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| Arrangements between NHS bodies and local authorities. |
31. - (1) The Secretary of State may by regulations make provision for or in connection with enabling prescribed NHS bodies (on the one hand) and prescribed local authorities (on the other) to enter into prescribed arrangements in relation to the exercise of-
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(a) prescribed functions of the NHS bodies, and |
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(b) prescribed health-related functions of the local authorities, |
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if the arrangements are likely to lead to an improvement in the way in which those functions are exercised.
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(2) The arrangements which may be prescribed include arrangements-
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(a) for or in connection with the establishment and maintenance of a fund- |
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(i) which is made up of contributions by one or more NHS bodies and one or more local authorities, and
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(ii) out of which payments may be made towards expenditure incurred in the exercise of both prescribed functions of the NHS body or bodies and prescribed health-related functions of the authority or authorities,
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(b) for or in connection with the exercise by an NHS body on behalf of a local authority of prescribed health-related functions of the authority in conjunction with the exercise by the NHS body of prescribed functions of theirs, |
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(c) for or in connection with the exercise by a local authority on behalf of an NHS body of prescribed functions of the NHS body in conjunction with the exercise by the authority of prescribed health-related functions of theirs, |
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(d) as to the provision of staff, goods, services or accommodation in connection with any arrangements mentioned in paragraph (a), (b) or (c), |
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(e) as to the making of payments by a local authority to an NHS body in connection with any arrangements mentioned in paragraph (b), |
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(f) as to the making of payments by an NHS body to a local authority in connection with any arrangements mentioned in paragraph (c). |
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(3) Regulations under this section may make provision-
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(a) as to the cases in which NHS bodies and local authorities may enter into prescribed arrangements, |
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(b) as to the conditions which must be satisfied in relation to prescribed arrangements (including conditions in relation to consultation), |
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(c) for or in connection with requiring the consent of the Secretary of State to the operation of prescribed arrangements (including provision in relation to applications for consent, the approval or refusal of such applications and the variation or withdrawal of approval), |
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(d) in relation to the duration of prescribed arrangements, |
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(e) for or in connection with the variation or termination of prescribed arrangements, |
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(f) as to the responsibility for, and the operation and management of, prescribed arrangements, |
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(g) as to the sharing of information between NHS bodies and local authorities. |
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(4) The provision which may be made by virtue of subsection (3)(f) includes provision in relation to-
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(a) the formation and operation of joint committees of NHS bodies and local authorities, |
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(b) the exercise of functions which are the subject of prescribed arrangements (including provision in relation to the exercise of such functions by joint committees or employees of NHS bodies and local authorities), |
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(c) the drawing up and implementation of plans in respect of prescribed arrangements, |
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(d) the monitoring of prescribed arrangements, |
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(e) the provision of reports on, and information about, prescribed arrangements, |
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(f) complaints and disputes about prescribed arrangements, |
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(g) accounts and audit in respect of prescribed arrangements. |
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(5) Any arrangements made by virtue of this section shall not affect-
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(a) the liability of NHS bodies for the exercise of any of their functions, |
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(b) the liability of local authorities for the exercise of any of their functions, or |
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(c) any power or duty to recover charges in respect of services provided in the exercise of any local authority functions. |
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(6) The Secretary of State may issue guidance to NHS bodies and local authorities in relation to consultation or applications for consent in respect of prescribed arrangements.
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(7) The reference in subsection (1) to an improvement in the way in which functions are exercised includes an improvement in the provision to any individuals of any services to which those functions relate.
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(8) In this section-
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"health-related functions", in relation to a local authority, means functions of the authority which, in the opinion of the Secretary of State- |
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(i) have an effect on the health of any individuals,
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(ii) have an effect on, or are affected by, any functions of NHS bodies, or
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(iii) are connected with any functions of NHS bodies,
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"local authority" means a district council, county council, county borough council, London borough council or the Common Council of the City of London, |
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"NHS body" means a Health Authority, Primary Care Trust or NHS trust, |
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"prescribed" means prescribed to any extent by regulations made by the Secretary of State. |
| Joint consultative committees. |
32. In section 22 of the 1977 Act (co-operation between health authorities and local authorities), subsections (2) to (6) (which make provision in relation to joint consultative committees) are omitted.
