New Dispensing Fee Scale for Dispensing Doctors

A new dispensing fee scale came into effect on 1st April 2006.

The new 'fee per item' scale replaces the following three elements of the existing remuneration mechanism:

• fee per item (based on the number of items dispensed by each practitioner)
• on-cost (based on the cost of the drug dispensed)
• container allowance.

The new fee scale was proposed by the General Practitioners Committee (GPC) with direct input from the Dispensing Doctors' Association (DDA) and has been agreed with NHS Employers and the Department of Health. It was agreed as part of stage 1 of the review of the GMS contract.

The new scale reflects the need to break the link between drug costs and remuneration for dispensing doctors.

There has been no reduction in funding for dispensing services remuneration and in particular the funding for the on-cost allowance has been incorporated fully into the new fee scale.

A balancing mechanism will ensure that overall the total cost of the new fee scale will be no greater and no less than the funding allocated for this year.

The negotiators are also developing a new Dispensary Quality Scheme which will closer align the services that patients can expect to receive from dispensing doctors to those that patients in other areas receive from community pharmacies. A maximum of £8 million will be made available to practices and paid on a capitation basis subject to achievement of the minimum standards and additional services to be set out in the Scheme. More information about the Scheme will be published shortly.

The new fee scale will be reviewed during the coming financial year in light of a full review of dispensing income by the Technical Steering Committee.