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Local Pharmaceutical Services Contracts - Impact of the White Paper
PSNC is regularly contacted about Local Pharmaceutical Services (LPS) Contracts, mainly as a result of the Essential Small Pharmacy LPS, but also in relation to other LPS Contracts.
Unlike most pharmacies, which are ‘on the pharmaceutical list’, the pharmacies that are providing local pharmaceutical services are not, generally, included in the PCT’s list. Instead they are the subject of individual contracts signed by the PCT and the pharmacy. They have a commencement date and a termination date. Sometimes, there may be a clause allowing extension or renewal, subject to the agreement of the parties.
The publication of the White Paper ‘Equity and excellence: Liberating the NHS’ has caused a number of questions to be raised, about the relationship between the pharmacy as one party to the contract, and the PCT as the other, since PCTs are expected to be abolished and will cease to exist from 2013.
A contract for LPS which has not yet been signed (or where renewing an existing LPS contract) will need to take account of the likely changes in the NHS structure. We recommend that any pharmacy contemplating agreeing a new (or renewing) LPS contract, should consider taking expert legal advice to ensure it is fit for purpose, within the new NHS structure.
Posted 1 September 2010