Proposed Dispensing Feescales for GMS Contractors, England and Wales - 2016, October release

In order to introduce new dispensing feescales from 1 October 2016 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 2016/17 is 178.2 million. This is calculated by taking the 2015/16 envelope (176.1 million) and adjusting this figure for any over/underspend in 2015/16 and uplifting the cost element and profit element.
• The average volume increase of fees is 0.54 per cent. This is the average annual percentage increase in volume of fees over the last 2 years. This is used to adjust for the forecast volume in dispensing fees.
• The proposed feescales to be implemented from 1 October 2016 which will deliver the envelope for 2016/17, are detailed in the ‘Proposed New Feescales’ section of the paper.
  • The average volume increase of 0.54 per cent is applied to each existing banding to calculate new bandings in the proposed feescale.
  • An adjustment factor of 1.091 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 2016/17.

The methodology used in calculating the feescales follows that agreed between the BMA General Practitioners Committee, NHS Employers, the Department of Health in England and the Welsh Government.

The methodology was agreed in March 2012. The Technical Steering Committee has agreed the calculated figures for 2016/17.