Pharmacy: Contracts

The Department reviewed the price concession process as part of the 2022/23 and 2023/24 Community Pharmacy Contractual Framework Funding. This review resulted in the implementation of several improvements including:

• no discount deducted on products granted a concessionary price;

• the introduction of a ‘roll-over mechanism’ so concessionary prices granted after a certain date can be rolled over into the following month; and

• the introduction of a ‘retrospective top-up payment for concessionary prices’, which provides an additional payment to contractors when the medicine margin survey indicates that despite a concessionary price, there was a significant under payment.

The Department works closely with Community Pharmacy England (CPE), the representative body for community pharmacies in England, to ensure that we set fair and timely concessionary prices. CPE can submit requests for concessionary prices at any point during the month to the Department for consideration. The Department aims to agree and publish concessionary prices as swiftly as possible, however, the process of getting updated market data from suppliers and considering each price with CPE can take time. Concessionary price requests submitted by CPE later in the month or even re-requested once granted at the end of the month, may have final prices released towards the end of the month or early in the following month.