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The Pharmaceutical Journal Vol 265 No 7117 p525
October 07, 2000 The Conference

Controlling drug budgets and changing prescribing habits

External influences on drug costs

The use of new and existing drugs in individual practices is determined by the prescribing culture among the prescribers, said Dr JIM SMITH (pharmaceutical adviser, Northern and Yorkshire regional office, NHSE).
General practitioners who used many new drugs tended to be less critical than others were and assessed the evidence about the drugs less.
Prescribing indicators raised questions about the culture and prescribing of practices. They had been used for some time as a management tool and were not ideal but were the best measure that there was at the moment.
Other things that would have an effect on prescribing were the national service frameworks, the National Institute of Clinical Excellence, the national plan and the development of primary care trusts. Effective prescribing was being encouraged by these and by the National Prescribing Centre and unified drug budgets.
The Government had indicated that it was desirable to obtain value for money for the National Health Service, while keeping a strong and competitive pharmaceutical industry. Local forums, such as drug and therapeutics committees, were also important in making and implementing decisions about drugs.
In Northern and Yorkshire region, drug budgets were being controlled locally by the production of guidelines, imaginative use of incentives, promotion of generic prescribing and good use of prescribing indicators. Collaborations between health authorities on policies relating to new drugs had begun, primary care trusts were being set up and a regional performance management scheme was in place.

Local prescribing patterns
Dr Smith then showed the audience the prescribing costs both for Northern and Yorkshire region and for England as a whole over the period 1992-2000 and he explained the fluctuations in the figures (see Figure 1).
Prescribing costs had fallen steadily in both Northern and Yorkshire region and England until 1996. The rise in cost seen between 1996 and 1998 had been caused by growth in the use of effective but expensive drugs, such as proton-pump inhibitors, statins and selective serotonin reuptake inhibitors, Dr Smith said. However, prescribing costs had decreased again and had reached an all-time low by 1999.
A doubling of expenditure on generic products brought about by recent price increases had resulted in prescribing costs for 2000 in both Northern and Yorkshire region and England being even higher than those for 1992.
Dr Smith then showed the prescribing cost figures for individual practices in Northern and Yorkshire region for the two periods 1998-99 and 1999-2000. During the first period, the majority of practices were underspent. In contrast, between 1999 and 2000, all had overspent their budgets.
These figures also demonstrated the dramatic change in prescribing costs that had taken place over the period 1998 to 2000.
This showed that, however carefully prescribing budgets were controlled, the figures could be ruined by factors over which there was no control, he said.