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Average pharmacy will lose £19k over 10 months

Umesh Modi: The loss of income will lead to a tough time for small independents in particular

Pharmacy accountant Umesh Modi predicts the average business will see a "significant loss of income" between June 2016 and March 2017


The average pharmacy in England stands to lose £19,000 over 10 months as a result of funding cuts and a recently announced category M clawback, an accountant has warned.

Umesh Modi, a partner at Silver Levene, predicted that the average pharmacy will see a “significant loss of income” to the tune of around £1,900 per month between June 2016 and March 2017.

The £19,000 total loss will consist of more than £4,000 due to the Department of Health’s plans to reduce category M payments between June and September, and a further £15,000 between October 2016 and March 2017, when the government plans to implement a £170m cut to pharmacy funding in England, he told C+D yesterday (May 16).

"A tough time"

Small independent pharmacies in particular will have a "tough time" over the coming months and may struggle to stay afloat, Mr Modi warned.

However, contractors should avoid making redundancies because most pharmacies already run on “skeleton staff”. Staff losses could reduce their ability to provide a full range of services, he stressed.

Mr Modi advised pharmacists to focus on the “bigger picture” and try to increase their revenue to prepare themselves for the loss of income.

Pharmacists should ensure they reach quotas for medicines use reviews (MURs) and the new medicine service (NMS) payments as well as seasonal services such as travel vaccines, to mitigate the drop in funding, he suggested.

Read C+D's breakdown of the category M clawback here


How will your pharmacy survive a £19,000 loss of income?

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Dave Downham, Manager

That's one for Pfizer to answer.

M Elnemy, Non healthcare professional

phenytoin caps 100mg NHS PRICE £62.50   I BUY FOR £4.75...balkeet u been taken for a ride...

Dave Downham, Manager

Again with the average pharmacy - what is an average pharmacy???!!???

M Elnemy, Non healthcare professional

IF THINGS ARE SOOOOOOOOOOOOOOOOOOO BAD..why are there ppl wanting to become contractors? why are contractors not selling ???????  More scare stories..FIBBING lol

Das Bhambra, Community pharmacist

Idiot! You are giving people false hope! Christie's has had a surge of pharmacies come on to the market! Told you before state the whole facts before you make a statement which is utter b******s

M Elnemy, Non healthcare professional

Listen seem rattled...things have never been better For us contractors......


still good  money to be made from pharmacy/selling nappies 

and there's plenty waiting to join the gravy train that's called

pharmacy ownership...

Das Bhambra, Community pharmacist

Nope not rattled by idiots! But if want to state profits on drugs then please also advertise the full facts. Everytime you dispense a GSK line you make a loss due to the clawback of brand products! This is the same for all branded lines apart from stated in the drug tariff as discount not given. Let us consider the case for Allevyn Gentle Border:

Only available from alliance at £21.90 a box minus 9% clawback means Nhs reimbursement of £19.93 plus 90p dispensing fee equals £20.82 making a loss of £1.07 each box!

Seretide 500 accuhaler £40.92 minus 9% clawback, NHS reimbursement £37.23 plus dispensing fee of 90p equals £38.14 making net loss of £2.78 per accuhaler

pregabalin does make a profit for now! DoH is well aware! It's called gross income not net profit! This is what we pay everything from and I mean everything. 

Pharmacy has not had a pay increase in real terms full stop! That is the issue. You and all other locums do deserve a pay increase and my staff because its a lot of work that goes into it. however when funding is being cut how is that supposed to happen.  Scotland has had a pay increase so surely Elnemeji they are even more richer than english contractors!!! I wish all pharmacists owned there own just like the good ol' days and there was no multiples to destroy the profession. Your arguement should be against those who allowed this to happen. Not the same old hard done by locum speech everytime. I was a locum for 4 years and agree some contractors are stuck in their old ways, but we also enjoyed £30plus per hour plus travel time and mileage. Those days are long gone. Your £35 per hour on saturday is for 4 hours as 9 til 1pm! You are misleading the young pharmacists with hope that there will be a fruitful future. Which is simply untrue; get out now if you can! Those are the FACTS to the whole story! 

