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The Branded Health Service Medicines (Costs) Regulations 2018

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Regulation 14

SCHEDULE 4Recoverable Sums

This schedule has no associated Explanatory Memorandum

1.  For the purposes of regulation 14, the recoverable sum will be the sum of—

(a)the difference between the amount which the manufacturer or supplier would have received in any month where there is a contravention (that month starting on the date of the first contravention that relates to the presentation) had the product been supplied at the maximum price and the amount that the manufacturer or supplier actually received; and

(b)the amount calculated by multiplying that difference by the appropriate additional percentage specified in the table.

2.  In respect of a contravention described in column (1) of the following table, the appropriate additional percentage is specified opposite in column (2).

Table

Column (1)

Contravention

Column (2)

Additional percentage

First contravention5%
Second contravention15%
Third contravention25%
Fourth contravention35%
Fifth or subsequent contravention50%

3.  For the purposes of this Schedule—

(a)“second contravention” occurs where a presentation continues to be supplied in contravention of these Regulations for a period of two months after the first contravention which relates to that presentation;

(b)each subsequent contravention occurs where the same presentation continues to be supplied for a further period of one month from the date of a previous contravention which relates to that presentation;

(c)if the period between contraventions means that the amount calculated under paragraph 1(a) is zero, the next month for which there is an amount calculated under paragraph 1(a) that is greater than zero in respect of that presentation is treated as a new first contravention for the purposes of paragraph 2.

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