National Health Service (Wales) Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

National Health Service (Wales) Bill [HL]

National Health Service (Wales) Bill [HL]
Schedule 7 — LPS schemes
167

      (2)
A proposed participant in a pilot scheme (other than the Local Health Board
concerned) may withdraw at any time before the proposals relating to him
are implemented.
      (3)
A pilot scheme, as implemented, may differ from the proposals for the
scheme approved by the Welsh Ministers only if they agree to the variation
5
or—
(a)
directions given by them (either under sub-paragraph (1) or
generally) authorise variations that satisfy specified requirements,
and
(b)
the variation satisfies those requirements.
10
      (4)
As soon as is reasonably practicable after implementing proposals for a pilot
scheme, the Local Health Board concerned must (in accordance with any
directions given to it by the Welsh Ministers) publish details of the scheme.
Schedule 7
Section 102

LPS schemes
15
Provision of local pharmaceutical services
1     (1)
Local Health Boards may establish LPS schemes.
      (2)
In this Act, an “LPS scheme” means one or more agreements—
(a)
made by a Local Health Board in accordance with this Schedule,
(b)
under which local pharmaceutical services will be provided
20
(otherwise than by the Local Health Board), and
(c)
the parties to which do not include any other Local Health Board.
      (3)
An LPS scheme may include arrangements—
(a)
for the provision of services which are not local pharmaceutical
services, but which may be provided under this Act, other than
25
under Part 6 or Chapter 1 of this Part, and whether or not of the kind
usually provided by pharmacies,
(b)
for the provision of training and education (including training and
education for persons who are, or may become, involved in the
provision of local pharmaceutical services).
30
      (4)
An LPS scheme may not combine arrangements for the provision of local
pharmaceutical services with arrangements for the provision of primary
medical services or primary dental services.
      (5)
In determining the arrangements it needs to make in order to comply with
section 80, a Local Health Board may take into account arrangements under
35
an LPS scheme made by it.
      (6)
The functions of an NHS trust and an NHS foundation trust include power
to provide any services to which an LPS scheme applies.
      (7)
In this Schedule—
”local pharmaceutical services” means such services of a kind which
40
may be provided under section 80, or by virtue of section 81 (other

National Health Service (Wales) Bill [HL]
Schedule 7 — LPS schemes
168

than practitioner dispensing services) as may be prescribed for the
purposes of this Schedule, and
“LP services” means services provided under an LPS scheme (including
any services to which the scheme applies as a result of sub-paragraph
(3)).
5
      (8)
“Practitioner dispensing services” means the provision of drugs, medicines
or listed appliances (within the meaning of section 80) by a medical
practitioner or dental practitioner to a patient of his pursuant to
arrangements made by virtue of section 86(1).
Designation of priority neighbourhoods or premises
10
2     (1)
The Welsh Ministers may make regulations allowing a Local Health Board
to designate—
(a)
neighbourhoods,
(b)
premises, or
(c)
descriptions of premises,
15

for the purposes of this paragraph.
      (2)
The regulations may, in particular, make provision—
(a)
as to the circumstances in which, and the neighbourhoods or
premises in relation to which, designations may be made or
maintained,
20
(b)
allowing a Local Health Board to defer consideration of
pharmaceutical list applications relating to neighbourhoods,
premises or descriptions of premises that have been designated,
(c)
allowing a designation to be cancelled in prescribed circumstances,
(d)
requiring a designation to be cancelled—
25
(i)
if the Welsh Ministers give a direction to that effect, or
(ii)
in prescribed circumstances.
      (3)
“Pharmaceutical list applications” means applications for inclusion in a
pharmaceutical list.
Regulations
30
3     (1)
The Welsh Ministers may make regulations with respect to LP services.
      (2)
The regulations must include provision for participants other than Local
Health Boards to withdraw from an LPS scheme if they wish to do so.
      (3)
The regulations may, in particular—
(a)
provide that an LPS scheme may be made only—
35
(i)
in prescribed circumstances,
(ii)
in relation to an area, a community or a category of persons
determined in accordance with the regulations, or
(iii)
in relation to premises determined in accordance with the
regulations,
40
(b)
provide that only prescribed services, or prescribed categories of
service, may be provided in accordance with an LPS scheme,
(c)
make provision as to the services, or categories of service, for which
an LPS scheme must provide,

