PPA: Deciding When to Use Practice Stock vs. FP10

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Procuring Stock: How Practices Obtain PPA Items

Introduction

Not every injection or device has to be administered from practice-bought stock. Sometimes, issuing an FP10 prescription for the patient to collect from a pharmacy might be the smarter financial or practical choice - especially for expensive items that could otherwise cause your practice to lose money. This article helps you weigh up which approach suits different clinical scenarios and cost profiles.

(For general tips on coding your claims, check out Coding & Claiming Best Practices (EMIS Focus) )

1. The Basic Choice

• Practice Stock (Personally Administered)

  • You buy the item from a wholesaler or manufacturer, store it, administer it, and claim reimbursementunder the PPA rules.

  • Great for commonly used, relatively low-cost items you can purchase at or below the NHS Tariff price.

• FP10 Prescription

  • You hand (or send electronically) a prescription to the patient, who collects the medication from a community pharmacy. The NHS pays the pharmacy for the drug cost.

  • Useful when an item is costly or rarely used, making it unwise to buy it in bulk or risk having leftover stock.

2. When Practice Stock Makes Sense

1. High-Volume / Routine Items

   • Examples: Vitamin B12 injections, Depo-Provera, many vaccines (especially flu).

   • Buying these in bulk usually means lower unit costs, and reimbursement typically leaves you at least breaking even - often with a small margin.

2. Convenience for Patient and Staff

   • Quick, one-stop service. The patient doesn’t have to visit a pharmacy, then return. This is ideal for routine injections like B12, where the cost is low and the administration frequency is high.

3. Clear Reimbursement Margin

   • If the official Tariff rate (minus discount) plus fees is higher than what your supplier charges, that difference supports your practice.

   • Tip: Track how your practice’s discount rate (“clawback”) affects the net payment. If you consistently purchase below net reimbursement, great!

(For more on sourcing items that don’t leave you out of pocket, see Procuring Stock.)

3. When FP10 Might Be Smarter

1. High-Cost Items with Potential Loss

   • Certain hormone implants (e.g. goserelin/Zoladex), specialty injections, or brand-only treatments can exceed the NHS Tariff net - meaning you’d lose money by stocking them.

   • In these cases, issuing an FP10 means the cost is handled through the pharmacy contract, protecting your practice from the shortfall.

2. Rarely Needed or Expensive-to-Store Products

   • If it’s something you’ll only administer once in a blue moon, you risk expiry or wasted stock if it’s never used.

   • Also, some medications need strict cold-chain or have short shelf lives, complicating storage.

4. Practical Example: Hormone Implant

• Zoladex (Goserelin) is a classic example. Suppose your supplier charges £270 for a single dose, but the NHS Tariff net works out to £250 after discount. You’d lose £20 each time.

• FP10 Approach: Write a prescription. The pharmacy obtains the drug (and can get reimbursed more flexibly under pharmacy pricing rules), the patient collects it, and you administer. You don’t have to cover the cost yourself.

5. Communication Tips

1. Explain the Rationale

   • If you opt for an FP10 route for cost reasons, a short explanation can help patients understand why they need to go to the pharmacy first.

2. Reduce Confusion

   • Label appointments clearly if the patient needs to bring medication with them. Encourage them to pick it up in advance.

3. Don’t Overcomplicate

   • If a medication is straightforward, readily available, and not a net loss, go for the simpler in-house stock route.

Conclusion

Choosing between practice stock or an FP10 prescription is a balance of clinical convenience and financial sense. Higher-volume, lower-cost items are typically a no-brainer for PPA, while expensive or infrequently used items might be best left to pharmacy dispensing.

Next: Coding & Claiming Best Practices (EMIS Focus)

Looking for More?

• Get a refresher on where to buy items and how to avoid overpaying in Procuring Stock.

• Ready to ensure every PPA item is claimed correctly in your system? See Coding & Claiming Best Practices (EMIS Focus).