NHS
NHS Confederation calls for debate on NHS drug costs
By NHS Confederation
Sep 9, 2005, 15:49

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.�

All rights reserved by www.rxpgnews.com