan (@Zainab_PSNC) May 16, 2018 PSNC last week took part in the Primary Care and Public Health conference, promoting community pharmacy to a wide range of primary care professionals and commissioners, along with charity...

Mon, 21 May 2018 16:54:04 +0000

MPs hear how pharmacies could better help people with long-term conditions

The All-Party Pharmacy Group (APPG) has met this week (May 14th) to consider how the community pharmacy contractual arrangements could be changed to enable pharmacies to better support patients with long-term conditions. The meeting was chaired by Sir Kevin Barron MP and attended by Steve Double MP and Julie Cooper MP. It followed a series...

Thu, 17 May 2018 14:13:51 +0000

NAO investigation of PCSE finds fault with both Capita and NHS England

Neither Capita nor NHS England fully understood the service levels and performance standards required to fulfil the Primary Care Support England (PCSE) role when the contract began, an investigation by the National Audit Office (NAO) has concluded. The NAO report on NHS England's management of the PCSE contract with Capita states that whilst NHS England...

Thu, 17 May 2018 08:08:44 +0000

PSNC training on local service development

Preparing Bids and Business Cases Local commissioning is changing and with change comes new opportunities for community pharmacy services. Event details When is it? Sessions will be held on Wednesday 6th June (in London) and Tuesday 12th June (in Manchester), both from 10am to 4pm. How do I register? Please click here for further information and to...

Mon, 14 May 2018 11:23:09 +0000

NHS turns 70: primary care event

2018 marks 70 years since the NHS came into being and events are being planned throughout the year to celebrate this milestone. As part of the 'NHS70' celebrations, NHS England is running a 10-day event to highlight the role of primary care in the NHS, and community pharmacy teams are encouraged to join in. Between...

Fri, 20 Apr 2018 11:42:56 +0000

About PharmacyNHS News

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Paul Baumann, Chief Financial Officer, to leave NHS England

After 11 years with the NHS, Paul Baumann CBE is to leave the Health Service in November to take up the post of Receiver General of Westminster Abbey. Paul agreed to delay confirming a start date for his new role until the long-term NHS financial settlement was confirmed this week. Paul is Chief Financial Officer [...]

Thu, 21 Jun 2018 11:00:31 +0000

Allied Health Professions hold key role in future NHS

The Allied Health Professions (AHPs) have a significant role to play in the future delivery of integrated urgent care within the NHS. And the quality of leadership of the AHPs will be vital in determining their impact and the quality of care that patients receive. These are two of the key findings of a study [...]

Wed, 20 Jun 2018 09:00:02 +0000

Black and ethnic minority NHS staff honoured in NHS Windrush 70 Awards

A mother and daughter who have dedicated their working lives to the NHS are amongst the black and minority ethnic NHS staff who have been honoured as part of NHS England's Windrush awards. Winners of the prestigious awards include retired nurse Beatrice Akyeampong, who was recognised alongside her daughter, Dr Vanessa Apea, a sexual health [...]

Wed, 13 Jun 2018 13:32:30 +0000

NHS launches plan to improve patient care by cutting long hospital stays

The NHS has today (Wednesday 13 June) announced plans to improve patient care by cutting long stays in hospitals. Speaking at the annual NHS Confederation conference at Manchester Central Simon Stevens and Ian Dalton, the Chief Executives of NHS England and NHS Improvement, will set out the plans which will also help to free up [...]

Tue, 12 Jun 2018 23:01:28 +0000

NHS mental health job coaches help thousands of people into work

The NHS is set to roll out mental health employment specialists across the country, as a new analysis of services shows that 2,300 patients have been helped into work in the last year. As part of patients' care and support package, employment specialists in NHS Individual Placement and Support (IPS) services, offer advice about finding [...]

Tue, 12 Jun 2018 11:14:02 +0000

NHS England announces areas to receive new funding to improve employment support for people with severe mental illness

As outlined in the Five Year Forward View for Mental Health and Implementing the Five Year Forward View for Mental Health, NHS England has committed to doubling access to Individual Placement and Support (IPS) services nationally by 2020/21, enabling approximately 20,000 people who experience a severe mental illness (SMI) to find and retain employment. Rates [...]

Tue, 12 Jun 2018 09:58:18 +0000

"Fantastic" NHS staff recognised in the Queen's Birthday Honours

In the weeks before the NHS's 70th birthday, one in eight of the Queen's Birthday Honours have been awarded for contributions to health, including more than 60 awards to NHS staff. Midwives, nurses, psychiatrists, GPs and volunteers are among the wide range of people honoured for their work in the health service. NHS staff have [..]

