Menu
20/02/2007
Reform recommended for UK drug pricing scheme
The NHS needs to reform its system for purchasing medicines in order to deliver better value for money, the Office of Fair Trading has said.
The OFT also said that the Pharmaceutical Price Regulation Scheme should be reformed in order to focus business investment on drugs that have the greatest benefits for patients.
The NHS spends around £8 billion a year on branded prescription medicines. The OFT's study identified a number of drugs which it said were priced "significantly out of line with patient benefits". These included treatments for cholesterol, blood pressure and stomach acid.
The OFT said that some drugs currently prescribed in large volumes are up to ten times more expensive than substitute treatments that deliver very similar benefits to patients.
The study recommended that the current 'profit cap and price cut' scheme - where companies are free to set their own prices within very broad profit constraints - should be replaced with a patient-focused value-based pricing scheme, in which the prices the NHS pays for medicines reflects the therapeutic benefits they bring to patients.
The OFT said that this would enable the NHS to obtain greater value for money from its existing drug spend, releasing in the region of £500 million of expenditure that could be used more effectively, giving patients better access to medicines and other treatments which they may currently be denied.
John Fingleton, OFT Chief Executive, said: "Focusing prices on the needs of patients rather than on the costs of drug companies would be good for both patients and for business. It would allow more patients better access to more effective treatments, and it would focus drug company innovation and investment on the areas where patients need it the most, creating more valuable drugs in the future."
The Department of Trade and Industry and the Department of Health now have 120 days to consider and respond to the OFT's findings and recommendations.
(KMcA/EF)
The OFT also said that the Pharmaceutical Price Regulation Scheme should be reformed in order to focus business investment on drugs that have the greatest benefits for patients.
The NHS spends around £8 billion a year on branded prescription medicines. The OFT's study identified a number of drugs which it said were priced "significantly out of line with patient benefits". These included treatments for cholesterol, blood pressure and stomach acid.
The OFT said that some drugs currently prescribed in large volumes are up to ten times more expensive than substitute treatments that deliver very similar benefits to patients.
The study recommended that the current 'profit cap and price cut' scheme - where companies are free to set their own prices within very broad profit constraints - should be replaced with a patient-focused value-based pricing scheme, in which the prices the NHS pays for medicines reflects the therapeutic benefits they bring to patients.
The OFT said that this would enable the NHS to obtain greater value for money from its existing drug spend, releasing in the region of £500 million of expenditure that could be used more effectively, giving patients better access to medicines and other treatments which they may currently be denied.
John Fingleton, OFT Chief Executive, said: "Focusing prices on the needs of patients rather than on the costs of drug companies would be good for both patients and for business. It would allow more patients better access to more effective treatments, and it would focus drug company innovation and investment on the areas where patients need it the most, creating more valuable drugs in the future."
The Department of Trade and Industry and the Department of Health now have 120 days to consider and respond to the OFT's findings and recommendations.
(KMcA/EF)
Related UK National News Stories
Click here for the latest headlines.
22 September 2008
Scottish Government Pledges Cap On Surgery Waiting Times
Scottish patients may soon have a legal guarantee that they will wait no longer than 12 weeks for surgery. The Scottish Government's Patient Rights Bill proposes a strict limit on how long they have to wait from their surgical referral to receiving their operation.
Scottish Government Pledges Cap On Surgery Waiting Times
Scottish patients may soon have a legal guarantee that they will wait no longer than 12 weeks for surgery. The Scottish Government's Patient Rights Bill proposes a strict limit on how long they have to wait from their surgical referral to receiving their operation.
26 March 2007
'Postcode lottery' remains in NHS dental care
There are "huge regional variations" in NHS dental care in England, consumer organisation Which? has warned in new research. The survey of 466 dentistry practices - which comes a year after the start of new NHS dentists' contract in England - found that just over a third (36%) are taking on any new NHS patients.
'Postcode lottery' remains in NHS dental care
There are "huge regional variations" in NHS dental care in England, consumer organisation Which? has warned in new research. The survey of 466 dentistry practices - which comes a year after the start of new NHS dentists' contract in England - found that just over a third (36%) are taking on any new NHS patients.
14 August 2014
30 Women Recalled For Breast Screening Over Doctor Concerns
Up to 30 women are to be recalled for breast cancer screenings after five patients treated by the same doctor developed the disease. Oxford University Hospitals NHS Trust has identified the group of 30 women from a total of 626 that were seen between 2011 and 2014. It is understood that the women need "urgent appointments" for reassessment.
30 Women Recalled For Breast Screening Over Doctor Concerns
Up to 30 women are to be recalled for breast cancer screenings after five patients treated by the same doctor developed the disease. Oxford University Hospitals NHS Trust has identified the group of 30 women from a total of 626 that were seen between 2011 and 2014. It is understood that the women need "urgent appointments" for reassessment.
04 May 2004
Birmingham trust nominated to run £1.8m genetics centre
Birmingham Women's Healthcare Trust have won a bid to run the new Genetics Education and Development Centre. The Centre, which will educate NHS staff about genetics and the role it plays in modern healthcare, is part of the Government's wider £50 million strategy to make sure that patients benefit from the latest developments in genetic knowledge.
Birmingham trust nominated to run £1.8m genetics centre
Birmingham Women's Healthcare Trust have won a bid to run the new Genetics Education and Development Centre. The Centre, which will educate NHS staff about genetics and the role it plays in modern healthcare, is part of the Government's wider £50 million strategy to make sure that patients benefit from the latest developments in genetic knowledge.
27 August 2008
NHS Patients To Get Sight-Saving Drug
Patients in England suffering from a crippling medical condition, age-related macular degeneration (AMD) are now to get access to a potentailly sight-saving drug. New guidance, which applies to England, Wales and Northern Ireland, now recommends Lucentis (also called ranibizumab) for treating wet AMD. It is already available in Scotland.
NHS Patients To Get Sight-Saving Drug
Patients in England suffering from a crippling medical condition, age-related macular degeneration (AMD) are now to get access to a potentailly sight-saving drug. New guidance, which applies to England, Wales and Northern Ireland, now recommends Lucentis (also called ranibizumab) for treating wet AMD. It is already available in Scotland.
-
Northern Ireland WeatherToday:A rather cloudy morning, with a little patchy light rain or drizzle to start. Skies clearing and becoming dry and increasingly sunny in the afternoon. Maximum temperature 13 °C.Tonight:Dry with prolonged clear spells through the evening and overnight. This will allow for some fog patches to develop in places overnight. Minimum temperature 2 °C.
