National Health Service Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

National Health Service Bill [HL]

National Health Service Bill [HL]
Schedule 14 — Further provision about the expenditure of Primary Care Trusts
237

(c)
expenditure attributable to remuneration referable to the cost of
drugs for which the Primary Care Trust is accountable in that year
(whether paid by it or by another Primary Care Trust).
      (2)
The expenditure is expenditure attributable to—
(a)
the reimbursement in that year of expenses of persons providing
5
pharmaceutical services which are designated expenses incurred in
connection with the provision of those services (or in giving
instruction in matters relating to those services), or
(b)
remuneration paid in that year to persons providing additional
pharmaceutical services (in accordance with directions under section
10
127), in respect of such of those services as are designated.
3     (1)
For each financial year, the Secretary of State must apportion among all
Primary Care Trusts, in such manner as he considers appropriate, the total
of the remuneration referable to the cost of drugs which is paid by each
Primary Care Trust in that year.
15
      (2)
A Primary Care Trust is accountable in any year for remuneration referable
to the cost of drugs to the extent (and only to the extent) that such
remuneration is apportioned to it under sub-paragraph (1).
      (3)
Where in any financial year any remuneration referable to the cost of drugs
for which a Primary Care Trust is accountable is paid by another Primary
20
Care Trust, the remuneration must be treated (for the purposes of sections
228 and 229) as having been paid by the first Primary Care Trust in the
performance of its functions.
      (4)
The Secretary of State may, in particular, exercise his discretion under sub-
paragraph (1)—
25
(a)
so that any apportionment reflects, in the case of each Primary Care
Trust, the financial consequences of orders for the provision of
drugs, being orders which in his opinion are attributable to the
Primary Care Trust in question,
(b)
by reference to averaged or estimated amounts.
30
      (5)
The Secretary of State may make provision for any remuneration referable
to the cost of drugs which is paid by a Primary Care Trust other than the
Primary Care Trust which is accountable for the payment to be reimbursed
in such manner as he may determine.
Interpretation
35
4     (1)
In this Schedule—
“designated” means designated in writing by the Secretary of State
(and different designations may be made for different purposes),
“drugs” includes medicines and listed appliances (within the meaning
given by section 126),
40
“pharmaceutical services” does not include additional pharmaceutical
services,
“remuneration referable to the cost of drugs” includes (except in
paragraph 1(2)(b) and subject to sub-paragraph (2)) remuneration
payable to persons providing local pharmaceutical services.
45
      (2)
The Secretary of State must determine what remuneration paid by Primary
Care Trusts to persons providing pharmaceutical services or local

National Health Service Bill [HL]
Schedule 15 — Accounts and audit
238

pharmaceutical services must be treated for the purposes of this Schedule as
remuneration referable to the cost of drugs.
      (3)
The Secretary of State may treat all remuneration paid by Primary Care
Trusts to such persons, so far as it is met by an NHS trust or an NHS
foundation trust under section 234(4), as remuneration referable to the cost
5
of drugs for those purposes.
Schedule 15
Section 232

Accounts and audit
NHS bodies
1     (1)
The following are NHS bodies for the purposes of this Schedule—
10
(a)
any Strategic Health Authority,
(b)
any Special Health Authority to which sub-paragraph (2) applies,
(c)
any Primary Care Trust,
(d)
any NHS trust all or most of whose hospitals, establishments and
facilities are situated in England,
15
(e)
any trustees for such an NHS trust appointed under paragraph 10 of
Schedule 4,
(f)
any special trustees appointed as mentioned in section 212(1) for a
trust all or most of whose hospitals, establishments and facilities are
situated in England,
20
(g)
any trustees for a Primary Care Trust appointed under paragraph 12
of Schedule 3.
      (2)
This sub-paragraph applies to any Special Health Authority which—
(a)
performs functions only or mainly in respect of England, or
(b)
neither performs functions only or mainly in respect of England, nor
25
performs functions only or mainly in respect of Wales.
Accounts to be kept by NHS bodies
2     (1)
Each NHS body must keep proper accounts and proper records in relation
to the accounts.
      (2)
If the Secretary of State so directs with the approval of the Treasury, the
30
accounts of any such body of a description specified in the direction must be
kept in such form as is so specified.
      (3)
This paragraph is subject to paragraph 8(2).
Preparation of annual accounts
3     (1)
Each NHS body must prepare in respect of each financial year annual
35
accounts in such form as the Secretary of State may direct with the approval
of the Treasury.
      (2)
This paragraph is subject to paragraph 8(3).

