In order to introduce new dispensing feescales from 1 October 2019 on the existing doctor-based banding basis, the following have been calculated, based on formulae determined by negotiating parties.
The figures are calculated using data for England and it is anticipated that they will also be accepted for use in Wales:
- The dispensing envelope for 2019/20 is 180.96 million. This is calculated by taking the 2018/19 envelope (180.98 million) and adjusting this figure for any over/underspend in 2018/19 and uplifting the cost element and profit element.
- The average volume change of fees is 0.031 per cent. This is the average annual percentage change in the volume of fees over the last two years. This is used to adjust for the forecast volume in dispensing fees.
- The proposed feescales to be implemented from 1 October 2019 which will deliver the envelope for 2019/20, are detailed in the Proposed New Feescales section.
- The average volume change of 0.031 per cent is applied to each existing banding to calculate new bandings in the proposed feescale.
- An adjustment factor of 0.805 is applied to each pence value at each banding to get a new value in the proposed feescale. This adjustment factor is applied so that the new fees will deliver the remaining envelope for 2019/20.
The methodology used in calculating the feescales follows that agreed between the BMA General Practitioners Committee, NHS Employers, the Department of Health and Social Care in England and the Welsh Government.
The methodology was agreed in March 2012 and includes a trigger for a review in the event of an over or underspend exceeding 3% for two consecutive years. This review would require the methodology to be suspended and submitted for renegotiation.
The underspend in 2017/18 of -3.03% and the overspend in 2018/19 of 4.23% was felt by the Technical Steering Committee not to meet the criteria required for a review of the methodology as the committee felt that the criteria should be interpreted as relating to an overspend for two consecutive years or and underspend for two consecutive years rather than a combination of over and underspend.
As a result of this decision, the Technical Steering Committee has determined that the existing methodology should be implemented for 2019/20.
The Technical Steering Committee has agreed the calculated figures for 2019/20.