NHS Confederation: value-based pricing could increase NHS costs

pharmafile | March 18, 2011 | News story | Sales and Marketing NHS Confederation, PPRS, Pharmaceutical Price Regulation Scheme, UK drug pricing, VBP, value-based pricing 

Government plans to introduce value-based pricing in the UK could increase the NHS drugs bill without improving the effectiveness of the treatments patients receive.

The NHS Confederation, which represents the majority of acute Trusts, also warned that the proposals could damage public confidence in the decision making process, and “fail to spark greater innovation” in the pharma industry.

The Confederation’s acting chief executive Nigel Edwards said: “At a time when NHS finances are under severe constraints, we are worried that this policy will direct resources away from ‘non-pharmaceutical’ services such as palliative nursing care, and preventative treatments which could offer greater value to a wider group of people.”

Responding to the government consultation on the changes, he said the current PPRS system was ‘not perfect’, adding the government’s value based pricing scheme was ‘good in principle’. 

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“But this is a case of a good idea that has turned into poor policy.”

Edwards was also concerned by proposals for the government to make funding decisions based on “expert advice”.

“Our response says that unless decisions about funding treatments on the NHS are fully transparent, they will go against government principles of openness,” he said.

“The government has time to get this policy in line with its original objectives. I would urge them to take the opportunity to think again.”

The NHS Confederation submitted its warnings as a part of its response to the government’s consultation on VBP.

Pharma industry association the ABPI has also responded to the consultation and is lobbying to keep the PPRS, but take a broader view of the benefits medicines provide.

An official response from the Department of Health is expected next month.

Ben Adams

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