Philip Caton, Community pharmacist

Could not agree more, what I don't understand is why the whole sector hasn't been screaming about this for years. Is it because the big boys get a different discount.....wouln't that explain a lot. Meanwhile independents are fobbed off with platitudes about taking the whole sttelement in the round. Well that's being taken away so they can't hav it both ways. I plan to send Jeremy Hunt and invoice for the last ten years losses due to DTP...about £50k.... with the line "it would appear we have had more discount taken off us than is due so we'd like it back." What if everybody did that? might give him something to think about!

M Elnemy, Non healthcare professional

Wrong wrong wrong

i was told by the manager that locums are too scared to ask for extra money as they feel their bookings will be at risk. It's actually a 10 hr shift with FUEL ......simple 

plz sir can I have some more 

Angela Channing, Community pharmacist

Could you tell us please, in what area of the country, and is that regular work, and via an agency or direct? I really find 35 an hr, hard to believe these days!? Also, who pays petrol these days? 

M Elnemy, Non healthcare professional

Hi angela

if I tell u the area locums will just flood the area and work for the standard's not rocket science 

Jimmy Desai, Pharmacy

Pointless discussing Pharmacy issues with Elnemy as it seems he lives and works in cukooland....

Das Bhambra, Community pharmacist

Interestingly a supposedly your a rich contractor that Locums!! And also doesn't help his fellow pharmacists! What makes you any different to the contractors that you complain about! Hypocrite!

M Elnemy, Non healthcare professional

Bra it's upto each individual to negioatate their own rates across the country rather than me telling them the names of locations where there is a shortage . 

M Elnemy, Non healthcare professional


Kassim K, Community pharmacist

The arrogance that you have to publicly mock someone in a manner that is absolutely inappropriate is unbelievable and brings the profession in disrepute.

M Elnemy, Non healthcare professional

I heard all this crap 5 years ago....nothing's changed 

M Elnemy, Non healthcare professional

Dear me Rx


diazepam 5 mg tds 84


collect at your local pharmacy 

M Elnemy, Non healthcare professional

I can promise you one thing.....the cuts are covered by wholesalers who have reduced their prices on 100s of lines...  ITS STILL BOOM TIME FOR US CONTRACTORS.........

Hospital Pharmacist, Hospital pharmacist

I really fail to understand you... you're a contractor, who locums on the side but also has a side businesses of property management... that is called struggling!! A good well paid job has a healthy work life balance...

M Elnemy, Non healthcare professional

hi.....i only work when i get the rates i want...i dont work for £23 per hr...emergency rates start from £35 per hr

Kassim K, Community pharmacist

The reduced pricing we may receive from wholesalers is a fraction of the reduction in cat M. It's simple mathematics - a reduction of 10% from the DT price is far greater than a 10% reduction on penny lines. 

M Elnemy, Non healthcare professional

kassim....if you are not happy with the funding, why dont u sell up? and try and find a profession as lucrative as pharmacy ownership and then us all know....

Kassim K, Community pharmacist

I assume that such a reactionary and childlike response is an endorsement to the fact that you now realise that small percentages applied to large values can yield a greater number than when applying larger percentages to smaller numbers. For a moment then I thought we had a pharmacist that did not understand basic maths but it's just one who lacks communicative skills. Just a quick reminder of your original comment..."I can promise you one thing.....the cuts are covered by wholesalers who have reduced their prices" - maths has shown this to be undeniably incorrect but I am sure you will muster up the strength to find a response that has no relevance.

Simon MEDLEY, Community pharmacist

so those will be the massive reductions that will be picked up by the next discount enquiry and result in further  Cat M clawbacks. Or has one of us missed something ?


M Elnemy, Non healthcare professional

Christies is a phone call away, dear me..........

Ghengis Pharm, Locum pharmacist

<sigh> Can someone take this person's keyboard away or just shut their fingers in a piano ...

Bal Singh, Locum pharmacist

Have they really? Massive reductions you say?

Please, show me who and where. You seem very informed for a non contactor on the business practise of the wholesalers.

M Elnemy, Non healthcare professional

a locum sticking up for contractors..........reminds me of an episode of only fools and horses where grandad says " you need to be careful son, you done so much boot licking you will go down with cherry blosom poisioning... 

Susan M Shepherd, Community pharmacist

duplicate post



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