HC Deb 04 November 1999 vol 337 cc304-5W
Ms Oona King

To ask the Secretary of State for Health what measures are being taken to ensure that the NHS is able to purchase drugs at the cheapest possible rate. [95163]

Mr. Hutton

We have a number of measures in place to help ensure that the National Health Service purchases medicines on reasonable terms.

The Pharmaceutical Price Regulation Scheme (PPRS) secures the provision of branded medicines at fair prices to the NHS that also reflect the cost of researching and developing these medicines. We have recently negotiated a new PPRS which came into effect on 1 October. This includes a reduction of 4.5 per cent. in list prices of branded medicines, which will save the NHS over £150 million a year.

Prices for generic medicines, which are outside the PPRS, are determined by competition in the market. In the past this market has delivered generic medicines at reasonable prices and ensured continuity of supply. Prices, however, have risen sharply this year owning at least in part to supply problems. We are concerned that the scale of the rises may be unjustified and are examining every possible option to see how a more normal market situation can be restored.

Hospitals buy many medicines by competitive tender, often pooling their purchasing power through the NHS Supplies Authority and may utilise formularies to make choices between medicines of similar properties but differing prices.

The arrangements for reimbursing community pharmacies and dispensing doctors for the cost of the medicines they supply contain incentives which encourage them to shop around for the lowest prices, while ensuring that much of the discount which they receive is clawed back. In 1998–99 a total of £400 million was saved in this way.

Mr. Burstow

To ask the Secretary of State for Health what was the total expenditure by the NHS on items in part IXB of the Drug Tariff in each year from 1988–89 to 1998–99, with such breakdown of the figures for each year to types of item as is available. [96079]

Mr. Hutton

[holding answer 1 November 1999]: The information available is shown in the table.

Total expenditure by the National Health Service on items in part IXB of the Drug Tariff is not available. The table shows the net ingredient cost of items in part IXB of the Drug Tariff that were dispensed in the community in England. Information on similar items dispensed in hospitals is not available.

The net ingredient cost is the basic cost of an appliance and does not take account of discounts, dispensing costs, fees or prescription charges income.

The net ingredient cost of incontinence appliances listed in part IXB of the Drug Tariff and dispensed in the community in England, 1988–98
Net ingredient cost (£000)
Incontinence appliances 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Anal plugs — — — — — — — — — — 37.6
Catheter valves — — — — — — — — 11.0 96.0 168.4
Drainable dribbling appliances 7.5 17.6 8.7 17.2 16.8 10.1 7.4 7.3 7.1 5.0 5.0
Incontinence belts 3.1 3.1 — 4.6 6.0 8.1 9.8 9.5 8.6 7.9 1.5
Incontinence sheaths 3,476.2 3,404.7 3,749.9 5,683.5 6,506.6 7,316.2 7,803.6 7,891.7 8,310.5 8,692.3 8,990.2
Incontinence sheath fixing strips and adhesives 131.7 162.2 157.0 238.2 255.4 275.9 298.2 317.3 329.0 312.2 296.0
Leg bags 7,209.3 6,774.9 7,665.6 9,746.3 10,840.4 11,842.1 12,647.6 13,371.4 13,684.0 13,850.9 14,280.6
Night drainage bags 2,671.6 2,936.7 3,716.6 4,195.9 4,661.4 5,056.4 5,338.8 5,575.1 5,765.9 5,839.1 5,962.6
Suspensory systems 200.3 61.4 175.6 144.6 149.4 136.0 139.0 143.6 141.2 130.9 116.8
Tubing and accessories 146.4 105.8 97.9 174.1 203.3 179.8 199.7 238.8 278.2 364.5 490.8
Urinal systems 362.7 236.5 213.5 523.1 511.2 490.9 526.0 501.6 492.0 454.1 421.8
Total 14,208.7 13,703.1 15,784.9 20,727.4 23,150.5 25,314.7 26,970.1 28,056.3 29,027.6 29,752.9 30,771.4

Notes:

  1. 1. The data up to 1990 are not strictly consistent with data from 1991 onwards. Figures for 1988–90 are based on fees and on a sample of 1 in 200 prescriptions dispensed by community pharmacists and appliance contractors only. Figures for 1991 onwards are based on items and cover all prescriptions dispensed by community pharmacists, appliance contractors, dispensing doctors and prescriptions submitted by prescribing doctors for items personally administered.
  2. 2. The net ingredient cost is the basic cost of a drug and does not take account of discounts, dispensing costs, fees or prescription charges income.