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So how does the above impact you?
I wanted to share those examples with you to ensure that your team are fully
aware of the potential impact they can have on the bottom line if they are
unsure of how the APM rebate proposition works.
I visited two practices at the back end of last year, the first were having
regular visits with their Dispensing Doctor Account Manager who was
informing them that their average was around 25% or 26%. Therefore, they
started to check the invoice price on our portal against another mainline
wholesaler, by subtracting around 25% off the portal price. This resulted in
them spending £5k with an alternative supplier. However, as you can see from
the screenshot above, the rebate on some products can be as much as 80%.
We conducted a price comparison for the customer and discovered that they
would have saved just under £1300 if they had purchased the goods from
PSUK, a significant saving.
The second member had moved across to PSUK from another wholesaler,
previously they were on a proposition that had a spend compliance target.
Their portal listed the price that they would pay if they hit a Spending target,
set against their first line spend. Staff were comparing our starting invoice
price against their previous wholesalers best price, which they were no longer
receiving. Keynote - If you have moved to PSUK from another mainline
wholesaler it is worth double checking that you are still receiving the price
the portal states and if not ask to me moved to a different proposition that is
better suited.
This is a simple mistake to make! The generic market is complex, I have
challenged my team to ensure they are talking about how APM works to all
members. This could be happening in your practice and it will be impacting on
profits massively at a time where every penny counts.
Something else we have done this year - due to the volatility of generics
pricing and feedback from members, we added a functionality that highlights
over tariff lines with the wording Over DT once discounts have been deducted.
If you proceeded to order a product with this wording it would be recorded on
your Drug Tariff tab, it’s important here to note that concessions are awarded
towards the end of the month, making some products that were over tariff...
under tariff. Therefore, I suggest checking this tab at the end of the month
once concessions have been granted, as in most cases there will only be a
handful of products left. This also only works for members ordering through
the portal or via EMIS clinical systems.

Top 100 versus tariff

We work hard to ensure we are offering you DT APM
one of the most competitive prices in the Price Price
market, and this is evidenced when you look Top 20 Average Prices £1.08 £0.62
at the average savings vs Drug Tariff on the
top 100 products. The below table shows how Top 20 Saving £0.46
the October pricing on the top 100 compares 43%
vs DT. You will be pleased to know that all the
top 100 products came in below tariff, you Top 50 Average Prices £1.11 £0.68
can also see the average saving against Drug £0.44
Tariff for each section, I have broken them Top 50 Saving 39%
down into the top 20, 50 and 100. Hopefully,
this gives you some reassurance that at PSUK
we continue to offer the most competitive Top 100 Average Prices £1.54 £1.02
generic pricing in the market across your Top 100 Saving £0.52
basket and allows you to concentrate on other 34%
therapy areas to maximise your margins.

6 PS Magazine | Generic Purchasing Buy direct online at PSUK.co.uk

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