Clawback

In dispensing practice, discount recovery deductions (known as ‘clawback’) are applied by the NHS to all reimbursements (irrespective of the actual purchase price) in order to control profits on NHS purchases.

Where available purchase discounts are less than the applicable clawback rate, the dispensing practice will dispense that item at a loss. 

In community pharmacies a growing range of drugs are classified as ‘Discount Not Deducted’ (DND) and thus, have no clawback applied to the reimbursement the pharmacy receives, protecting pharmacy profits. This concession is not available to dispensing practices, despite the shared nature of the drug tariffs. 

For more information

Pharmaceutical Services Negotiating Committee website information on discount deduction and items classified as DND.