Dear Contractor, |
SPPG issued a letter on 15th January 2024 providing details of the Phased Introduction of Revised Discounting Arrangements that DoH(NI) will apply to prescriptions dispensed from January 2024. |
In summary:
- the following clawback rates will be introduced:
- Discount Scale 1: Generic medicines (excluding those granted a concessionary price) – 18.48%
- Discount Scale 2: Appliances – 10.39%
- Discount Scale 3: Branded medicines (plus those medicines granted a concessionary price, for the month in which the concessionary price applies) – 5.27%
- DoH(NI) will use a phased approach to introduce the new clawback arrangements using both the new rates (referred to above) and the existing clawback arrangements on qualifying medicines and appliances, with the total clawback being calculated and deducted by BSO according to the following ratios:
- Jan-Mar’24: 15% using the New rates and 85% using the Existing clawback arrangements.
- Apr-June’24: 30% New and 70% Existing.
- July-Sept’24: 50% New and 50% Existing.
- Oct-Dec’24: 70% New and 30% Existing.
- Jan-Mar’25: 85% New and 15% Existing.
- April’25 onwards: 100% New and 0% Existing.
This phased approach will be applied to prescriptions dispensed from January 2024 onwards. Under the new arrangements the total amount that will be deducted for each pharmacy will change, by varying amounts, with some pharmacies seeing an increase in the amount deducted and others seeing a reduction.
At this stage you will not have the relevant drug and appliances spend data associated with your pharmacy(-ies) to calculate the impact of the changes should you need to do this for business planning purposes. If you require this, then CPNI recommends that you contact either SPPG or BSO and ask that they retrospectively re-model the discount that was deducted for the pharmacy(-ies) you operated in the 18-month period from June 2022 – November 2023 according to the new clawback rates and the phased approach outlined above. This will enable you to see the impact had the new arrangements been applied during that period and it will provide you with an indicative trend for the clawback going forward.
SPPG acknowledges that CPNI remains opposed to the new discount clawback arrangements within the context of the current level of funding and Drug Tariff arrangements applicable to community pharmacy service provision in Northern Ireland. There are numerous reasons for CPNI’s opposition to the new clawback arrangements and these include the recent announcement in Scotland that the clawback being applied to qualifying branded medicines has been reduced to 1.79%, from December 2023, with the clawback on qualifying generic medicines remaining at 0%.
CPNI appreciates that the information contained within the SPPG letter, as presented, is complex and accordingly further information and clarification will be provided on this and other funding and contractual aspects at a contractor meeting to be arranged in the coming weeks.
Yours sincerely,

GERARD GREENE
Chief Executive