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Control of prices of medicines and profits |
| Powers relating to voluntary schemes. |
33. - (1) The powers conferred by this section may be exercised where there is in existence a scheme (referred to in this section and sections 34 and 35 as a voluntary scheme) made by the Secretary of State and the industry body for the purpose of-
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(a) limiting the prices which may be charged by any manufacturer or supplier to whom the scheme relates for the supply of any health service medicines, or |
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(b) limiting the profits which may accrue to any manufacturer or supplier to whom the scheme relates in connection with the manufacture or supply of any health service medicines. |
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(2) For the purposes of this section and sections 34 and 35, a voluntary scheme is to be treated as applying to a manufacturer or supplier to whom it relates if-
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(a) he has consented to the scheme being so treated (and has not withdrawn that consent), and |
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(b) no notice is in force in his case under subsection (5). |
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(3) For the purposes of this section a voluntary scheme has effect, in relation to a manufacturer or supplier to whom it applies, with any additions or modifications made by him and the Secretary of State.
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(4) If, in the opinion of the Secretary of State, any acts or omissions of any manufacturer or supplier to whom a voluntary scheme applies (a "scheme member") have shown that, in the scheme member's case, the scheme is ineffective for either of the purposes mentioned in subsection (1), the Secretary of State may give written notice of that fact to the scheme member stating his reasons.
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(5) If, after the Secretary of State has given the scheme member an opportunity to make representations about the acts or omissions in question, he continues to be of that opinion, he may by a further written notice given to the scheme member (and stating his reasons) determine that the scheme should cease to apply in the scheme member's case.
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(6) Consent under subsection (2)(a) must be given, or withdrawn, in the manner required by the Secretary of State.
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(7) The Secretary of State may require any manufacturer or supplier to whom a voluntary scheme applies to-
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(a) record and keep any information, and |
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(b) provide any information to the Secretary of State, |
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which the Secretary of State may require for the purpose of enabling the scheme to operate or facilitating its operation or for the purpose of giving full effect to any provision made under subsection (8).
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(8) The Secretary of State may-
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(a) prohibit any manufacturer or supplier to whom a voluntary scheme applies from increasing any price charged by him for the supply of any health service medicine covered by the scheme without the approval of the Secretary of State, and |
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(b) provide for any amount representing any increase in contravention of that prohibition in the sums charged by that person for that medicine, so far as the increase is attributable to supplies to the health service, to be paid to the Secretary of State within a specified period. |
| Power to control prices. |
34. - (1) The Secretary of State may, after consultation with the industry body-
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(a) limit any price which may be charged by any manufacturer or supplier for the supply of any health service medicine, and |
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(b) provide for any amount representing sums charged by that person for that medicine in excess of the limit, so far as those sums are attributable to supplies to the health service, to be paid to the Secretary of State within a specified period. |
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(2) The powers conferred by this section are not exercisable at any time in relation to a manufacturer or supplier to whom at that time a voluntary scheme applies.
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| Statutory schemes. |
35. - (1) The Secretary of State may, after consultation with the industry body, make a scheme (referred to in this section and section 36 as a statutory scheme) for the purpose of-
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(a) limiting the prices which may be charged by any manufacturer or supplier for the supply of any health service medicines, or |
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(b) limiting the profits which may accrue to any manufacturer or supplier in connection with the manufacture or supply of any health service medicines. |
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(2) A statutory scheme may, in particular, make any provision mentioned in subsections (3) to (6).
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(3) The scheme may require any manufacturer or supplier to whom it applies to-
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(a) record and keep information, and |
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(b) provide information to the Secretary of State. |
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(4) The scheme may provide for any amount representing sums charged by any manufacturer or supplier to whom the scheme applies, in excess of the limits determined under the scheme, for health service medicines covered by the scheme, so far as those sums are attributable to supplies to the health service, to be paid by that person to the Secretary of State within a specified period.
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(5) The scheme may provide for any amount representing the profits, in excess of the limits determined under the scheme, accruing to any manufacturer or supplier to whom the scheme applies in connection with the manufacture or supply of health service medicines covered by the scheme, so far as those profits are attributable to supplies to the health service, to be paid by that person to the Secretary of State within a specified period.
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(6) The scheme may-
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(a) prohibit any manufacturer or supplier to whom the scheme applies from increasing, without the approval of the Secretary of State, any price charged by him for the supply of any health service medicine covered by the scheme, and |
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(b) provide for any amount representing any increase in contravention of that prohibition in the sums charged by that person for that medicine, so far as the increase is attributable to supplies to the health service, to be paid to the Secretary of State within a specified period. |
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(7) A statutory scheme may not apply to a manufacturer or supplier to whom a voluntary scheme applies.
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