Improving Dispensing Profitability 2024


Amidst ongoing challenges and pressures, there are several straightforward measures to enhance
your dispensary’s profitability! Dispex members who
fully utilise the benefits of their membership
package, including access to a comprehensive suite of online profitability tools and training, may
discover they do not
need to implement as many cost-cutting measures as other dispensing sites.

How to improve your profitability:

Ensure the accuracy of your PA’s and VAT claims: If you need assistance to make the correct
claims, then take a look at our comprehensive learner led course PA’s & VAT. Members are entitled
to discounted places, plus training funding should be available from your local Training Hub.

Get your submissions right the fist time: Each month ensure your endorsements, switched items
and batch submissions are accurate, in order to receive the correct reimbursement for the products
you dispense and the correct remuneration for the services you provide.

Dispex has teamed up with the NHSBSA to provide FREE lunchtime webinars to help in this area. Our
webinars are hosted by Mark Gibbon, an NHSBSA Pharmaceutical Technical Analyst, and he allows
plenty of time for questions.

Generics costing more than tariff: Each month over 140 generics, as priced in the Drug Tariff or DM+D,
are priced at a lower price than the purchase price. When you take the clawback into account, this jumps
up to nearer 250 generics. In order to reduce losses on the Generics
Costing More Than Tariff, the dispensers
can change the script to a generic brand or generic manufacturer (don’t forget the doctor will need to initial
the change).

Each month we update our table that highlights commonly dispensed generics which will make dispensing
practices a loss, as the best purchase price (from our preferred provider’s price list) is more expensive than
reimbursement basic price.

The options available to you are:

  • Do nothing – and absorb the loss.
  • CHANGE the script by adding the generic manufacturer supplied (full guidance is available online for members).
  • Do NOT change the script if the manufacturer’s price is less than the tariff.
  • Do NOT change the script if there is no manufacturer’s price and the purchase price is less than the tariff price.

Members can login to view the table and our How to Change Scripts guidance is also available online.

Brand Comparison: We compare brands in the same classes of drug, assuming the same clinical efficacy.
The comparisons show the NHS cost and the difference in profitability taking into account wholesalers
discount (reduced and full) and manufacturers’ discount schemes (MDS). Discounts are offered and some
disappear, often without notice.

Positive Parallel Imports (PI’s): We have had a deep dive into the profitability and pitfalls of Parallel Imports
(PI’s). We provide a list of Positive PI’s, which are more cost effective than UK brands. There are many
Negative PI’s, which will decrease profitability if you use them instead of UK brands. Members can login to
keep up to date.

Manufacturers Discount Updates: We update members with the latest discounts offered by manufacturers
and highlight any discounts withdrawn. We analyse the impact of these changes on individual brand
profitability. Members can
login to keep up to date.

Sign up annually to the Dispensary Services Quality Scheme (DSQS): The scheme not only supports the
maintenance of top-quality services for your dispensing patients, but it also provides rewards to practices
for their commitment to excellence. Payment is based on the number of dispensing patients on your
organisation’s list on 1st January in the financial year to which the payment relates. The payment is £2.58
per dispensing patient per financial year, so depending on your list size, it is a potentially valuable source
of income and often supports other services within the practice. There are a few key quality requirements
of the Scheme, including compet-ency assessments and training requirements, which Dispex can assist you
with! Need help getting started with DSQS or need a recap? Then consider attending our DSQS Zoom tutorial.

Training Opportunities: In these extraordinary times, retaining staff can pose a monthly challenge. One
effective approach to maintain employee loyalty may involve providing them with opportunities for
professional development with the potential for advancement to higher roles and pay grades in the future.
Dispex offers many forms of training including tutorials, online learner led courses and in-house training.
Don’t forget training funding should be available from your local Training Hub, as well as leadership and
management training funding from your PCN. Click
here for details.

Even the little things add up: Are you securing the most favourable deals for your consumable supplies,
including denaturing kits, owing books, dosette trays,
bottles, cartons bags, stationery, controlled drug
registers? While these may be lower-cost items individually, their cumulative expenses can be significant.

Dispex offers competitive pricing to non-members and extends even more substantial discounts to our
members on controlled drug registers, denaturing kits, owing books and free delivery on dosette tray orders.

We trust that our member services and guidance will help alleviate some of the financial stress on your practice,

If you have mislaid your website login or are looking to join Dispex please email us at