Devolution of the pharmacy global sum

29 March 2010

Information for PCTs on the funding of pharmaceutical services

This document has been produced for PCTs to assist them in understanding the implications of the devolution of the global sum for pharmaceutical services.  It will be of particular interest to staff involved in the commissioning and contracting of pharmaceutical services and primary care finance leads.  It is an interim document as further information is due out soon on the implications to hospitals.  The final version will be released in April 2010.

15 March 2010

Calculation of global sum allocations

Following requests from PCTs DH has released a briefing and spreadsheet to show how the global sum allocations for 2010/11 have been calculated.  Any questions on these should be directed to NHS PCC’s pharmacy helpdesk.


NHS pharmaceutical services - transfer of the global sum to PCT allocations

Bob Alexander has written to PCT chief executives drawing their attention to important considerations in managing funding for NHS services provided by community pharmacies and appliance contractors, following devolvement of the centrally held funding to PCTs from 1 April 2010.  The letter can be found here.  

Devolution of the pharmacy global sum

The Operating Framework for 2010/11 confirmed that the Department of Health (DH) will be devolving the central budgets for the pharmacy global sum to PCTs from April 2010.  The funding will be allocated separately in 2010/11 but will become part of PCT baselines from 2011/12.  PCTs were notified on 6 January 2010 of their allocation via Allocation Working Paper AWP (10-11)PCT 01.

To support PCTs in understanding the implications of the global sum being devolved, NHS PCC organized five events in January and February 2010 on behalf of DH.  Presentations from these events can be found here.  As a result of requests from PCTs the first presentation at the events explained the current ie pre April 2010 funding arrangements for the community pharmacy contractual framework.  This provided PCTs with a good understanding of the current arrangements and put the changes into context

NHS PCC will continue to support PCTs in the devolution of the global sum and the questions asked at the five events are being transcribed and will be added to the pharmacy knowledgebase which is available to subscribing PCTs through the NHS PCC website (log in required).  In addition DH is producing a ready reckoner and guidance for PCTs and these will be available shortly.

NHS Prescription Services will continue to process prescriptions and claims submitted by pharmacy and appliance contractors and will provide information to PCTs on these payments.  A new remuneration report will be produced for PCTs and further information on this can be found at http://www.nhsbsa.nhs.uk/PrescriptionServices/3011.aspx.  This new report will be available to PCTs from July 2010.

In addition to the global sum being devolved to PCTs the way that service costs are recharged to PCTs will also change from April 2010.  This issue will also be covered by the guidance that is due out shortly.