SCHEDULE 2Contract Terms

Remuneration, overpayments etc.

19.—(1) The Primary Care Trust must ensure that the LPS scheme requires it to remunerate the contractor promptly, in accordance with remuneration arrangements provided for in the scheme, but subject to the arrangements for reductions of and deductions from payments provided for in the scheme.

(2) Where an LPS scheme requires a fee, allowance or other item of remuneration to be made in accordance with the Drug Tariff and the Drug Tariff provides that the fee, allowance or other item of remuneration is to be determined by a Primary Care Trust, that fee, allowance or other item of remuneration must be determined by the Primary Care Trust.

(3) The Primary Care Trust must ensure that the LPS scheme—

(a)allows it to recover any payment made to the contractor which should not have been made;

(b)provides that any such recovery of an overpayment is without prejudice to any investigation of any alleged breach of the scheme; and

(c)provides that the remuneration arrangements under the scheme, referred to in sub-paragraphs (1) and (2), are subject to any right the Primary Care Trust may have to set off against any amount payable to the contractor, any amount—

(i)owed by the contractor to it, or

(ii)which it is entitled to withhold under the terms of the scheme (including terms of the Drug Tariff applied by the scheme).