Dr. Murrison: To ask the Secretary of State for Health (1) what financial support is available to pharmacists dispensing fewer than
2,000 items a month from (a) primary care trusts and (b) central Government; [214169]
(2) what annual savings his Department expects to make as a result of the withdrawal in 2008 of the Establishment Fee for smaller
pharmacies; [214201]
(3) what estimate his Department has made of the number of pharmacies that will close as a result of the withdrawal in 2008 of the
Establishment Fee for smaller pharmacies; [214202]
(4) what financial support will become available to pharmacists dispensing fewer than 2,000 items a month (a) from primary
care trusts and (b) from central Government after the withdrawal of the Establishment Fee in 2008. [214203]
Mr. Lansley: To ask the Secretary of State for Health (1) what progress is being made in developing a standard form for local
pharmaceutical services under the new pharmacy contract; [216148]
(2) what the reasons are for restricting the exit payment under the new pharmacy contract to the first year of the contract's
operation; [216149]
(3) what support will be given to pharmacies dispensing less than 2,000 items per month under the new pharmacy contract. [216150]
Ms Rosie Winterton: The current essential small pharmacies scheme (ESPS) enables pharmacies dispensing fewer than 26,100
prescriptions per year and located more than 1 km from the next nearest pharmacy to receive financial support. This is currently
£43,150 per year. There were 223 ESPS pharmacies in England as at 31 March 2004. National health service primary care trusts
(PCTs) can in addition support, or commission services from, other pharmacies with lower dispensing volumes in their area that do
not meet the ESPS criteria if they wish to do so.
The new community pharmacy contractual framework, due to go live from 1 April, will include special measures for pharmacies
with lower dispensing volumes. The ESPS will continue and in 2006-07, we plan that these pharmacies will be able to choose whether
to convert to being a local pharmaceutical services (IPS) pharmacy and retain their current ESPS entitlements or to transfer to the
new contractual framework. In addition, a standard form of IPS for other pharmacies, with lower dispensing volumes, is being
developed. This may help increase income for such pharmacies where they provide services which meet local health care needs.
We expect these support arrangements to continue to be in place in 2008. We also expect NHS PCTs will, in reviewing their assessment
of pharmaceutical needs, continue to consider what support can be offered to pharmacies with lower dispensing volumes which
contribute effectively to meeting such needs.
Pharmacies dispensing between 1,100 and 2,000 items a month will continue to receive the professional allowance until
31 March 2008. This ranges from £9,300 to £18,000 per year, depending on prescription volume. Pharmacies dispensing fewer
than 2,000 prescriptions per year will also receive the new practice payment. Pharmacies dispensing under 1,100 prescriptions per
month will receive a payment of £500 per annum as part of the practice payment. Additionally, pharmacies will have the option,
during the first year of implementation, to decide whether they wish to relinquish their right to provide NHS services and to
receive compensation.
We discussed and agreed as part of our negotiations with the pharmaceutical services negotiating committee that pharmacies would be
entitled during the first year of the new contractual framework to claim an exit payment. That framework will enhance the range and
quality of pharmaceutical services contractors offer-- and which patients will come to expect--in future. None the less, we
recognised that some contractors may not wish to continue to provide services though we hope this number will be very few. We
believe we have allowed a reasonable time limit within which contractors should come to a decision. To prolong the period for
deliberation risks depriving all patients of the benefits the new arrangements will bring.
We estimate that some 650 community pharmacies in England--or approximately 7 per cent. of the total-- will be eligible for
these special support arrangements in 2005-06. We have not estimated the number of such pharmacies that will close when these
arrangements come to an end in 2008. That is a commercial decision for the contractor concerned. Consequently, we have not estimated
any savings that may accrue. We do however fully expect all contractors to take advantage of the significant opportunities the new
framework offers to expand the range and quality of services they offer and to be remunerated accordingly.