Falling dispensing practice profits to be discussed by GPC and NHS Employers

The GPC is to enter talks with NHS Employers over the falling profits of GP dispensing practices.

Dr Bailey: the GPC dispensing committee will meet NHS Employers next month in order to ‘address the issue of falling profits for dispensing doctors’.
Dr Bailey: the GPC dispensing committee will meet NHS Employers next month in order to ‘address the issue of falling profits for dispensing doctors’.

In a report due to be published on Friday, it will be revealed that the profits of dispensing doctors are ‘not unreasonable’, Dr David Bailey, lead negotiator on dispensing for GPC, has said.

The Dispensing GP Practices Cost Of Service Inquiry is expected to show that the profits of GP dispensing practices are around 7% of turnover.

The report is also thought to show that many small dispensing practices are dispensing at a loss.

However, the inquiry was completed in the middle of last year, and based on end of year figures for 2009. Therefore it is ‘significantly out of date already’, Dr Bailey said.

‘The direction of profits is clearly reducing. I think things have got worse since [2009],’ Dr Bailey said.

Dr Bailey said that the GPC dispensing committee was due to meet NHS Employers next month in order to ‘address the issue of falling profits for dispensing doctors’.

The GPC hopes to discuss a number of issues with NHS Employers that are ‘significantly pressurising practices’.

These will include the tougher economic climate, the reduction in wholesaler competition, and category M drugs, Dr Bailey said.

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