NHS Faces Drugs Bill Rise

NHS faces 'significant risk' of drugs bill rise

Medicine distribution arrangements could result in an NHS drugs bill running into hundreds of millions of pounds, a report by the Office of Fair Trading (OFT) has stated.

The study looked at new and proposed medicine distribution arrangements, known as "direct to pharmacy" (DTP) schemes. It also considered the impact of Pfizer's, the world's biggest pharmaceutical firm, exclusive DTP scheme with medical distributor UniChem.

John Fingleton, chief executive of the OFT, said changes to the distribution of medicines "have given rise to real concerns".

The NHS currently spends around £6bn a year on branded prescription medicines dispensed by retail pharmacies, but until recently these were distributed through a number of competing wholesalers.

DTP schemes allow manufacturers to increase the prices paid by pharmacies and to control the delivery for the distribution of their medicines.

The report said the Department of Health should make changes to ensure that NHS medicines costs do not increase as a result of changes in distribution. It also recommended that the government ensures manufacturers adopt minimum service standards.

"Further action is needed to prevent increases in NHS medicines costs and to ensure service standards pharmacies to patients are of a satisfactory standard," said Fingleton.

The Health Insurance magazine: November 2007