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Business performance case study

NPA Essential

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 items a month on average, and provides three Advanced Services – Medicines Use Review, New Medicine Service and 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 B’s income from providing NHS Essential Services?

Based on the Indicative Income tables published by Pharmaceutical Services Negotiating Committee, Pharmacy B’s income will face a reduction of nearly £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 £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 – make sure that all prescriptions are endorsed and submitted correctly to ensure all income is received from providing NHS Essential Services
  • Staff – assess the knowledge and skill of the team, identify areas for improvement and develop training plans for each individual
  • Process efficiencies – review standard operating procedures in the pharmacy to check they are efficient, and safe
  • Reducing costs – choose the right supplier for expert help and consider an NPA-recommended business partner
  • Growing the business – analyse the business’s current performance, using tools such as SWOT analysis and gap analysis
  • Other NHS services – maximise delivery of MUR, NMS and Seasonal Flu Vaccination services
  • Other private services – carry out market research to help identify whether there is a demand for other services
  • Don’t pay twice – NPA members receive HR, employment 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

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