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Document How was my pharmacy's practice payment calculated prior to 1 December 2016?

From 1 December 2016 practice payments have been subsumed within the Single Activity Fee. Therefore contractors no longer receive a separate practice payment each month. 

From 1 October 2016 to 30 November 2016 
practice payments were set out as in the table below. 

Your practice payment was calculated using two sets of figures and tables, as set out below. 

We firstly look at the number of items you have been paid for in that particular month as per the tables below:

 
Number of items
per month
Practice Payment for
1 October 2016 to
31 March 2017
Contribution in Practice Payment
for EA for
1 October 2016 to
31 March 2017
Up to 1,099 £300 £300
1,100 – 1,599 £2,673 £600
1,600 – 2,499 £3,742 £750
2,500 + 52.2p per item 6.6p per item 

From 1 August 2016 to 30 September 2016 practice payments were set out as in the table below:
 
Number of items
per month
Practice Payment for
1 August 2016 to
30 September 2016
Contribution in Practice Payment
for EA for
1 August 2016 to
30 September 2016
Up to 1,099 £100 £100
1,100 – 1,599 £748 £200
1,600 – 2,499 £1,047 £250
2,500 + 43.8p per item 6.6p per item

From 1 April 2016 to 31 July 2016 practice payments were set out as in the table below:
 
Number of items
per month
Practice Payment for
1 April 2016 to
31 July 2016
Contribution in Practice Payment
for EA for
1 April 2016 to
31 July 2016
Up to 1,099 £200 £200
1,100 – 1,599 £1,926 £400
1,600 – 2,499 £2,695 £500
2,500 + 56.4p per item 6.6p per item


For payments for up to 2499 items, your pharmacy does not receive the figure shown in the tables each month; you will receive a proportion of this depending on how many months are covered.
 
For the period 1 October 2016 to 31 March 2017, payment will be made at 1/6 of the amount in the table.

For the period 1 August 2016 to 30 September 2016, payment will be made at 1/2 of the amount in the table.

For the period 1 April 2016 to 31 July 2016, payment will be made at 1/4 of the amount in the table.

For payments for 2500 items or more, you will be paid the entire price per item. This will not be divided by the number of months in that period.
Your practice payment is also dependant upon your pharmacy’s staffing levels/ hours as declared on your FP34 submission document. In order to receive the full practice payment you must have declared the minimum dispensing staff levels for the relevant month as set out in the table below:
 
Number of items per month Minimum dispensing staff level
(Hours per week)
2,000 - 3,499 40 hours
3,500 - 4,999 56 hours
5,000 - 6,499 75 hours
6,500 - 7,999 94 hours
8,000 - 9,499 112 hours
9,500 - 10,999 131 hours
11,000* 150 hours


*Pharmacy Contractors will be required to employ a staff member for an extra 19 hours per week for each additional 1,500 items the pharmacy contractor dispensed per month above 11,000 items.

For any month where you have declared dispensing staff hours/levels lower than those set out in the table in above, the practice payment for the relevant month will be paid at the level that would be paid if the pharmacy only dispensed the number of items at the lowest level in the band that corresponds in the above table to its declared dispensing staff levels.
 
For example, a pharmacy contractor dispensing 7,000 prescription items a month who employs dispensing staff for only 75 hours per week, including a pharmacist, would receive the Practice Payment for 5,000 prescriptions items per month, that is, 5,000 x 52.2p = £2,610.

In addition, for any month where you have not declared any dispensing staff levels, your practice payment for the relevant month will be paid at the minimum level, that is, 1/6 of £300.

If you wish to query the number of items processed for a single month due to your payment dropping below a threshold, please submit the recheck form on our website, ticking the item count box and entering any relevant details in the additional information box. Click here to access the form.
 
Where total monthly payments in relation to prescriptions passed for pricing for the period April to March are less than the amount which would have been paid had the payment been calculated on the basis of the total of the relevant payments set out in the table above, you may make a claim for a top up payment to the NHSCB for England.

You should submit, by 30 November, copies of FP34 statements for the relevant period (April to March) as evidence of the total number of prescription items passed for pricing during this period.

The following restrictions will apply on this:
  • Where, in any month, practice payments were paid at a lower level because minimum dispensing staff levels were not met, those months shall be disregarded when calculating the amount of any top up payment which may be payable.
     
  • Where, in any month, practice payments were paid at a lower level because a pharmacy contractor did not declare dispensing staff levels, those months shall be disregarded when calculating the amount of any top up payment which may be payable, unless the pharmacy contractor can satisfy the NHSCB (NHS England) that their dispensing staff levels were sufficient in respect of the above table for the relevant month.
     
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