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<p>The National Health Service pays community pharmacies that provide NHS pharmaceutical
services a combination of fees and allowances for services provided and reimbursement
for the products supplied as laid out in the Drug Tariff. The Drug Tariff is a compilation
of determinations made by the Secretary of State and NHS England.</p><p> </p><p>The
reimbursement prices for products supplied are set in a number of different ways depending,
for example, on whether the product is prescribed as a brand or a generic. For example,
reimbursement prices for the most commonly prescribed generic products are set out
in Part VIIIA of the Drug Tariff and are placed in categories A, C and M. The reimbursement
price is established differently depending on the category in which the product is
placed. For example, Category M prices are set using volume and sales data from suppliers.</p><p>
</p><p>The total of the reimbursement prices of products supplied by a pharmacy is
subjected to a deduction as set out in Part V of the Drug Tariff. The size of the
deduction is dependent on the value of the total of the reimbursement prices for that
pharmacy. The larger the total, the larger the deduction. Each pharmacy providing
NHS services, whether independent or part of a larger company, is paid in this way.</p><p>
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