The NPA is calling for independent economists to calculate the impact of the recently agreed uplift in pharmacy funding on the financial sustainability of the sector.
An independent analysis, commissioned by NHS England and published by Frontier Economics and IQVIA in March, concluded that NHS funding was failing to meet full running costs for over 98% of pharmacy contracts.
The NPA is calling for the model to be re-run following the financial settlement for 2024/25 and 2025/26.
NPA Director of Corporate Affairs, Gareth Jones said:
“The Independent Economic Analysis proved that there was a very considerable gap between the funding provided by the NHS and the full economic cost of providing pharmacy services.
“That remains the case even after the uplift contained in the new contract arrangements agreed last month.
“It is crucial that the government continues to focus on the need to make the community pharmacy network more sustainable. Having up to date numbers on the sustainability of the sector would assist them in this task.”
The recommendation was amongst several contained in a new NPA report published this week.
Among other recommendations are:
Community pharmacy bodies should help to develop and propose ideas for reform of the CPCF alongside the work on substantive reform of the GP contract.
NHS England and the DHSC should fully engage all stakeholders in urgent reform of both the pharmacy and GP contracts, with a focus on sustainability, affordability and supporting the government’s strategic shifts and NHS 10-year plan.
NHS England should commission further work on which clinical services can be most efficiently delivered from community pharmacy as compared with general practice or the wider NHS - which was not fully answered by the original analysis - with a focus on the economics of future clinical services and the opportunities created by independent prescribers in community pharmacies in England.
Money’s too tight to mention - Lessons from the NHS England-commissioned Independent Economic Analysis of Community Pharmacy Finances, is available on the NPA website to members and non-members. https://www.npa.co.uk/representing-you/thought-leadership/
NPA members are welcome to our Improving Your Pharmacy Income Masterclasses: https://portal.npa.co.uk/npaportal/s/events