National Health Service (Wales) Bill [HL]
Schedule 8 — Further provision about the expenditure of Local Health Boards
169

(d)
impose conditions (including conditions as to qualifications and
experience) to be satisfied by persons providing LP services,
(e)
require details of each LPS scheme to be published,
(f)
make provision with respect to the variation and termination of an
LPS scheme,
5
(g)
prevent (except in such circumstances and to such extent as may be
prescribed) the provision of both LP services and pharmaceutical
services from the same premises,
(h)
make provision with respect to the inclusion, removal, re-inclusion
or modification of an entry in respect of premises in a pharmaceutical
10
list,
(i)
provide for parties to an LPS scheme to be treated, in such
circumstances and to such extent as may be prescribed, as health
service bodies for the purposes of section 7,
(j)
provide for directions, as to payments, made under section 7(11) (as
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it has effect as a result of regulations made by virtue of paragraph (i))
to be enforceable in a county court (if the court so orders) as if they
were judgments or orders of that court,
(k)
authorise Local Health Boards to make payments of financial
assistance for prescribed categories of preparatory work
20
undertaken—
(i)
in connection with preparing proposals for an LPS scheme, or
(ii)
in preparation for the provision of services under a proposed
LPS scheme.
Schedule 8
25
Section 177

Further provision about the expenditure of Local Health Boards
General ophthalmic and pharmaceutical services expenditure
1     (1)
In section 174 to 176 and this Schedule, “general ophthalmic and
pharmaceutical services expenditure” means expenditure of a Local Health
Board which—
30
(a)
is attributable to the payment of remuneration to persons providing
services under Part 6 (ophthalmic services) or Chapter 1 of Part 7
(pharmaceutical services), and
(b)
is not excluded by sub-paragraph (2).
      (2)
Expenditure is excluded if it is attributable to—
35
(a)
the reimbursement of expenses of persons providing services as
mentioned in sub-paragraph (1)(a) which are designated expenses
incurred in connection with the provision of the services (or in giving
instruction in matters relating to the services),
(b)
remuneration referable to the cost of drugs, or
40
(c)
remuneration paid to persons providing additional pharmaceutical
services (in accordance with directions under section 81), in respect
of such of those services as are designated.

National Health Service (Wales) Bill [HL]
Schedule 8 — Further provision about the expenditure of Local Health Boards
170

Main expenditure
2     (1)
In section 174 “main expenditure”, in relation to a Local Health Board and
the year in question, means—
(a)
expenditure of the Local Health Board mentioned in sub-paragraph
(2),
5
(b)
any other expenditure of the Local Health Board attributable to the
performance of its functions in that year (other than general
ophthalmic and pharmaceutical services expenditure and
remuneration referable to the cost of drugs), and
(c)
expenditure attributable to remuneration referable to the cost of
10
drugs for which the Local Health Board is accountable in that year
(whether paid by it or by another Board).
      (2)
The expenditure is expenditure attributable to—
(a)
the reimbursement in that year of expenses of persons providing
services as mentioned in paragraph 1(1)(a) which are designated
15
expenses incurred in connection with the provision of the services
(or in giving instruction in matters relating to the services), or
(b)
remuneration paid in that year to persons providing additional
pharmaceutical services (in accordance with directions under section
81), in respect of such of those services as are designated.
20
3     (1)
For each financial year, the Welsh Ministers must apportion among all Local
Health Boards, in such manner as they consider appropriate, the total of the
remuneration referable to the cost of drugs which is paid by each Local
Health Board in that year.
      (2)
A Local Health Board is accountable in any year for remuneration referable
25
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 Local Health Board is accountable is paid by another Local
Health Board, the remuneration must be treated (for the purposes of sections
30
174 and 175) as having been paid by the first Local Health Board in the
performance of its functions.
      (4)
The Welsh Ministers may, in particular, exercise their discretion under sub-
paragraph (1)—
(a)
so that any apportionment reflects, in the case of each Local Health
35
Board, the financial consequences of orders for the provision of
drugs, being orders which in the opinion of the Welsh Ministers are
attributable to the Board in question,
(b)
by reference to averaged or estimated amounts.
      (5)
The Welsh Ministers may make provision for any remuneration referable to
40
the cost of drugs which is paid by a Local Health Board other than the Board
which is accountable for the payment to be reimbursed in such manner as
the Welsh Ministers may determine.
Interpretation
4     (1)
In this Schedule—
45
“designated” means designated in writing by the Welsh Ministers (and
different designations may be made for different purposes),

