The “approximate” 17p-per-item reduction across all category M items from July reflects a reduction in manufacturers’ sales prices from January to March, the Pharmaceutical Services Negotiating Committee (PSNC) announced on Friday (June 29).

“The [drop] in July is…mostly associated with price concession lines and is not due to planned management of retained margin,” PSNC explained.

The 17p-per-item cut is on top of the ongoing category M clawback – which already represents an average drop of around 17-18p-per-item – which is due to end on July 31, PSNC confirmed to C+D this afternoon.

PSNC is continuning to work with the Department of Health and Social Care on the upcoming margins survey for 2017-18, PSNC said.

“At this point, it is unclear what will happen to the August drug tariff,” it stressed.

“Final straw for many pharmacies”

Reacting to the announcement on Twitter, Wicker Pharmacy chairman Martin Bennett said: “This is by far the worst financial situation I’ve seen since I started in community pharmacy in 1973.”

The “additional cashflow problems” that the 17p drop will bring “will be the final straw for many pharmacies”, Mr Bennett predicted.

2/2 The problem is that those making the decisions do not value the service. Standards will fall & patient safety will be compromised as we all struggle to survive. Time for the GPhC to make its voice heard. It is fast becoming a patient safety issue @TheGPhC

— Martin (@wickerpharm) 30 June 2018

Very worrying that the 17p per item pay cut has been imposed from today alongside the current 18p cut which is due to end this month. Why not just extend that for one month and avoid additional cash flow problems. Or is there more bad news?

— Martin (@wickerpharm) 1 July 2018

In my view DHSC would have been more prudent to wait for more firm data from the margins survey, but even then I have concerns about methodology.

— Mike Hewitson (@MikeHewitson1) 1 July 2018

Agree with you about the last 10 years - but you forgot to mention a shared and common agenda

— The MMP (@TheMMP1) 1 July 2018

it’s a joke.. we constantly hear The NHS telling patients to use their pharmacy... but the Treasury is pushing to sector to brink of collapse... Their aim is to have an Amazon model...

— marc brooks (@brunobrooks1) 1 July 2018

And even if this was not a problem the ludicrous quotas imposed on us by wholesalers makes the situation even worse. And Brexit has not even happened yet.

— I am not Andy! (@IamnotAndy1) 1 July 2018