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A. When community pharmacies or dispensaries cannot
source a generic drug at or below the reimbursement price
as set out in the Drug Tariff, the Department of Health
and Social Care (DHSC) can introduce a concessionary
Q. What are concessions Drug Taariff price at the request of Community Pharmacy
England (CPE). A price concession can be requested for
and how should we be any drugs listed in Part VIIIA, Part VIIIB and Part VIIID of the
endorsing them? Drug Tariff.

Upon receiving CPE’s initial request, DHSC conducts its own
research into the market, by gathering volume and price
information of drugs from manufacturers, wholesalers and importers, who within two
working days, are required to provide volume and price information to support the
process for setting concessionary prices in England. The process is on-going through
any given month and when finally granted the new DT price will be automatically
reimbursed at the new rate for all prescriptions for that item in that month.
Whilst the number of items on concession this past year have been at an all time high,
the concession prices have on the whole been generous and if you have purchased
your generics via the PSUK APM scheme then you will have had a healthy profit on
the vast majority of lines.

3 Month 6 Month 9 Month 12
Month Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Month
Average Average Average Average
Concessions 178 144 156 135 132 135 139 130 139 155 159 169 161 149 144 148
Granted
Average £9.67 £9.92 £8.14 £8.83 £9.08 £10.16 £10.72 £11.08 £11.34 £8.72 £11.20 £12.18 £10.70 £10.87 £10.37 £10.09
Concession
Price
Average £8.13 £8.60 £7.33 £7.36 £7.95 £8.37 £8.65 £9.65 £10.64 £7.33 £9.64 £10.98 £9.32 £9.48 £8.95 £8.72
APM Price
Average £1.54 £1.32 £0.81 £1.46 £1.13 £1.79 £2.06 £1.43 £0.70 £1.38 £1.56 £1.20 £1.38 £1.39 £1.41 £1.37
APM Saving
17% 14% 11% 16% 16% 18% 16% 15% 13% 17% 18% 15% 0 0 0 0

More 15 13 16 13 15 9 12 11 15 5 7 8 7 10 11 12
Expensive
8% 9% 10% 10% 11% 7% 9% 8% 11% 3% 4% 5% 4% 7% 8% 8%
Average -£0.96 -£1.53 -£1.90 -£0.94 -£1.57 -£2.28 -£1.51 -£1.45 -£4.72 -£1.20 -£1.50 -£2.95 -£1.88 -£2.22 -£2.01 -£1.88
Loss
-18% -35% -33% -21% -21% -32% -24% -19% -15% -11% -8% -18% -12% -16% -19% -21%

Same Price 10 7 7 2 4 2 4 4 7 8 4 6 6 6 5 5
6% 5% 4% 1% 3% 1% 3% 3% 5% 5% 3% 4% 4% 4% 3% 4%

Cheaper 153 124 133 120 113 124 123 115 117 142 148 155 148 133 129 131
86% 86% 85% 89% 86% 92% 88% 88% 84% 92% 93% 92% 92% 90% 89% 88%
Average £1.88 £1.70 £1.18 £1.75 £1.53 £2.11 £2.48 £1.76 £1.44 £1.55 £1.74 £1.46 £1.58 £1.74 £1.76 £1.72
Profit
21% 20% 17% 20% 21% 21% 20% 19% 17% 19% 20% 18% 19% 19% 19% 19%
Regarding endorsing – my message would be there really is no need and not much
point. The concessionary price is calculated to give you and every other dispensing
contractor, adequate reimbursement for items supplied in that month and given that
these lines are all in part 8 of the DT, an endorsement is not going to be relevant or
change the price paid. Even on the odd occasion that there is a deficit going to be
incurred, it is unlikely an endorsement will fix this
so I would leave well alone and concentrate on
jobs that need doing!
If you have any queries, contact me at

carolinepond@chasepeople.com

or call us on 01904 558 350

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