Pharmacy Speaks What does the contractual framework mean

#Pharmacy. Speaks What does the contractual framework mean for my bottom line? Harpreet Chana

Aims We want you to leave with an understanding of the following: • How community pharmacy funding is currently distributed • How and when this will change under the new CPCF • How this will translate onto your bottom line • Overview of reimbursement changes • An intro to what you may need to consider operationally to be ready for the changes

Volume Related Fees - £ 1, 412 m Margin - £ 800 m Establishment Payment - £ 164 m Remuneration £ 2. 592 bn 2019 -2024 (with yearly review points) Ph. AS - £ 24 m NMS - £ 24 m PQS - £ 75 m MUR - £ 97 m

How Will This Affect My Bottom Line? Average* Pharmacy Payment Funding element NIC Single Activity Fee Other Item Fees Establishment Payment MUR NMS CPCS Transition Payment Notional margin Total Monthly Payment (Sept Payment (Oct 19) £ 51, 748 £ 9, 416 £ 697 £ 1, 255 £ 675 £ 165 £ 0. 00 £ 5, 747 £ 69, 703 £ 51, 748 £ 9, 416 £ 697 £ 628 £ 424 £ 165 £ 28 £ 780 £ 5, 747 £ 69, 633 Equates to: 15 MURs 2 CPCS 7 NMS A month *Assuming no Ph. AS and Hepatitis C and omitting QPS (6 monthly payment) Don’t forget to register for CPCS by 1 st December = £ 900! (drops to £ 600 if you miss the deadline but claim before 15 th Jan 2020)

Reimbursement Changes • Consultation closed mid Sept 2019 • Changes to most parts of the tariff • Move away from being paid on endorsement towards retrospective pricing based on manufacturer’s selling data (similar to Cat M) • Trying to tackle unequal distribution of margin and effects of local prescribing policies e. g. branded generics NPA’s response has been to eradicate dispensing at a loss and to tackle the price concession system

What do I Need to Consider Operationally? • Where do I stand financially? • Can I invest in service provision? E. g. digital solutions, 2 nd pharmacist? • How can I upskill my current team? • Advice on mergers/closings • £ 4. 5 bn held at PCN level • What are the needs of your local population? • How can you work better with your local competitors?

Questions?

NPA sessions on Sunday at the Pharmacy Show In the Keynote Theatre 10: 10 Mark Lyonette 12: 05 Michael Lennox & Nick Kaye 14: 50 Michael Lennox Leaders Panel: Working together for better community pharmacy Primary Care Networks and local pharmacy teams - LPC perspectives Primary Care Networks and community pharmacy: what you need to know In the Business Theatre 09: 40 11: 40 15: 00 17: 00 Harpreet Chana Jasmine Shah Atif Butt Jignesh Patel & Zubair Ahmed What does the new contractual framework mean for me? Preparing to deliver the new Contractual Framework in your pharmacy Understanding your business finances Generating income from private services In the Primary care Pharmacy Theatre 10: 55 13: 35 Nick Kaye Michael Lennox & Vikki Furneaux Community Pharmacy Workforce - developing the skills for success Making the case for PCN integration – challenges and opportunities In the Public Health & Wellbeing Theatre 09: 40 Helga Mangion Inside track on the public health agenda In the Technology Theatre 16: 45 Harpreet Chana Small steps to tech

NPA sessions on Monday at the Pharmacy Show In the Keynote Theatre 12: 05 Olivier Picard & Gareth Jones 15: 45 Michael Lennox & Mark Burdon What is the French pharmacy model and would it work in the UK? Fundamental Steps to a sustainable business model in response to commoditisation of supply In the Business Theatre 10: 20 Neville Fitzgerald The Truth about the Falsified Medicines Directive (2011/62/EC) - and how pharmacy can win! In the Clinical Theatre 15: 20 Andre Yeung & Mike Maguire NHS Community Pharmacist Consultation Service (formerly known as DMIRS): a golden opportunity for your pharmacy? In the Public Health & Wellbeing Theatre 12: 20 15: 40 Jackie Lewis & Anar Tejani Helga Mangion Practicalities of setting up a health screening service How to promote your pharmacy as self-care & urgent care In the Technology Theatre 10: 05 15: 25 Andrew Lane Gareth Jones Business Spotlight: Digital support for services Hub and Spoke