£20m pharmacy cash injection small amid rising costs

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by Frankie Macpherson

Thursday 1st June 2023

Following Community Pharmacy Scotland’s rejection of the Scottish government’s funding package last week, Scotland’s community pharmacies are set to receive a short-term funding boost – however the organisation says this will not be enough to cover increased costs.

While an overall 2023/24 financial package for Scotland’s community pharmacies is yet to be reached, the body representing pharmacies says the government has presented an interim cash injection of £20m to ease pressures related to medicines price increases.

Community Pharmacy Scotland (CPS) raised the issue of medicines prices increase as a major concern in its statement rejecting the government’s offer – with some prescriptions running at costs above what the NHS can reimburse.

At an emergency meeting, the organisation called for the Scottish Drug Tariff, which sets levels of reimbursement for dispensed items, to be increased and for recognition of the ‘serious financial trouble’ facing pharmacies.

Now, CPS says it welcomes the extra £20m funding, reiterating that some CPS members are reporting ‘having to borrow to keep their doors open’ and ensure their local community’s healthcare needs are met.

However, while welcoming the news it says that £20m is not sufficient to cover increased costs of some of the most common medicines, with the cash injection representing just 1.74% of the annual medicine spend for Scotland.

CPS adds that the increase in costs of medicines alone extends well beyond the recent investment presented by the government: ‘We have had reports that costs have increased by over three times this amount.’

In the Scottish government’s recent Medium-Term Financial Strategy, it highlighted that the impacts of demographic changes and inflation are ‘particularly pronounced’ for health and social care.

The government cited the ageing population, pay negotiations and medicines costs as contributing to a decision to increase overall health and social care expenditure, stating:

‘For example, recent pressures relating to pay, drugs and medicine costs have exceeded previously modelled growth, and in contrast to other areas technological and scientific advances lead to increased rather than decreased costs as both expectations and demand grow.’

As the £20m will only go part way to supporting the medicines spend for Scotland’s community pharmacies, CPS says negotiations with government must continue. The body adds that ‘a much improved offer must be forthcoming’ from government to ensure current service levels and access to healthcare are maintained.

Its previous statement highlighted the NHS Pharmacy First project launched in July 2020 to enable pharmacists to consult on certain conditions and prescribe appropriately has helped to ease pressure on GP services.

However, with a lack of funding to cover medicines, running and staff costs, CPS says it is concerned that the project’s expansion will be halted.

Meanwhile, Christine Grahame MSP has written a parliamentary question asking the First Minister to respond to reports that the CPS Board has described the financial settlement offered as “derisory”. An answer is expected to be given in chamber today.

healthandcare.scot has invited Scottish government to comment on CPS’s rejection of its financial package.

Read more: A pharmacist on the frontline; Community Pharmacy rejects funding deal; Briefing: Cabinet Secretary plans for health and careRedefining clinical meaningfulness;

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