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James Waldron: The dubious claims about hub-and-spoke

"The real-term benefits are still so intangible"

The figures on the controversial dispensing model don't stand up to scrutiny, says C+D's editor

In January, I wrote that the government should think twice before making wrong-footed predictions about the potential of hub-and-spoke dispensing to save the sector.

Three months on, and the Department of Health (DH) is not only consulting the sector on its vision for a hub-and-spoke future, but making dubious claims about how much this could save independent contractors.

You could view this as the government finally putting its money where its mouth is, except it is presumably relying on pharmacists to foot the bill themselves. The DH puts the price tag for a standard dispensing hub at a bank account-busting £5 million. Admittedly, this works out at a more manageable £20,000 for each of the 250 pharmacies it expects such a facility to serve.

But this model relies on a contractor persuading 249 other branches to come on board, something that may be hard to do while the real-term benefits are still so intangible.The government argues that the increased use of this model will help contractors make savings on their pharmacist and technician staff costs (10% and 25% respectively).

But even this doesn’t stand up to scrutiny. In fact, the DH admits that its predictions are based on a “high estimate” that 60% of prescriptions can be dispensed through this system, while its “central estimate” is a more conservative 45%.

The NPA’s Mike Hewitson has branded the figures “laughable”, while the Royal Pharmaceutical Society’s Sandra Gidley has raised valid queries about who will ultimately be responsible for accuracy checking. It will be interesting to see whether the government addresses these issues by the end of its consultation process. Make sure to submit your thoughts via bit.ly/HubViews before May 17.

C+D Awards 2016 – shortlist

While the future of hub-and-spoke remains murky, one thing that can be relied upon is the quality of entries to the C+D Awards. Our panel of hand-picked judges (including last year’s winners) have managed to select 91 finalists to make it through to the final stage. It’s great to see some of last year’s winners back in the running alongside an array of fresh faces, and I can’t wait to see who is going to collect a trophy at the ceremony on June 15. With tickets on sale (at discounted prices until April 15) at chemistanddruggist.co.uk/awards, I hope to see you there.
 

James Waldron is editor of C+D. Email him at [email protected] or contact him on Twitter at @CandDJamesW
 


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4 Comments

Harry Tolly, Pharmacist

The DH puts the price tag for a standard dispensing hub at a bank account-busting £5 million. Admittedly, this works out at a more manageable £200,000 for each of the 250 pharmacies it expects such a facility to serve.

 

£20,000 actually.

 

Looks like basic maths is not the strongpoint for Mr Waldron  .... just as it seems not to be for the luddites at the PSNC who are hell bent on preserving a Global Sum distribution in favour of the multiples.

James Waldron, Editorial

Dear Mr Tolly,

The article was meant to state £20,000, but the extra zero was a typo on my part. Thanks for spotting this and I will now amend the figure.

Regards,
James Waldron, C+D editor

Harry Tolly, Pharmacist

Dear Mr Waldron,

 

Thanks for the amendment. As editor, and for an in depth story with some beef, have you considered asking the PSNC and the DoH  :

 

1/ Why the Global Sum distribution is skewed towards multiples ?

2/ Why the models of renumeration are not being shared with the WHOLE profession?

3/ Why the DoH conducts "negotiations" in secret with a total lack of transparency and with zero engagement with the WHOLE profession ?

 

I think these meaty questions deserve answers, and it seems that the DoH and PSNC want to stitch up a deal that is NOT in the public interest nor of the profession.

What have they got to hide ???

Kind regards

 

Harry.

Philip Caton, Community pharmacist

Very well put Mr Waldon. Have you thought of running the PSNC?? I like your logic.

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