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Background to the Pharmacy Reward Scheme
The Pharmacy Reward Scheme was created as a
response to losses from forged, stolen and counterfeit
prescriptions within the NHS and was one of the
recommendations in the Cabinet office led Efficiency
Scrutiny looking at prescription fraud. It is administered
in England by the PPA Compliance Unit Participation
in the scheme is voluntary, but the Terms of Service
and the Drug Tariff have been amended to allow
contractors to claim a reward.
Security features on prescription forms
The FP10, from April 1998 incorporates several security
features. These include ink that is difficult to reproduce,
ultra violet markings and serial numbering. These
security features taken together, make the form more
difficult to forge and serial numbers make forms easier
to track once any theft has been reported.
These measures contribute to making the prescription
form itself more secure. However, it is important that
pharmacists and dispensing doctors are aware of these
features in order that the greatest benefit can be
obtained.
Whilst participation in the scheme is voluntary
pharmacists are encouraged to take part in order to
help minimise losses to the NHS.
The Reward Scheme
There are two types of reward that are available under
the scheme, the basic reward and the bonus award.
The Basic Reward
This covers circumstances where the form has been
identified as fraudulent before the items have been
dispensed. The conditions for reward are that
 The fraudulent FP10 has been reported to the Health
Authority.
The claim form has been returned to the PPA within
10 days of the presentation of the fraudulent form.
The items have not been dispensed.
The specialist pharmacy reward staff at the PPA will
assess the claim and base their recommendation on
the following criteria;
The form is not a genuine form because it contains a
serial number reported as stolen and the form was not
signed by an authorised prescriber or
Although not reported as stolen the form is
recognised as such by anomalies in the
completion/signature on the form or
The form is a detectable counterfeit form which has
not been signed by an authorised prescriber or
There is a detectable alteration of the prescription
details, which has not been made by the prescriber.
The Basic Reward is 10% of the basic NHS price of the
items ordered on the fraudulent form, or £10 whichever
is the greater.
The Bonus Award
This reward covers circumstances where the items
may or may not have been supplied. The conditions for
reward are that
The fraud must be reported to the Health Authority
within 14 days of the form being presented.
The claim form must be returned to the PPA
Pharmacy Reward Scheme within 24 days of the
presentation of the form.
The specialist pharmacy reward staff at the PPA will
assess the claim and base their recommendation in
part on the criteria outlined for the Basic Reward.
However, in order to qualify for the Bonus Reward the
PPA must consider that the information available on
the claim has contributed to the detection and
prevention of a fraud, or the recovery for the NHS of
sums lost through a fraud other than the cost of the
items listed on the form. Therefore, at least one of the
following criteria must be fulfilled;
The fraud would not have been detected or stopped
without the information provided on the claim
The fraud would not have been detected or stopped
until a later date without the information provided on the
claim
The information provided on the claim was cited as
evidence in criminal or civil proceedings.This is
regardless of the outcome of those proceedings.
The Bonus Reward is 5% of the total savings resulting
from the information provided, or £10, 000, whichever is
the less. Information on how the reward is calculated
can be found at paragraph 17 of HSC 1999/133 or
under the Pharmacy Reward Scheme section in the
Drug Tariff Part XIVC.
Payment of the Reward
Payment of the basic reward will normally be made at
the end of the month following the month in which the
claim form is received. Payment of the bonus reward
will depend on the prevention of a wider fraud and may
take some months to finalise.
The reward will be paid to the contractor making the
claim. Contractors are encouraged to ensure that their
staff share in the reward where appropriate.
How to Claim
Claim forms can be obtained from the Pharmacy
Reward Scheme by telephoning 0191 203 5740.
Claim forms will have an addressed envelope for return
of the form.
Any queries regarding claims can be made to the
Pharmacy Reward Scheme on 0191 203 5740 or to Mr
Alan Harrison, Pharmacy Reward Scheme manager, on
0191 203 5717.
Frequently Asked Questions
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