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AAH Change Discount Terms for Quota Lines Ordered Direct
AAH has announced that with effect from 29 October it will apply normal rates of discount to qualifying ethical medicines when a pharmacy orders direct from a manufacturer rather than through AAH.
Previously, AAH withheld the discount in order to cover the cost it incurred in manually processing the invoicing element when a product was ordered direct. In future, AAH will charge the manufacturer for providing this service.
Mark James, managing director of AAH Pharmaceuticals, said, “I am sure our community pharmacy customers will welcome this news. We think it is fairer for manufacturers to pick up the cost involved as in effect we are providing the invoicing service on their behalf rather than that of our pharmacy customers. Of course, it would benefit everyone – from manufacturer to patient – if wholesalers are supplied with sufficient stock and the need for direct ordering is reduced to an absolute minimum”.
This change does not apply to special order products which are not stocked by AAH but can be acquired by AAH on behalf of a customer if requested to do so. There will continue to be no discount for these special order lines with any discount received from the manufacturer being used by AAH to cover the additional costs involved with obtaining, processing and invoicing these products.
PSNC Comment
PSNC has been in discussion with AAH on this issue for some time, passing on the concerns of those pharmacy contractors who have been faced with dispensing individual products at a financial loss where AAH were unable to supply the product because of a manufacturer imposed quota. We are grateful that AAH have listened to the concerns of their customers and agreed to amend their discount terms.
The need to order branded products directly from manufacturers because of manufacturer imposed quotas has been steadily increasing because of changes in the European medicines import/export market and is expected to rise further following the proposed PPRS price reductions. Ordering directly from manufacturers imposes a workload burden on pharmacy contractors and there is growing evidence that in some cases, this is resulting in delays to patient care. Present levels of direct ordering are unsustainable. PSNC will be working with manufacturers and other stakeholders to support finding solutions to current and pending supply issues.
More Information
PSNC Website: Manufacturers Quotas
Posted 29 October 2008