The Department of Health (DH) has confirmed that it is "in discussions with PSNC" about improving the pricing mechanism covering short-term price fluctuations, following criticism of the NCSO endorsement system.

Last week PSNC and Asda's commercial manager Faisal Tuddy both voiced concerns about delayed NCSO announcements and the "burdensome" administration involved in the system.

A DH spokesperson said the department "recognised" pharmacists' concerns regarding the arrangements and was working with PSNC to improve the pricing mechanism.

They added: "However, a balance has to be struck between administration for pharmacy staff and the NHS not paying more than needed for medicines."

Following complaints that delays in announcing NCSO concessions each month left contractors having to sort back through prescriptions to ensure they were endorsed correctly, the department reminded contractors that they could endorse in advance of products being granted concessions.

Where a contractor had experienced an increased price obtaining a medicine, the endorsement should include the full details of the product dispensed and the NSCO endorsement, as well as being signed and dated on behalf of the contractor.

If the NCSO concession was then not granted, the contractor would then be paid in line with the Drug Tariff Part VIII price, the department said.