§ Mr. Robert B. JonesTo ask the Secretary of State for Social Services what guidance is given to health authorities on the use of discount cash flow methods for assessing drug tenders.
§ Mr. NewtonA range of guidance has been issued to health authorities on investment and option appraisal. This guidance has incorporated relevant Treasury rules on Government accounting and covers both mandatory requirements and good practice—including the use of discounted cash flow methods. This technique would not generally be applicable to the assessment of drug tenders.
462W
§ Mr. Robert B. JonesTo ask the Secretary of State for Social Services what guidance is given to health authorities on the costs of storage in evaluating tenders for drugs.
§ Mr. NewtonThe Department commissioned a recent study by management consultants—MMM Consultancy Group Ltd. —which considered the options available to health authorities in dealing with their purchasing, distribution and storage of pharmaceuticals. The report subsequently circulated to health authorities carried recommendations relating to storage of drugs of high value and high throughput. Authorities are currently reviewing their arrangements for the purchasing and storage of pharmaceuticals in the light of these recommendations.
§ Mr. Robert B. JonesTo ask the Secretary of State for Social Services when the East Anglian regional health authority last invited tenders for the supply of drugs to the authority.
§ Mr. NewtonThe regional health authority went out to tender in August 1987 for a distributive service for all product lines where the expenditure within the region was less than £5,000 per annum.
Tenders for some pharmaceutical products where expenditure exceeds £5,000 per annum were issued in January 1988.