National Health Service (Wales) Bill [HL]
Schedule 9 — Accounts and audit
171

“drugs” includes medicines and listed appliances (within the meaning
given by section 80),
“pharmaceutical services” does not include additional pharmaceutical
services,
“remuneration referable to the cost of drugs” includes (except in
5
paragraph 1(2)(b) and subject to sub-paragraph (2)) remuneration
payable to persons providing local pharmaceutical services.
      (2)
The Welsh Ministers must determine what remuneration paid by Local
Health Boards to persons providing pharmaceutical services or local
pharmaceutical services must be treated for the purposes of this Schedule as
10
remuneration referable to the cost of drugs.
      (3)
The Welsh Ministers may treat all remuneration paid by Local Health
Boards to such persons, so far as it is met by an NHS trust under section
180(4), as remuneration referable to the cost of drugs for those purposes.
Schedule 9
15
Section 178

Accounts and audit
NHS bodies
1
The following are NHS bodies for the purposes of this Schedule—
(a)
any Special Health Authority performing functions only or mainly in
respect of Wales,
20
(b)
any Local Health Board,
(c)
any NHS trust all or most of whose hospitals, establishments and
facilities are situated in Wales,
(d)
any trustees for such an NHS trust appointed in pursuance of
paragraph 10 of Schedule 3,
25
(e)
any special trustees appointed as mentioned in section 160(1) for a
trust all or most of whose hospitals, establishments and facilities are
situated in Wales.
Accounts to be kept by NHS bodies
2     (1)
Each NHS body must keep proper accounts and proper records in relation
30
to the accounts.
      (2)
If the Welsh Ministers so direct with the approval of the Treasury, the
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 6(2).
35
Preparation of annual accounts
3     (1)
Each NHS body must prepare in respect of each financial year annual
accounts in such form as the Welsh Ministers may direct with the approval
of the Treasury.
      (2)
This paragraph is subject to paragraph 6(3).
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National Health Service (Wales) Bill [HL]
Schedule 9 — Accounts and audit
172

Transmission of annual accounts
4
Section 61(1) of the Public Audit (Wales) Act 2004 (c. 23) (audit of Welsh
NHS bodies) makes provision for the annual accounts of Welsh NHS bodies
to be submitted to the Auditor General for Wales in order for them to be
examined by him.
5
Summarised accounts of NHS bodies
5     (1)
This paragraph applies in relation to NHS bodies that are not Special Health
Authorities.
      (2)
The Welsh Ministers must prepare summarised accounts relating to such
bodies in respect of each financial year.
10
      (3)
Sub-paragraph (2) is subject to paragraphs 6(3) and 7(2).
      (4)
The summarised accounts must be prepared in such form as the Treasury
may direct.
      (5)
The Welsh Ministers must transmit the summarised accounts to the Auditor
General for Wales not later than the end of the month of November
15
following the financial year to which they relate.
      (6)
The Auditor General for Wales must —
(a)
examine and certify the summarised accounts, and
(b)
send copies of them and his report on them to the Welsh Ministers.
      (7)
This paragraph has effect subject to any provision made under section 14(1)
20
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
6     (1)
For the purposes of this paragraph a “relevant charitable trust”, in relation
to an NHS body, means a charitable trust whose trustee or trustees is or are
25
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.
      (3)
Nothing in paragraph 3 or 5, so far as it applies to an NHS body of any
30
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
7     (1)
For the purposes of this paragraph a “relevant non-charitable trust”, in
relation to an NHS body, means a trust which is not a charitable trust and
35
whose trustee or trustees is or are that body.
      (2)
Nothing in paragraph 5, so far as it applies 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.