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NHS Confederation calls for debate on NHS drug costs
Sep 9, 2005 - 3:49:00 PM, Reviewed by: Dr.
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�If the cost of implementation is greater than anticipated or if NICE issues unexpected guidance, that�s when PCTs face financial issues.�
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By NHS Confederation ,
The NHS Confederation is calling for an urgent debate on rapidly increasing NHS drug costs following today�s Audit Commission report about the financial implications of implementing NICE guidance on new medication and surgical procedures.
Dr Gill Morgan, Chief Executive of the Confederation which represents more than 90% of NHS organisations, says: �The annual cost to the NHS of complying with NICE guidance on new drugs and procedures is �800 million, but that�s just 10% of the total NHS drugs bill.
�Prescribing drugs cost the NHS �8 billion last year, an increase of 46% since 2000, and this rapid rise in the medication bill is a major cause of the financial pressures currently facing NHS organisations.
�Extra investment in the NHS is growing by an average of 7.4% a year in real terms but drug costs are rising even faster.
�That is why 85% of the NHS organisations who were questioned by the Audit Commission for its report said there wasn�t enough funding available for them to fully implement NICE�s guidance on new drugs and procedures.�
The Audit Commission acknowledges that the NHS is not given specific funding to implement NICE guidance and that �comprehensive implementation of all guidance across the NHS may not be possible as there may be competing priorities for funding locally�.
Dr Gill Morgan says: �Scientific advances mean that new and often expensive drugs are recommended for NHS use, which is clearly good news for patients and clinicians, but we urgently need a proper debate about how these drugs can be funded.�
Weaknesses in NHS financial management, rather than cost, are identified by the Audit Commission as the major barrier to implementation of NICE guidance.
Dr Gill Morgan says: �Financial planning and management can always be improved and we welcome NICE�s proposals to help NHS organisations.
�NICE guidance is published throughout the financial year and so PCTs are in the difficult position of trying to second guess NICE�s likely decisions when they are planning their annual budgets and set aside money they anticipate will be sufficient to implement their guidance.
�If the cost of implementation is greater than anticipated or if NICE issues unexpected guidance, that�s when PCTs face financial issues.� 
- NHS Confederation
www.nhsconfed.org
The NHS Confederation represents more than 90% of the organisations that make up the NHS throughout the UK. Its members include the majority of NHS trusts, foundation trusts, primary care trusts and health authorities in England; trusts and local health boards in Wales; NHS boards and special boards in Scotland; and health and social service trusts and boards in Northern Ireland.
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