Discounts for Part IX item - Swedish pharmacist eager for advice!

[Robin87]

I am a pharmacist working in Sweden and i ask here since Sweden is about to impose a similar legislation for reimbursement of appliances (Part IX) as in the UK with following reductions in price. My question relates to the urinary catheters since our pharmacy dispenses many such (Specialized pharmacy). How does it work with discounts from distributors? Is there any apart from the fees received "per prescription" that is received from the NHS?

Would be great to know about this since we are about to negotiate with manufacturers soon..

[bobbin]

I am a pharmacist working in Sweden and i ask here since Sweden is about to impose a similar legislation for reimbursement of appliances (Part IX) as in the UK with following reductions in price. My question relates to the urinary catheters since our pharmacy dispenses many such (Specialized pharmacy). How does it work with discounts from distributors? Is there any apart from the fees received "per prescription" that is received from the NHS?

Would be great to know about this since we are about to negotiate with manufacturers soon..

Most common surgicals are sold at about 11% discount off list price, but the NHS pays pharmacies the list price minus a clawback of up to 11.5% so we don't actually get to keep the discount.

[Robin87]

Thanks for the reply! However for rarely prescribed items that to a large extent are distributed directly to customer (e.g. catheters) is it the same discount? Sorry for my bad english!

[bobbin]

Thanks for the reply! However for rarely prescribed items that to a large extent are distributed directly to customer (e.g. catheters) is it the same discount? Sorry for my bad english!

In the UK, the majority of catheters are stocked by the national full-line wholesalers such as Phoenix, AAH and Alliance Healthcare. Most catheters are subject to the wholesaler's surgical discount terms and conditions. Only a minority of catheters are obtained as special orders direct from manufacturers, in which case they may be zero discount and have a carriage charge and possibly other surcharges.

[eagleuk]

Here some of big retail chains and surgeries pass their scripts to appliance contractore.In retail pharmacy we used to pass rare items/call back scripts to appliance contractors .They operate two schemes
1) fp10- here we send the script to appliance contractor like wardles and we get the product next day.This way we get good discount.
2) retail- we order the product and pay the cost at the end of each month.

In this scheme we don't end up with half open boxes /unused quantity as appl. contractor send exactly the quantity stated on the script.

[Robin87]

Ok, thanks for the advice! Is it common to order direct from manufacturer? How common is that compared to order through a DAC/Distributor?

What discount may you get on the items then?

[eagleuk]

Hi
I work only as an employee.So i don't know much about the correct discount figures.I know from our Am that surgery/gp generally get some money for just sending the script to appliance contractors who in turn post the product to patients.
In UK we can't claim for the whole pack if doctor has only prescribed 2 dressings out of a pack of 50.This causes a loss if the item/product is not a regular line .That's why some chemist prefer to use Appliance contractor under fp10 scheme to avoid the losses.

[bobbin]

When you use the FP10 agency scheme, there is no discount since you are not buying the stock. The goods are provided free of charge because you are sending the prescription to Wardles. You receive an agency fee from Wardles for each item on the prescription.

Wardles also act as a wholesaler if you wish to buy stock from them. You can buy full packs or splits. Some items are discounted but others are not. Provided that you pay within the appropriate time frame after receiving your statement , you will receive discount/rebate on certain items. I think it's usually about 12%. I believe that you receive the rebate/discount at the same time as they pay your agency fees.

Other dispensing appliance contractors are Ostomed and NWOS (North West Ostomy Supplies). NWOS are now part of the Alliance Boots empire. Some independent pharmacies use NWOS. They have a website which explains how they operate. Similar to Wardles really.

The majority of patients currently obtain their ostomy supplies direct from appliance contractors owned by appliance manufacturers. Pelican Healthcare is one, but there are quite a few. The offer a good service with home delivery. The surgery just has to post the prescription to the appliance contractor. The appliance contractor reorders the script when the patient requires.

[bobbin]

Ok, thanks for the advice! Is it common to order direct from manufacturer? How common is that compared to order through a DAC/Distributor?

What discount may you get on the items then?

Only rare items are ordered direct, usually the less common ostomy products. In most cases, the orders are placed on the pharmacy's behalf via their main wholesaler's special orders department, since pharmacies do not generally have accounts with appliance manufacturers.

There is usually a handling charge and a delivery charge, not discounts. In the case of ostomy products, these need to be claimed back from the NHS as out-of-pocket expenses.