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DDA newsletter explores declining profitability

Accord White Paper details reimbursement price trends

November 12th 2018

Tagged: DM Zone news DDA news Conference news

By Ailsa Colquhoun

A new Accord White Paper, UK generic medicine price flux? The real data behind the headlines, explains recent pressures on dispensary profits.

The White Paper, summarised in the latest DDA newsletter, details the “overall squeeze on reimbursement pricing since 2015”. This states that the average reimbursement price per pack has come down 22 per cent, amid consistent growth in the number of generic medicines covered by Category M.

According to the White Paper, reductions in the average reimbursement price per item increase the risk of product becoming unavailable at or below the given reimbursement price. For example, in April 2018 there were 47 generic medicines with a reimbursement price of 50p or less, with the lowest being 28p.  Accord says: “Clearly, at this level, prices don’t need to change much to create a squeeze between the market and reimbursement prices.”

The need to resolve the problem of loss-making dispensing was among the issues highlighted at the 2018 DDA annual conference, which is also covered in the new quarterly DDA newsletter. Addressing DDA members in his chairman’s address, Dr Richard West lobbied Government to “look after what you have”. Dispensing GP practice is the most efficient way of providing services in hard-to-cover areas, he told the conference. He added:  “Once lost, rural GP practice is very difficult to replace. New systems will be more expensive.”

As well as providing highlights from the 2018 DDA annual conference, the quarterly newsletter includes dispenser education modules on infertility and flu, and a resume of health content from the recent Autumn political party conferences.

The DDA newsletter is supported by an education grant from Accord Healthcare, and is distributed to selected Accord customers in print form.

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