Hub & Spoke

Update September 2024:

DHSC informed us that, following the General Election where the progress of these amendments was paused, they are briefing new ministers across all policy areas, including hub and spoke dispensing between different pharmacy owners. As this will take time, they are now not in a position to implement these proposals from 1 January 2025, as previously intended.

We do not have further clarity on the timescales but we will update the sector once we have more information.

Gordon Hockey, Director, Legal at Community Pharmacy England, said:

“Community Pharmacy England broadly supports the introduction of changes that would allow hub and spoke dispensing to occur between different legal entities, but they need to be introduced in a way that is safe for patients and does not lead to a proliferation of hubs that can dispense directly to patients, which would undermine market entry controls. Without controls on hubs, the community pharmacy market could be disrupted.

“We are also concerned that while hub and spoke dispensing may potentially release capacity in community pharmacies, there is no evidence that it will lead to financial savings for the sector. In addition, any activity saving will come at a cost, and given the critical state of pharmacy finances, pharmacy owners may not be able to invest in this at the moment.

“The previous Government published its intent to progress the changes it had consulted on, but this work was paused when the General Election was called. The Department of Health and Social Care is now in the process of briefing new ministers across all policy areas, including hub and spoke. Officials have indicated this process may take some time and the sector will be given more clarity on timescales as soon as practicable.

“In the meantime, the Department has confirmed that it will continue to discuss the relevant issues with Community Pharmacy England. This includes patient safety issues and the potential proliferation of hubs, which are primarily issues with the Department’s Model 2 (patient – spoke – hub – patient) where supply of the dispensed medicine is from the hub direct to the patient.”

Future Changes

In 2022, the Department of Health and Social Care (DHSC) issued a consultation on hub and spoke dispensing. The consultation proposed making legislative changes to allow the operation of hub and spoke dispensing across different legal entities, and proposes to introduce two different models for this. Model 1 would involve patients only interacting with the spoke pharmacy, whilst Model 2 would permit the hub to supply medicines directly to the patient on behalf of the spoke.

In May 2024, the Government confirmed the next steps following the consultation and can be found using this link – Government response to the consultation on hub and spoke dispensing – GOV.UK (www.gov.uk)

Further information

Community Pharmacy England (formerly PSNC) submits response to Hub and Spoke consultation

View our consultation response in full

For more information on this topic please email regulations.team@cpe.org.uk