Business performance case study
A new NPA resource illustrates the impact the funding cuts in England might have on two different community pharmacies (A and B). Below is an extract from the case study of Pharmacy B
The nearest pharmacy to Pharmacy B is situated 1.1 miles away. Pharmacy B dispenses 10,000 itemsÂ a month on average, and provides three Advanced Services â€“ Medicines Use Review, New Medicine Service andÂ the Seasonal Flu Vaccination Service. Pharmacy B also runs a private travel clinic and a smoking cessation service.
How will the funding changes affect Pharmacy Bâ€™s income from providing NHS Essential Services?
Based on the Indicative Income tables published by Pharmaceutical Services Negotiating Committee, Pharmacy Bâ€™s income will faceÂ a reduction of nearly Â£3,700 per month from December 2016, compared with November 2016. While the monthly amount received is expected to rise from April 2017, this will still be around Â£3,000 less than the payment for November 2016.
What can Pharmacy B do to increase its income, beyond the Quality Payments Scheme?
There are numerous steps that the pharmacy team can take to improve the business performance and income of Pharmacy B:
- Drug Tariff â€“ make sure that all prescriptions are endorsedÂ and submitted correctly to ensure all income is received fromÂ providing NHS Essential Services
- Staff â€“ assess the knowledge and skill of the team, identifyÂ areas for improvement and develop training plans for eachÂ individual
- Process efficiencies â€“ review standard operating procedures inÂ the pharmacy to check they are efficient, and safe
- Reducing costs â€“ choose the right supplier for expert helpÂ and consider an NPA-recommended business partner
- Growing the business â€“ analyse the businessâ€™s currentÂ performance, using tools such as SWOT analysis and gapÂ analysis
- Other NHS services â€“ maximise delivery of MUR, NMS andÂ Seasonal Flu Vaccination services
- Other private services â€“ carry out market research to helpÂ identify whether there is a demand for other services
- Donâ€™t pay twice â€“ NPA members receive HR, employmentÂ law, Health & Safety, PR and pharmacy practice advice within the membership fee; so contact the NPA first.
For a more detailed analysis of options for Pharmacy B, download the full case study at npa.co.uk/services/pharmacy-imposition.