Fri, 08 Jun 2018 21:30:58 +0000

NHS England strikes deal on new NICE recommended lung cancer immunotherapy drug

NHS chief Simon Stevens has today announced that NHS England has struck a deal with MSD, endorsed by NICE, to make the lung cancer drug pembrolizumab available for routine use on the NHS. New trial results show pembrolizumab extends life for certain adults with lung cancer for more than a year. Pembrolizumab is the first [...]

Wed, 06 Jun 2018 08:09:50 +0000

NHS England welcomes homeopathy court ruling

NHS chief Simon Stevens has today welcomed the High Court's decisive rejection of a legal challenge by the British Homeopathic Association to overturn plans to no longer routinely fund homeopathy on the NHS. As part of action to clamp down on waste, over the last two years NHS England has taken action to curb prescriptions [...]

Tue, 05 Jun 2018 14:49:17 +0000

Lifetime NHS mental health care for sexual assault victims

Victims of sexual abuse will receive a lifetime of mental health care to help cope with the trauma, NHS England has announced. As part of a five year strategy delivering a new package of sexual abuse and assault care across England, the NHS has set out plans for better care, including Sexual Assault Referral Centres [...]

Mon, 04 Jun 2018 09:54:00 +0000


Category M reimbursement prices to increase from August 2018

Admin - 19/07/2018, 16:31

Announcement Summary

  • PSNC has negotiated a 15m increase in Category M prices from August 2018
  • The increase comes as DHSC ceases, margin recovery for now, recognising the impact on contractor's cashflow
  • This decision is positive and reflective of the collabrovative working relationship between DHSC and PSNC
  • Further excess margin earned in 2016/17 will need to be recovered at a later date and PSNC and DHSC will discuss this further before the October Drug Tariff

Contractor Information

Category M reimbursement prices will increase by 15 million a month from August 2018, the Department of Health and Social Care (DHSC) has confirmed.

The increase is because DHSC has agreed to cease the 15 million per month reduction in prices that had been in place to recover estimated excess margin delivered to pharmacies in 2015/16 and 2016/17.

These reductions had been in place since August 2017 and had been set to continue. This was because the latest Margins Survey results from 2016/17 suggest that there was over-delivery of margin in that financial year, with some excess yet to be recovered by DHSC.

The decision to cease the Category M price reductions to recover margin now was a result of negotiations with PSNC in which we raised concerns about the impact of price reductions on contractors' cash flow.

However, underlying Category M prices will continue to be based on manufacturers' data so prices will still reflect the lower purchase prices that led to the additional reduction in prices seen in the July Tariff.

PSNC Director of Pharmacy Funding Mike Dent said:"The decision to cease margin recovery in the short-term in light of PSNC's representations about contractors' cash flow is very positive and reflective of the collaborative relationship that we are trying to rebuild with the DHSC.

PSNC will be working, through the negotiations on funding and in discussions with the Department, to get the best possible deal for contractors and to ensure that any future mechanisms to correct margin delivery are as manageable as possible in terms of cash flow."

Frequently Asked Questions


Q. What is happening to Category M reimbursement prices in August?

A.Category M prices are affected by two factors:

  • the underlying manufacturers' data; and
  • the margin required to make the supply chain work effectively.

In August, the underlying prices will carry on at levels introduced in the July Tariff, but prices will increase because the margin recovery has been removed. Prices will therefore be 15 million higher than they would otherwise have been had DHSC not agreed to suspend the recovery.

Q. For what months will these prices apply?

A. There will be a new Drug Tariff for August which will spread the 15 million uplift (because margins recovery has ceased) across the Category M products. This will apply for September as well.

Q. What will happen to prices from October?

A. In October there will be a new Drug Tariff based on manufacturers' data. At the moment the timing or quantum of any future adjustments are not known.

Q. How much excess margin has still not been recovered by DHSC?

A. The results of the Margins Surveys for 2016/17 and 2017/18 are still being analysed and discussed with DHSC. The survey for 2017/18 is taking far more work than usual because of the need to deal with the very many price concession lines set throughout the year.

Q. Is there any update on the funding negotiations and how does all this feed into those?

A. There is no update - funding negotiations for 2018/19 have not yet begun. The changes to Category M prices are part of PSNC's ongoing work to ensure that the full amount of community pharmacy funding is delivered to contractors.

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