Processing and Pricing

The PPD processes all prescriptions issued and dispensed in England under the National Health Service Act 1977. It receives prescriptions for the supply of medicines, appliances and chemical reagents issued by General Practitioners (GPs) and other NHS prescribers, as dispensed by community pharmacists, dispensing GPs and appliance contractors under contract to local Health Authorities; known collectively as dispensing contractors. Claims are also received from GPs for items that have been administered to the patient by the GP, for example influenza vaccines. Such items are usually referred to as "Personal Administration" claims.

Paragraph 17.15 of the Statement of Financial Entitlement states that claims in respect of certain high-volume personally administered vaccines (ie. influenza, typhoid, hepatitis A, hepatitis B, Pneumococcal, and Meningococcal) and combinations of these vaccines must be made on FP34PD Appendix form.

The completed FP34PD Appendix form only containing claims for the six high-volume personally administered vaccines listed above should be submitted to the PPD by no later than the fifth day of the month.

All other vaccines must be prescribed on FP10 forms.
GP's who are submitting 'Personal Administration' claims of the six high volume vaccines to the PPD can access the (non-personalised) FP34PD Invoice and Appendix forms here .

Dispensing contractors are required to despatch their prescriptions, appropriately sorted, to one of the PPD's ten processing divisions (termed the Prescription Pricing Division), no later than the fifth day of the month following that in which the medicine was dispensed.

Upon arrival at the PPD, the prescription batches are registered and the prescription forms are passed through high speed numbering machines. The prescription batches are then transferred to evening shift staff who capture the non technical data from the prescription forms (prescriber details, prescription form type, for example). The batches are then ready to be
processed by data input teams who, after deciphering and interpreting the prescription orders and taking account of endorsements made to the form by the dispenser, enter the data into the computer system. Each team is allocated responsibility for a specific group of contractor accounts, and the team leader act as the account manager, resolving payment or other queries direct with the dispensing contractor concerned. This enhances the personal service ethic. The Prescription Pricing Division has been awarded the International Quality Accreditation of ISO 9002, a
reaffirmation of the PPD principle of "getting it right first time".

Remuneration and reimbursement paid to dispensing contractors for prescriptions dispensed varies according to contract type and is detailed for pharmacy and appliance contractors and other interested parties to see in the monthly Drug Tariff which is published by the PPD on behalf of the NHS Executive.

Pharmacy contractors are entitled to reimbursement and remuneration for the following:

the total price of the medicines, appliances and chemical reagents supplied, less a deduction for the discount received by the contractors.

other fees and remuneration as listed in the Drug Tariff.

the professional fee for each item dispensed.

an allowance for containers and measuring devices.

Prescription charges collected from patients by the pharmacy contractor are deducted from the payment. The basis of payment for prescriptions submitted by dispensing doctors and for personal administration claims, is contained in the Statement of Fees and Allowances (the "Red Book").

The PPD calculates the payment due for prescriptions dispensed by contractors in England. In the case of pharmacy and appliance contractors, and oxygen concentrator suppliers, the PPD makes the payment direct to these contractors. The sums due, including local payments notified to the PPD by Health Authorities, are paid no later than the first working day
of the month.

The PPD also calculates payments on an agency basis for the Isle of Man, Jersey and Guernsey Authorities.

The provision of a high quality, cost effective service is the basis on which the PPD operates. Dispensing contractors can therefore be assured that accuracy and quality of service are afforded the highest priority, and taxpayers can be assured that the most effective use is made of NHS resource.