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The Funding Package

December 21, 2016 by Nitin Makadia0

Pharmacy Funding Series

1st in our series of 4

Single Activity Fee

Whilst the headline message is clear…Pharmacy funding has been significantly cut…what this means is a little less clear because the funding model has changed


So what’s changed?

Until now, contractors were paid a combination of fixed payments plus dispensing fees. Those fixed payments provided the security of a certain amount of minimum income.

This is no longer the case. Those fixed payments have been rolled into the dispensing fee which is now called the Single Activity Fee, and means this part of the funding is entirely volume driven. So, if previously you were a lower dispensing volume pharmacy and relied on those fixed payments as a significant proportion of your income then, unless you qualify for the Pharmacy Access Sceme, you will see a significant reduction in income.


So, as a high dispensing volume pharmacy I must be a winner in the new contract?

Unfortunately, no. The entire funding pot for Community Pharmacy has been cut and this new model of payment simply means that, whilst everyone is affected, lower dispensing volume pharmacies will be disproportionately hit. Also, as the the Pharmacy Access Scheme (PhAS) is also funded from the reduced funding pot, it means all pharmacy contractors who are not eligible for PhAS are effectively funding it for those who are.


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