National Pharmacy Funding Agreed

The Pharmacy Minister, Earl Howe has agreed funding of £2.49 billion for community pharmacy services in England for 2010-2011.
As a result, contractors have earned £140 million above the overall £500 million contractual target for retained purchase profits. £120 million will be recovered through adjustment to category M prices this year and £20 million will be recovered in 2011.
PSNC chief executive Sue Sharp said, “This is an encouraging settlement in challenging financial times. However contractors will no doubt feel the effects of excess margin recovery when January payments come through.”
Contractors should prepare for the impact of category M adjustments in the 2nd half of the year.