By Dr Philip Koopowitz – Director Dispex
MDS, RWA, QE and now ePACT
Over the past month we have seen 2 manufacturers move the way they deal with rebates away from the more traditional method of getting the Main Wholesalers to calculate rebates against purchases. Most manufacturers offer rebates or discount off invoice, which is dealt with by the main wholesalers, and many now have caps on the number of items which qualify for the discount. The rebates are often paid 2 or 3 months after the invoice has been paid. Keeping an eye on whether you have been paid, or the discount has been taken off the invoice is nigh on impossible with the smoke and mirrors that pervade the industry.
Understandably many manufacturers are concerned about grey trading where some of our colleagues buy products which should be used for their own dispensing patients, at a great discount, and then sell them on via brokers and the products find their way into the supply chain for pharmacy. The practices that engage in grey trading are enticed by the promise of great wealth – this is not always the case and sometimes the brokers can use up the cap, leaving the practice to buy the products at the full price.
There has been a move by Orion and VISUfarma to calculate rebates according to drugs dispensed by practices. They do this via ePACT Dispensed Drugs Monthly data – this means that only their branded products actually dispensed will count towards the rebates. It is very important to prescribe these particular products by brand to ensure you benefit from the rebates. Although PSUK is running one of these rebate schemes, you do not necessarily need to order those products from PSUK, as the rebate will be calculated according to the prescriptions sent to NHSBSA and not your purchase data. Previously PSUK managed the Orion rebates, but now this is being managed by Safe Dispenser. The rebates on Orion’s and VISUframa’s products is better than it was under the old system, and is highly competitive irrespective of which wholesaler you use. All of these products MUST be prescribed by brand.
This shift to calculating rebates/discounts according to actual usage will have a useful effect on reducing grey trading, but it will potentially cut off the ability to improve profitability by prescribing generically and dispensing a profitable brand. Dispex will be keeping a close eye on this and will advise our members which products should be prescribed by brand, and which are still best to prescribe generically and where appropriate dispense a profitable brand.
