October 12th 2026

By Ailsa Colquhoun

DDA26: Straightforward dispensary profitability is long gone

“Dispensary done well is not just profitable — it funds better patient care.” That was the call to action from Dr Ed Allen, GP partner & GP lead for dispensing and medicines management, Victoria Surgery, Bury St Edmund and chair, Suffolk LMC.

In his presentation, Improving Dispensary Profitability, Dr Allen pointed out that the days of straightforward dispensing profitability were gone.

He said: “Margins on generics are much tighter. Brand discounts are fewer and further between.”

In a six-point plan for delegates, he set out the following:

• Know your numbers — commission or conduct an ePACT2 audit. You cannot optimise what you cannot see
• Build a formulary and get GP buy-in. It guides profitable choices where clinical equivalence already exists — it is not a restriction
• Know your MDS and which wholesaler unlocks each one. Buying from the wrong place forfeits the discount entirely
• Consider eCASS to reduce purchasing workload, improve price comparison, and simplify above-tariff endorsing
• Consider Dispens-IT if second check and rota flexibility are pressure points — affordable and effective add-on
• Medicines management is not optimising for your dispensary. Understand their incentives and make your own decisions accordingly.

He said that a survey of his dispensary finances had identified the following improvements:

• Shortliners underused for generic ordering:
• Generics above tariff not consistently endorsed
• Brand discount and MDS awareness gaps
• Parallel import opportunities missed
• No formulary in place.

View the presentation slides  

Listen to the audio