Recommendation 19

The combined effect of the introduction of an even earlier reimbursement process for pharmacies and the failure of Greensill Capital placed the Department in a position 15 Q 59 16 Qq 65–66 17 Supply Chain Finance in Government: Boardman Review 18 C&AG’s Report, para 18 19 C&AG’s Report, paras 2.29–2.30 The pharmacy early payment and salary advance schemes in the NHS 13 of making payments in advance of need, which Managing Public Money states should be “exceptional, and should only be considered if a good value for money case for the Exchequer can be made”. HM Treasury approval was sought and obtained for the payment to pharmacies to be made in advance. We asked NHSBSA if it had no idea in the run up to the end of February that there was a problem? NHSBSA told us that it had seen in the news about Greensill Capital and the difficulties it was having with Credit Suisse. NHSBSA also stated that the risk it was mitigating against was the risk of pharmacies failing.20