The Department of Health (DoH) published the new Maximum Legislated Dispensing Fee on 5 February 2016.
Click here to view.
Below is a tabulated format comparing the 2015 and 2016 DoH maximum legislated dispensing fee model.
We are aware that the maximum legislated dispensing fee is immaterial as most pharmacies contract to a lower dispensing fee and legislation provides for this. Therefore the minuscule increase in the maximum legislated professional fee is irrelevant and the DoH needs to understand this; that it is just a paper exercise.
Two such exercises were performed where Mediscor demonstrated by using their own unique set of medicine utilisation data that an average dispensing fee of R60.14 per line item was realised which equated to a 2.4% increase on the previous 2015 DoH maximum legislated dispensing fee model.
Click here for a summary of the analysis.
Medikredit outcomes show an average dispensing fee of R57.42 per line item on the 2016 DoH maximum legislated dispensing fee and also compared Corporate, Courier and Independent Pharmacy.
Click here to view the SEP dispensing fee model.
Call to Action
The Pharmacy Stakeholders Forum (PSF), our joint representative body, decided that it would be appropriate to bring its concerns about the dispensing fee, particularly the proposed adjustment thereof, to the attention of the Minister of Health which it submitted on 9 September 2015.
On 30 October 2015, the PSF through a third party, HealthMan, submitted a Practice Cost Methodology Model to the Director: Pharmaceutical Economic Evaluations, DoH for review. This model was proposed to dispel the rudimentary zero based costing model currently in place upon which the present 4-tier dispensing fee is based. It is envisaged that the dispensing fee will comprise a series of tariff codes based on the nature of the dispensing function.
The proposal outlined the framework for consideration in calculating the dispensing fee, advocated that all pharmaceutical services including the dispensing function be regulated under the Pharmacy Act and referred to case law.
The PSF has now called for an urgent meeting with the Minister of Health and the Pricing Committee, to demonstrate that the maximum dispensing fee increase does not keep pace with inflation and is practically irrelevant. The intention is to convince the Department of Health to implement a different dispensing model in calculating the quantum of the professional fee.
A letter to the Minister of Labour has also been drafted informing the minister that the suggested wage increase of CPI plus 2% cannot be implemented. Research undertaken in this regard has suggested that income derived to cover business costs as well as the professional fee for pharmacists amounted to 2.4%. The request is that a meeting be convened to seek a way forward.