Pricing a Script

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Pricing a Script (Average GP per script)

[Aug 07]

There are several possible reasons for a decrease in the Average GP/script:

1. If some very expensive drugs have been dispensed, or if some average to expensive drugs have been dispensed as stat dispensing.

2. If the stock card has the wrong pack size. This usually happens to drugs that are both POS and dispensary. Shop staff may change the pack size e.g. from 100ml to 1. This can usually be easily spotted in the Drug Cost and Analysis report under script details. One or two of the lines will have a very high list cost and very low turnover.

3. If List Cost has an incorrect figure that is very high.

It is very interesting to observe the relationship between the increase in list cost of a drug vs. subsidy price, which in return affects the GP figure. This is illustrated by the following examples:

Formulae Used:

- GP (excl. GST) = (Total payment - GST - List Cost)

- Total Payment (Subsidy Price + Premium)

- Subsidy Price (incl. GST) = Subsidy Cost + GST + Markup + Pharmaceutical Service Fee

- Subsidy Price (excl. GST) = Subsidy Cost + Markup + Pharmaceutical Service Fee

*All costs are exclusive GST

**Subsidy Cost is the subsidy shown in the Pharmac Schedule. Note: This does not include the wholesaler markup or dispensing fee.

***For ease of comparison with GP, the calculation for the Subsidy price is shown as being exclusive of GST.

1. Rx Augmentin 125/5ml Syrup 100ml

List Cost = $2.98

Subsidy Cost= $2.75

Subsidy Price (excl. Gst) = Subsidy Cost + Markup + PSF

= $2.75 + 4% + $5.16

= $2.86 + $5.16

= $8.02

GP (excl. GST) = Subsidy Price excl. GST- List Cost

= $8.02 - $2.98

= $5.04

2. Rx Lipex 20mg T x30

List Cost $14.61

Subsidy Cost $13.50

Subsidy Price (excl GST) = Subsidy Cost + Markup +PSF

= $13.50 + 4% + $5.16

= $14.04 + $5.16

= $19.20

GP (excl. GST) = Subsidy Price excl. GST - List Cost

= $19.20 - $14.61

= $4.59

3. Rx Seroquel 200mg T x60

List Cost $204.59

Subsidy Cost $189.00

(Note: Markup is 5% if Base cost per pack is >$150.00)

Subsidy Price (excl GST) = Subsidy Cost + Markup +PSF

= $189 + 5% + $5.16

= $198.45 + $5.16

= $203.61

GP (excl. GST) = Subsidy Price excl. GST - List Cost

= $203.61 - $204.59

= -$0.98

4. Rx Recormon 3000 iu/0.3ml Inj x 1.8ml

List Cost $246.87

Subsidy Cost $228.06

(Note: Markup is 5% if Base cost per pack is >$150.00)

Subsidy Price (excl GST) = Subsidy Cost + Markup +PSF

= $228.06 + 5% + $5.16

= $239.46 + $5.16

= $244.62

GP (excl. GST) = Subsidy Price excl. GST - List Cost

= $244.62 - $246.87

= -$2.25

5. Rx Tacrolimus 5mg C x 60 (rx#568768; rx550547)

List Cost $1,389.94

Subsidy Cost $1284.00

(Note: Markup is 5% if Base cost per pack is >$15.00)

Subsidy Price (excl GST) = Subsidy Cost + Markup +PSF

= $1284.00+ 5% + $5.16

= $1348.20+ $5.16

= $1353.35

GP (excl. GST) = Subsidy Price excl. GST - List Cost

= $1353.35- $1,389.94

= -$36.59

6. Rx Morphine LA 30mg x 30

List Cost $11.70

Subsidy Cost $10.80

PSF for controlled drugs = $8.71

Subsidy Price (excl GST) = Subsidy Cost + Markup +PSF

= $10.80 + 4% + $8.71

= $11.232 + $8.71

= $19.94

GP (excl. GST) = Subsidy Price excl. GST - List Cost

= $19.94- $11.70

= $8.24

N.B. The list cost on the stock card is the cost given by the wholesalers on their price files. This may or may not be the actual price (real cost) to the pharmacy as these prices do not take into account any discounts or rebates.

Please also note that in RxOne there is a facility to add surcharges to a script.