National Health Service Bill [HL]
Schedule 15 — Accounts and audit
239

Auditing of accounts of certain NHS bodies
4     (1)
This paragraph applies to any NHS body that is not a Special Health
Authority (as to which, see paragraph 6).
      (2)
Any annual accounts prepared by any such body under paragraph 3 must
be audited in accordance with the Audit Commission Act 1998 (c. 18) by an
5
auditor or auditors appointed by the Audit Commission (see section 2(1)(b)
of that Act).
      (3)
The Comptroller and Auditor General may examine—
(a)
any such accounts and any records relating to them, and
(b)
any report on them by the auditor or auditors.
10
      (4)
“The Audit Commission” means the Audit Commission for Local
Authorities and the National Health Service in England and Wales.
Transmission of annual accounts
5     (1)
Each NHS body that is not a Special Health Authority must send a copy of
any accounts of the body audited as mentioned in paragraph 4(2) to the
15
Secretary of State by the specified date.
      (2)
If the body is a Primary Care Trust, it must also send a copy of any such
accounts to any Strategic Health Authority whose area includes any part of
the Primary Care Trust’s area.
      (3)
Each Special Health Authority that is an NHS body must send copies of any
20
annual accounts prepared by it under paragraph 3—
(a)
to the Secretary of State by the specified date, and
(b)
to the Comptroller and Auditor General as soon as is reasonably
practicable following the end of the financial year in question.
      (4)
The “specified date”, in relation to a financial year, means such date as the
25
Secretary of State may direct in relation to that year.
Auditing of certain Special Health Authority accounts by Comptroller and Auditor General
6     (1)
This paragraph applies where a Special Health Authority that is an NHS
body sends a copy of its annual accounts to the Comptroller and Auditor
General under paragraph 5(3).
30
      (2)
The Comptroller and Auditor General must examine, certify and report on
the accounts.
      (3)
The Special Health Authority must lay before both Houses of Parliament—
(a)
a copy of the accounts, and
(b)
the Comptroller and Auditor General’s report on them.
35
Summarised accounts of NHS bodies other than Special Health Authorities
7     (1)
This paragraph applies in relation to NHS bodies that are not Special Health
Authorities.
      (2)
The Secretary of State must prepare summarised accounts relating to such
bodies in respect of each financial year.
40

National Health Service Bill [HL]
Schedule 16 — The Commission for Patient and Public Involvement in Health
240

      (3)
Sub-paragraph (2) is subject to paragraphs 8(3) and 9(2).
      (4)
The summarised accounts must be prepared in such form as the Treasury
may direct.
      (5)
The Secretary of State must transmit the summarised accounts to the
Comptroller and Auditor General not later than the end of the month of
5
November following the financial year to which they relate.
      (6)
The Comptroller and Auditor General must —
(a)
examine and certify the summarised accounts, and
(b)
lay copies of them and his report on them before both Houses of
Parliament.
10
      (7)
This paragraph has effect subject to any provision made under section 14(1)
of the Government Resources and Accounts Act 2000 (c. 20) (power to
disapply this paragraph in relation to specified bodies and years).
Exceptions for accounts of charitable trusts
8     (1)
For the purposes of this paragraph a “relevant charitable trust”, in relation
15
to an NHS body, means a charitable trust whose trustee or trustees is or are
that body.
      (2)
Nothing in paragraph 2, so far as it applies to an NHS body of any
description, has effect in relation to accounts relating to a relevant charitable
trust.
20
      (3)
Nothing in paragraph 3 or 7, so far as it applies to an NHS body of any
description, requires any annual or summarised accounts prepared by or in
relation to the body to include matters relating to a relevant charitable trust.
Exceptions for accounts of non-charitable trusts
9     (1)
For the purposes of this paragraph a “relevant non-charitable trust”, in
25
relation to an NHS body, means a trust which is not a charitable trust and
whose trustee or trustees is or are that body.
      (2)
Nothing in paragraph 7, so far as it relates to an NHS body of any
description, requires any summarised accounts prepared in relation to the
body to include matters relating to a relevant non-charitable trust.
30
Schedule 16
Section 243

The Commission for Patient and Public Involvement in Health
Status
1
The Commission for Patient and Public Involvement in Health (“the
Commission”) must not be regarded as the servant or agent of the Crown or
35
as enjoying any status, immunity or privilege of the Crown; and the
Commission’s property must not be regarded as property of, or property
held on behalf of, the Crown.

National Health Service Bill [HL]
Schedule 16 — The Commission for Patient and Public Involvement in Health
241

