Select Committee on Health Appendices to the Minutes of Evidence


APPENDIX 10

Memorandum by South Peterborough NHS Primary Care Group (GD13)

1.  INTRODUCTION

  1.1  South Peterborough Primary Care Group has responsibility for prescribing by General Practitioners for a population of 90,000 in the South Peterborough area including Yaxley, Oundle, Wansford, Whittlesey and Thorney. There are 12 practices including seven dispensing practices.

  1.2  The Prescribing Manager for the Primary Care Group has been working with the General Practitioners and Finance colleagues to identify the reasons for the increased expenditure in the drug budget observed particularly in the quarter April to June 1999.

2.  IMPACT OF THE SUPPLY SHORTAGES FOR GENERICS

  2.1  Drugs which have been in short supply resulting in variable prices have been included in Category D, a special category which will ensure that they are priced correctly according to the manufacturer and pack size. They are not reimbursed to dispensing pharmacists and GPs at basic list price.

  2.2  In October 1999, the PPA issued a list of the drugs included in Category D for each month from March 1998 to September 1999. This list was previously unavailable.

  2.3  The PCG has carried out an analysis of the cost of Category D drugs for the quarter from April to June 1999 compared to the same quarter in 1998. The analysis showed that the cost of category D drugs had increased by approximately 2 per cent during this period.

  2.4  If the increase were projected to the end of March 2000, it would amount to approximately £130,000 out of a budget of £7.5 million.

  2.5  This increased cost was not accounted for by an increase in the number of prescriptions dispensed during the period.

  2.6  The analysis is preliminary and does not account for drugs that were not available as generics and were dispensed and reimbursed as brands. This particularly applies to prescriptions dispensed by dispensing doctors.

  2.7  The information available from the PPA fails to inform the PCG of the reasons for drugs being added to the Category D list. The analysis of the impact of Category D drugs cannot therefore take account of increased costs associated with new patient packs and general increases in the price of generic drugs unless the drugs were listed as category D.

  2.8  The PPA has indicated that the number of drugs listed in category D has risen from 138 in June 1999 to 190 by September 1999. The late receipt of monthly prescribing figures and information from the PPA is delaying the ability of the PCG to quantify the extent of the problem and take appropriate action to address the escalating costs.

3.  RECOMMENDATIONS TO THE HEALTH COMMITTEE

  3.1  Health Authorities and Primary Care Groups should be given information on the timescale and anticipated impact of the supply problem for generic drugs.

  3.2  Additional funding should be made available to Health Authorities and Primary Care Groups to meet the current and anticipated costs of the generic drugs supply problem and the patient pack initiative.


 
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Prepared 21 December 1999