Dispensing - Zero discount lists

The DoH simplifies the zero-discount lists

The Department of Health has announced changes to the Zero Discount arrangements for reimbursing NHS dispesning contractors. Changes will be implemented in two stages:

Stage 1:

From May 1, new criteria will apply for the addition of products to the ZD lists, replacing those which are used currently. Under the new criteria, products will only be added if requested by PSNC and where one or more of the following criteria apply:

Schedule 2 and 3 Controlled drugs.
Hazchem, cytotoxic or cytostatic items.
Cold-chain storage items.
Products where all three of the following apply:

(i) the manufacturer, AAH and UniChem do not offer pharmacy contractors a discount;
(ii) fewer than 500,000 items per year are dispensed of the product;
(iii) average net ingredient cost per item is more than £50.

At this time, this change will affect only additions to the lists. All products currently featuring on both ZD lists will remain until the second stage of this change is implemented.

Stage 2:

Likely to be implemented around September 2006, subject to confirmation, all products not meeting these new criteria will be removed from the lists. The lists will be combined to become one list and will be entitled Drugs for which discount is not deducted.

Discount will be removed from products no longer on the list. However, a corresponding downward adjustment will be made to the discount deduction scale to take account of the fact that contractors may not be receiving discount from their suppliers for these drugs. On average, the changes are to be cost neutral to contractors and the NHS, according to the DH.

Once stage 2 has been completed, contractors will no longer need to endorse that discount has not been obtained on listed products, other than in the case of products obtained from specials manufacturers. Where discount is not obtained from special manufactures, contractors will need to endorse ‘DNG’ for ‘discount not given’.

[Ed: How is it that all the might and "power" of the two dispensing doctor representative groups (yes, that does include the DDA Ltd) have failed - or not bothered trying - to achieve a ZD list for their colleagues?]

(28/4/06)