Drug price concessions hit record high for third consecutive month

The number of medicine price concessions has risen to a new record high for the third month in a row, the pharmacy negotiator has confirmed.

Community Pharmacy England (CPE) said 230 price concessions were granted in May, making procuring medicines an ‘ever more complex and time-consuming’ job.

It is the third month this year that more than 200 concessions have been granted, with the Department of Health and Social Care (DHSC) granting 204 in April, and 201 in March.

Related Article: Exclusive: CPE pushes for new service caps to avoid ‘over commissioning’ draining the contract sum

CPE said this concerning trend is putting more pressure on pharmacy owners and their staff.

A CPE spokesperson added: ‘We are very concerned about this milestone, and about the impact that instability in the medicines supply market is having on community pharmacies – from both workload and financial perspectives.

‘CPE is continuing to push for fair medicines pricing to support pharmacy owners in the short-term: community pharmacies must be able to source medicines quickly, and they must not be expected to make financial losses when supplying them.

‘We continue to press government for wider solutions to the ongoing volatility in the supply chain to protect pharmacies from further financial shocks, and patients from further disruption.’

Related Article: Pharmacists concerned they will see ‘very little’ of contract funding boost

The negotiator reminded pharmacy teams to make use of several tools and resources to support them in managing medicines supply issues, including:

• The Medicines Supply Tool on the Specialist Pharmacy Service (SPS) website, which has the latest information on supply issues, actions to take, alternatives to use and expected resolution dates;
• The Shortages Reporting Form where pharmacists can report drug shortages to CPE for further investigation; and
• The Medicines Supply Resources page, which provides a number of patient-facing materials to help explain why certain medications may be unavailable and manage expectations during shortages.

Rising drug costs have recently sparked warnings that pharmacies are 'being forced to subsidise the NHS out of their own pockets'.

The Independent Pharmacies Association (IPA) has written to pharmacy minister Stephen Kinnock calling for 'urgent clarity' on what legal basis the government thinks it is lawful to require pharmacies to dispense medicines at a loss under NHS contractual arrangements.

Related Article: Expansion of Pharmacy First a ‘key step’ in delivering preventative care

And a number of contractors have told The Pharmacist that ‘skyrocketing’ drug prices are leaving them with an impossible choice between dispensing at a loss or letting a patient go without their vital medications.

At a press briefing on the new pharmacy contract this week, CPE said it would begin a programme of reform ‘very shortly’ which will assess how the current medicines reimbursement system needs to change.