Select Committee on Health Appendices to the Minutes of Evidence


APPENDIX 3

Letter from the Chairman of Pharmaceutical Services Negotiating Committee to the Clerk of the Committee (GD 8A)

  At the evidence session on 4 November 1999, the Chairman of the Select Committee invited the witnesses present to put forward additional or supplementary written evidence should they feel it to be appropriate.

  The purpose of my writing again to the Select Committee is to comment upon the verbal evidence given by the Minister of State, Mr. John Denham MP. Clearly I have not had the benefit of seeing a transcript of proceedings. Nevertheless, there were two issues raised by the Minister to which I must respond, namely the alleged failure of the PSNC to respond to proposals from the Department of Health with regard to Category D items and the failure of all parties to agree to appropriate transitional arrangements for the implementation of patient packs in an orderly manner.

  Having now had the opportunity to study the memorandum prepared for the Select Committee by the Department of Health I am reassured by the absence of any mention of those two aspects within the memorandum and I am glad to confirm that the PSNC is broadly in agreement with everything contained in that memorandum.

CATEGORY D—PROPOSALS FROM THE DEPARTMENT OF HEALTH

  It would be wrong for the Committee to assume, from comments made at the session on 4 November, that PSNC has failed to respond to the Department's proposals regarding Category D. For sometime, PSNC and the Department of Health have been discussing how the difficulties that have arisen might be eased by a change to the Category D arrangements. Both the Department and the PSNC agree that the arrangements must be fair to Government and to pharmacists and ensure continuing supply of medicines to patients. The discussions have hinged around the definition of what constitutes a shortage of medicines. Following correspondence and several meetings, the Department wrote to the PSNC with its definitive proposals for change on 22 October and requested a response by 28 October. PSNC officers replied on 3 November confirming that the Department's proposals would be put to the next meeting of the PSNC scheduled for 10 November and, in the meantime, requested clarification on several issues. We anticipate reaching agreement with the Department on its interim proposals for amending Category D very shortly.

PATIENT PACKS

  When addressing the subject of patient packs I was surprised that the Minister said that the discussions which had taken place between the Department and the other parties did not centre on the transitional arrangements and how the market would react.

  I attended all of the meetings during the last phase of the discussions and confirm that, whilst the discussions did not finalise every detail of the transfer to patient packs, broad agreement was reached by all parties on most of the issues. In particular, all parties accepted that there would be an ordered phasing out of bulk supplies according to an agreed timetable. Indeed, details of the transitional process was not only agreed but was committed to print in the form of an agreed press release which was issued to the profession and was to be backed up by a publicity campaign. The reason for the discontinuation of the discussions was the view of Ministers that the cost (estimated at £20 million) would be too high a price to pay for the introduction of patient packs. As a result of this any movement towards patient packs has been left to the market place with the result that both bulk medicines and patient packs may be available for any product. Had the phasing proposals which had been agreed been implemented bulk supplies would have been phased out and the current diffculties, in all probability, been avoided.

  I hope the Committee finds this useful. If I can be of any further assistance, please do not hesitate to contact me.

8 November 1999


 
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