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Extraordinary Cat M adjustment to add £15m per month

August adjustment to be announced

July 16th 2019

Tagged: DM Zone news

By Ailsa Colquhoun

Category M reimbursement prices are being amended from 1 August 2019, to add £15 million per month to retained purchase profits.

This is outside of the usual three monthly cycle, and is to correct a predicted shortfall in the agreed pharmacy margin delivery rate for the current financial year.

Although Category M prices increased in April 2019, April reimbursement levels were lower than anticipated.  This appears to have been driven by movement in the drug mix in April, which means that contractors have not seen the positive cash flow impact that would have been expected.

The margin recovery process has affected contractors’ cashflow and, in a statement, PSNC remains very concerned about the difficult financial position many contractors find themselves in. The negotiator for pharmacies in England said: “August price increases should bring at least some relief to contractors, but we will continue to monitor delivery of margin and to press for improvements to funding delivery to try to avoid similar cashflow issues recurring in the future.”


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