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Update on PSNC discussions with DH on EPS Release 2 
Further to the July PSNC committee meeting, the PSNC met with the DH and CFH to discuss its position on EPS Release 2. This was a positive meeting and, in particular, with regards to funding, the Department acknowledged that a challenging transition period will take place between the current situation for contractors and one when EPS Release 2 (R2) is running efficiently. Three areas of implications needed to be reflected in funding for contractors:
Firstly, the impact of introducing a new service: DH recognised that there will be burdens for pharmacy contractors, for example with regards to setting up new processes, engaging in training and obtaining smartcards.
Secondly, the impact of dual running: DH acknowledged that running both paper and electronic systems would involve more work.
For these first two aspects, PSNC and DH are taking into account these costs as part of the 2009-10 funding settlement. As per our recent communication, further to the £87m increase in pharmacy contract funding for 2009/10 the Department of Health agreed to make substantial provisions against the excess margin over the £500m, which has been identified for a number of one-off costs pharmacy contractors are facing, including preparing for EPS2, to sustain the effective delivery of community pharmacy services. Details of these arrangements will be finalised over the coming weeks.
Further to the first two areas of impact, DH recognised that thirdly, new work processes that EPS R2 will introduce permanently may have a cost implication. A decision on any cost/saving implications of these can not be made at this very early stage of Release 2 implementation as there needs to be a period for widespread bedding in, for contractors to make changes to their processes so as to maximise the efficiencies in running the service. There may also be increased ongoing costs linked to connectivity and maintaining PMR systems. In due course, the time, efficiency and cost of pharmaceutical service provision, including the running of EPS, will be accounted for as appropriate.
The PSNC meet regularly with the DH through an EPS Working Group and will continue to work through other areas of concern such as contingency arrangements as the EPS programme moves forward.
Posted 23 November 2009