Powers
2     (1)
Subject to any directions given by the Secretary of State, the Commission
may do anything which appears to it to be necessary or expedient for the
purposes of or in connection with its functions.
      (2)
In particular it may—
5
(a)
acquire and dispose of property, and
(b)
enter into contracts.
Membership
3
The Commission consists of a chairman appointed by the Secretary of State,
and a number of other members.
10
Appointment, procedure etc
4     (1)
The Secretary of State may by regulations make provision as to—
(a)
the appointment of the chairman and other members of the
Commission (including the number, or limits on the number, of
members who may be appointed and any conditions to be fulfilled
15
for appointment, and the terms of their appointment),
(b)
the tenure of office of the chairman and other members of the
Commission (including circumstances in which they cease to hold
office or may be removed or suspended from office),
(c)
the appointment of, constitution of and exercise of functions by
20
committees and sub-committees of the Commission (including
committees and sub-committees which consist of or include persons
who are not members of the Commission),
(d)
the procedure of the Commission and any of its committees or sub-
committees (including the validation of proceedings in the event of
25
vacancies or defects in appointment).
      (2)
The regulations may, in particular, make provision to deal with cases where
the post of any officer of the Commission is held jointly by two or more
persons or where the functions of such an officer are in any other way
performed by more than one person.
30
5
The regulations may include provision applying, or corresponding to, any
provision of Part 5A of the Local Government Act 1972 (access to meetings
and documents), with or without modifications.
Remuneration and allowances
6     (1)
The Commission may pay to its chairman and to any other member such
35
remuneration and allowances as the Secretary of State may determine.
      (2)
The Commission may pay to any member of a committee or sub-committee
such allowances as the Secretary of State may determine.
      (3)
If the Secretary of State so determines, the Commission must pay, or make
provision for the payment of, such pension, allowance or gratuities as the
40
Secretary of State may determine to or in respect of a person who is or has
been the chairman or any other member of the Commission.

National Health Service Bill [HL]
Schedule 16 — The Commission for Patient and Public Involvement in Health
242

      (4)
If the Secretary of State determines that there are special circumstances that
make it right for a person ceasing to hold office as chairman of the
Commission to receive compensation, the Commission must pay to him
such compensation as the Secretary of State may determine.
Staff
5
7     (1)
There is a Chief Executive of the Commission who is an employee of the
Commission and is responsible to the Commission for the general exercise
of the Commission’s functions.
      (2)
The Chief Executive must be appointed by the Commission.
      (3)
The Commission may appoint such other employees as it considers
10
appropriate, on such terms and conditions as the Commission may
determine.
Delegation of functions
8
The Commission may arrange for the discharge of any of its functions by a
committee, sub-committee, member or employee of the Commission.
15
Assistance
9     (1)
The Commission may arrange for such persons as it considers appropriate
to assist it in the discharge of any of its functions.
      (2)
Such arrangements may include provision with respect to the payment of
remuneration and allowances to, or amounts in respect of, such persons.
20
Payments and loans to the Commission
10    (1)
The Secretary of State may make payments to the Commission of such
amounts, at such times and on such conditions (if any) as he considers
appropriate.
      (2)
The Secretary of State may make loans to the Commission on such terms
25
(including terms as to repayment and interest) as he may determine.
      (3)
The Secretary of State may give directions to the Commission as to the
application of any sums he pays it under sub-paragraph (1) or (2), and the
Commission must comply with any such directions.
Accounts and audit
30
11    (1)
The Commission must keep accounts in such form as the Secretary of State
may determine.
      (2)
The Commission must prepare annual accounts in respect of each financial
year in such form as the Secretary of State may determine.
      (3)
The Commission must send copies of the annual accounts to the Secretary of
35
State and the Comptroller and Auditor General within such period after the
end of the financial year to which the accounts relate as the Secretary of State
may determine.

National Health Service Bill [HL]
Schedule 17 — Exempt information relating to health services
Part 1 — Descriptions of exempt information
243

      (4)
The Comptroller and Auditor General must examine, certify and report on
the annual accounts and must lay copies of the accounts and of his report
before Parliament.
Reports and other information
12    (1)
The Commission must—
5
(a)
prepare a report in relation to its activities in each financial year,
(b)
as soon as possible after the end of each financial year, send a copy
of its report for that year to the Secretary of State,
(c)
publish any such report in whichever way the Commission
considers appropriate,
10
(d)
make such other reports to the Secretary of State, and supply to him
such information, as he may require.
      (2)
The Secretary of State must lay before Parliament any report he receives
under sub-paragraph (1)(b).
      (3)
The Secretary of State may make regulations providing for the Commission
15
to make other reports, in accordance with the regulations, to prescribed
persons or descriptions of person.
Application of seal and evidence
13
The application of the seal of the Commission must be authenticated by the
signature—
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(a)
of any member of the Commission, or
(b)
of any other person who has been authorised by the Commission
(whether generally or specifically) for that purpose.
14
A document purporting to be duly executed under the seal of the
Commission or to be signed on its behalf must be received in evidence and,
25
unless the contrary is proved, taken to be so executed or signed.
Schedule 17
Section 246

Exempt information relating to health services
Part 1
Descriptions of exempt information
30
1
Information relating to a particular employee, former employee or applicant
to become an employee of, or a particular office-holder, former office-holder
or applicant to become an office-holder under, a relevant body.
2
Information relating to any particular occupier or former occupier of, or
applicant for, accommodation provided by or at the expense of a relevant
35
body.
3
Information relating to any particular applicant for, or recipient or former
recipient of, any service provided by a relevant body.