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Category M clawbacks to fall 60% but still 'painful'

The average pharmacy will lose £466 this quarter on generic purchase profits, down from £1,200 last quarter, but leading accountant Umesh Modi has warned it will bring little relief to cash-strapped pharmacists

Category M clawbacks are set to fall by 60 per cent this quarter, but they will be "nonetheless painful" for contractors struggling to maintain cash flow, experts have warned.

The average pharmacy will lose £466 on generic purchase profits this quarter, down from a loss of £1,200 last quarter, generics manufacturer Actavis has estimated.

But Umesh Modi, pharmacy accountant at Silver Levene, said the decrease would bring little relief to cash-strapped pharmacists.

Pharmacy accountant Umesh Modi says the lower clawbacks this quarter will bring little relief

More on category M

Pharmacy owners voice contract fears

Q4 2013: Category M Barometer

Monthly £700 cat M clawbacks will undermine confidence in pharmacy businesses

"This is, of course, a lot better than the clawback in the preceding year but nonetheless painful, especially as other costs are on the rise," he told C+D.

Mr Modi said cashflow was "getting tight" for many contractors, who were battling against decreasing turnover and income from services. This month's tax bills and ongoing pressure to ensure pharmacies meet the new General Pharmaceutical Council standards would only exacerbate the problem, he warned.

"I remain cautious for 2014 unless the cost of service inquiry is concluded quickly and better funding is agreed," Mr Modi said.

Numark managing director John D'Arcy agreed there were wider issues affecting the sector's finances. He stressed that red tape and increasing costs had left some contractors feeling the strain.

"It's really just trying to keep your head above water in a very challenging, competitive and tough environment," Mr D'Arcy told C+D.

Will category M clawbacks dropping by 60 per cent help you?

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Nadeem Shah, Superintendent

No need to keep waiting for funding by local or national bodies - start you own private services. The days of relying on the purchase margins are long gone, before we get our hands on the margins the DH and the NHS will take that away. Raising your voice is good but moaning about it does not get anything.

Bindu Bhatt, Superintendent Pharmacist

I think the complaints should be directed at PSNC. They are the ones who have failed to negotiate a decent contract and remuneration. Too interested in palling up to the Government Negotiators and obtaining meaningless Honors for themselves. Their attitude is I am alright Jack!! We will continue to increase the PSNC levy and reward ourselves, whilst you Pleb Contractors will Pay up and Shut up, even as your income falls.


Bhatty....If you don't like the funding, sell up or shut up!!!

Paul badham, Community pharmacist

Should see the gpc work at first hand,maybe change your mind then!

Paul badham, Community pharmacist

Pharmacy has been dying in the water for years.All you pharmacy graduate,retrain as plumbers,for a decent income,hours of work,and job satisfaction.Dont rely on the pharmacy bodies,especially the GPC!,they are the biggest load of head in sand,fiddling while pharmacy burns,load of tossers there are


A bit harsh on the GPC but I can see where you are coming from

Paul badham, Community pharmacist

Cost of service inquiry,won't do anything to increase funding.pharmacists wages have been slashed,the inquiry will say and rightly so that the global sum should reduced


But Umesh Modi, pharmacy accountant at Silver Levene, said the decrease would bring little relief to cash-strapped pharmacists

LOL.. I think you mean cash strapped Contractors if there is such a thing - Not all pharmacists are contractors...

Er Ds, Superintendent

del- if u not happy then sell up or shut up. worse at moaning than the wife!!


del- if u not happy then sell up or shut up. worse at moaning than the wife!!

Count yourself lucky - Some pharmacists have two wives :-(


Agree with the first part of your statement....

More than happy. Hope you are too.


Mr Modi

Does that mean you will lower the price you charge Pharmacies to carry out their annual accounts?

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