Community pharmacists question future role in medicines procurement

Cat M adjustments need rethinking, pharmacy negotiator admits

There are now “longer term questions” about the role of community pharmacy in medicine procurement, as well as the margin allowance which is managed through Category M adjustment, Mike Dent, director of pharmacy funding at Community Pharmacy England, told the DDA conference earlier today.

Opening the DDA 2023 conference with a presentation entitled: ‘The economy, stupid’, the community pharmacy negotiator said that serious shocks in drug pricing and supply, as well as suppressed Drug Tariff pricing, continued to hit pharmacy profitability.

Citing supply problems in areas such as HRT, antibiotics, and, most recently, atorvastatin, Dent explained that there is growing reluctance among manufacturers to supply the UK market as prices for generics are so low. This adds pressure on pharmacy dispensers who have to manage peaks in demand and ongoing growth in prescribing volume, he said.

Looking in detail at Drug Tariff issues, that also affect dispensing practices, he said that government efforts to recoup margin owed by pharmacies had led to long-term suppression of reimbursement levels, which had filtered through into the wider supply chain. This was contributing to instability and volatility, he said. The fixed 'envelope' of agreed margin was also being pressured by overall item volume growth.

In a survey of pressures, community pharmacies said that medicine supply issues were an every day occurrence.

Almost one in five pharmacies said they had been subject to unplanned closures due to staff shortages
56 per cent of pharmacy owners were extremely concerned about the wellbeing of their teams.

View the presentation: ‘The Economy, Stupid’

Conference news Pharmacy Owners' News