Page 10 - P4304.1-V104_PS Magazine - December 24

Concessions Myth

I’m writing this article on the back of not out of pocket the NHSBSA grants a
possibly the greatest number ever of emails temporary higher DT price for that medicine
I have received on a single subject - that in that same month. Unfortunately, in some
of concessions and how to handle them. instances, after clawback, the concessionary
I can see from the questions you are all DT price increase is not enough to cover the
asking around ‘endorsing’ concessions, the cost of purchasing the item and as such the
information available to you is causing more reimbursement price will leave a shortfall
confusion than clarity and so I am going to (loss).
try and really get you all to the bottom of how An important note here; YOUR purchase
you can handle concessions knowledgeably. price may not rise above DT price even when
Now, I know I have always said forget about concessions are granted. It will depend on the
concessions as they pretty much look stock holding of your wholesaler and what
after themselves, but this is not always an prices they are able to supply at. Usually,
opinion that other sources of information the number of lines purchased where the
are supporting so I want you to be able to concession price is greater than the purchase
make informed decisions regarding how you price outweighs those that are short and if
choose to handle them. I am going to take you your wholesaler generic prices are keen you
through the steps of analysing your choices will still be in the black.
when you come across an above tariff The table below shows the analysis I did in
concession and then walk you through the July and September 2024 comparing the
actions you might want to take to minimise PSUK APM prices and concession prices
losses if that is possible. (after clawback) and as you can see an
One thing I want to start with though, is average practice was still benefiting from
reminding you that TIME IS MONEY! You must concessions without any intervention.
keep this at the forefront of your mind when
you decide whether analysing or altering
prescriptions for the sake of a few pence is PPP loss/ Average
worth the staff hours required to carry out the profit Volume
task. In other words, you probably need to be
selective here and look out for the big wins Losses -1.17 68 -£79.56
that will really make a difference.
Gains 1.87 253 £473.11
So, let’s get started. Overall £393.55

What is a concession?
We should all understand what a concession
line is by now, but let’s recap for clarity and for PPP Loss/ Average
those of you for whom this is a new concept. Gain Volume
Concessions occur when market analysis Losses -£1.04 101 -£105.04
indicates that selling/purchase prices of
a generic medicine are rising above the Gains £2.37 194 £459.78
Drug tariff (DT) price for that month and Overall £354.74
to make sure dispensing contractors are

10 PS Magazine | Concessions Myth Buster Buy direct online at PSUK.co.uk

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P4304.1-V104_PS Magazine - December 24.indd 10
P4304.1-V104_PS Magazine - December 24.indd 10 14/11/2024 16:04:45