Pharmacy body urges action after IT system caused shortfalls in the thousands

A trade association is calling for ministers to intervene after some pharmacies faced shortfalls of tens of thousands of pounds following problems with a new IT system.

The National Pharmacy Association (NPA), which represents independent pharmacies across the UK, has warned errors in the Data Capture Validation and Pricing (DCVP) process caused repeated shortfalls in expected funding.

The NPA said the DCVP system caused problems when it was introduced last summer, with some pharmacies reporting shortfalls of tens of thousands of pounds due to errors.

There is also a two-month wait for pharmacies to be reimbursed for ordering medication and other medical supplies.

NHS National Services Scotland (NSS) apologised for issues when the system was introduced and said it “continues to remedy any remaining payment issues promptly”.

The Scottish Government said it has been “assured by NSS that any incorrect payments have been, or are being, rectified”.

Paul Rees, NPA chief executive, said: “Our members are telling us they cannot plan, cannot settle their accounts, and even face costly overdrafts or issues paying medicine suppliers because of issues with this troubled payment system.

“In the 21st century we should not be facing a computer shambles of this nature – it’s just wrong that hard-working community pharmacies should be facing financial stress because an IT system cannot get its sums right.

“We believe ministers bear ultimate responsibility for this, so they should intervene to make sure the system is fit for purpose – providing timely and accurate information and paying pharmacies the money they are owed – and also compensating those who have lost out.”

Janice Oman, NPA Scotland representation manager, said the system when introduced was “not fit for purpose”.

She added: “It meant that pharmacy owners were now dealing with absolute estimates, ballpark figures, on what they would be getting to be able to cover their overheads, utilities and the drug bills.

“They were absolutely in the dark, wondering, ‘is this money really mine? Can I use that to think about what to do with it in the future, or is there an overpayment there and will the NHS suddenly take that back?’ – which they did.

“The NHS board, back in December, where there is the highest prescription volume time, the most stressful time for pharmacies and the highest utility bills, there was huge callbacks to the board of money which was paid out, but weren’t actually clearly paid as an overpayment.”

The IT issue led to pharmacies making difficult decisions in order to stay open.

Ms Oman said some employers cut staff hours while waiting for reimbursement.

“There have been pharmacies whose wholesalers have put their medicine supplies on stop because of non-payments of bills,” she added.

“There is impact in that, but the vast majority have managed to keep going at their absolute own expense, but they need to know that this is not the way forward.

“We feel that ministers have to take responsibility for it as the health minister and Community Pharmacy Scotland can negotiate with the Scottish Government.”

A Scottish Government spokesperson said: “We are aware that following the introduction of the new DCVP system by NHS NSS, there were issues regarding payments being made to community pharmacy contractors.

“The Scottish Government has been assured by NSS that any incorrect payments have been, or are being, rectified.

“Scottish Government officials, NSS and Community Pharmacy Scotland continue to monitor the situation.”

Martin Morrison, associate director at NHS NSS, said: “We acknowledge the challenges faced by pharmacy contractors since July 2023 during the introduction of a new national IT system for over 1,200 community pharmacies in Scotland. We have been transparent about these issues and have worked closely with Community Pharmacy Scotland throughout.

“The new system, replacing a 20-year-old predecessor, supports electronic claims and future payments. We recognise and apologise for the impact of these issues and thank everyone for their patience as we resolved them.

“In July 2023, we implemented an interim payment solution using estimates based on recent claiming activity, ensuring no community pharmacy was left short due to the use of estimated payments.

“As of February 2024, payments are now based on actual dispensed items. Overpayments have been addressed, with a reconciliation completed and independently audited.

“We continue to remedy any remaining payment issues promptly. NHS National Services Scotland remains committed to working closely with community pharmacies, NHS boards, Community Pharmacy Scotland and other stakeholders to ensure accurate payments and clear communications are provided.”

A spokesperson for Community Pharmacy Scotland (CPS), said: “CPS continues to work closely with NSS colleagues to resolve these issues.

“CPS is advocating for a more robust, more transparent, and quicker payment system going forward.

“As a sector that delivers crucial medicines supply and NHS services to the public, it is imperative that these businesses stay open and operational to provide care where it is needed, in the community.”