2014 PPRS – An Overview
The Department of Health has stated:
“The new scheme will provide assurance on almost all of the branded medicines bill for the NHS. The bill will stay flat over the next two years and will grow slowly after that. The industry will make payments to the Department of Health if NHS spending on branded medicines exceeds the allowed growth rate.”
You can view the document in full here.
Why have PPRS
• Provide stability and predictability to Government and industry.
• Support the NHS by ensuring that the branded medicines bill stays within affordable limits.
• Improve access to innovative medicines commensurate to outcomes they offer
patients by ensuring that medicines approved by NICE are available widely in
the NHS.
• Reduce bureaucracy and duplication.
• Support the Government’s growth and innovation agenda for life sciences.
What PNSC has said?
Pharmacy contractors will not face the problems caused in the past by price cuts taking effect on 1 January, which led PSNC to negotiate a price concession for January in previous years. However we will need to consider the scheme’s impact carefully, and look specifically at the elements of greatest concern to contractors, including price modulation and the likely impact on pharmacies’ ability to obtain medicines they need for patients swiftly and without punitive financial terms.
What’s in it for the NHS?
The purpose of the scheme is to provide Government with surety on the level of NHS expenditure on all branded medicines supplied by companies.
What does it mean for companies?
- The new scheme will run for five years starting from 1 January 2014
- Companies with sales of less than £5 million in the previous calendar year will not be required to make payments to the Department.
- The PPRS payment will be paid in quarterly instalments in cash by individual companies in arrears on submission of quarterly sales returns
- Any adjustments to PPRS payment percentages for future years will be set in advance of the year concerned and communicated in quarter four of the previous year
So …What does PPRS mean for your business? What are your plans for the future? Pharmacy Consulting can help.
Call 01252 302 342 to speak with one of our consultants about your innovative plans or about the future of pharmacy.