The pharmaceutical contract review group had made recommendations for improving the contracting process for generic products, which were now being implemented, said Mr PETER SHAROTT (pharmaceutical adviser, NHSE London region).
It was important to be able to guarantee that the right products arrived in the right place at the right time (and at the right price).
The group had made recommendations that included scheduling of contracts so that tenders were sought every four months on a two-year programme, and the creation of a pharmaceutical market support group (PMSG) to provide strategic advice on contracting to local groups. In addition, NHS trusts were now required to adopt a good practice guide for contracting of pharmaceuticals.
The PMSG would be charged with finding out when critical generic product shortages were likely to occur and to propose and co-ordinate preventative measures.
In addition, the PMSG would prevent potential market monopolies, assist in managing contracts for branded products that had lost their patent, develop strategies to prevent unsuccessful suppliers from undermining contracts and inform new and existing suppliers about the contracting process.
Mr DAVID SAMWAYS (pharmacy services director, East Gloucestershire NHS trust) described the advantages of selective, competitive tendering. By tendering in a rolling two-year fashion, the amount of administration required from trusts and pharmaceutical companies could be reduced, contract adjudication could be more focused (as the number of products being dealt with at any one time would be smaller) and longer term contracts could be set up, which would provide stability and continuity of supply. An additional benefit was that by scrutinising contracts in this way, the impact of contract changes on primary care could be taken into consideration, he said.
Once this strategy had been adopted, local purchasing groups would be required to develop: a local procurement strategy; a description of the local adjudication processes; a strategy for providing accurate dosage data and a formal process for recording adjudication committee decisions. Many purchasing groups already had these but not in a documented form, Mr Samways said.
The good practice guide for contracting was described by Mr KEVAN WIND (procurement specialist pharmacist, London and Eastern regions). The guide applied to everyone involved in the contracting process, such as NHS trust staff, the Purchasing and Supply Agency (PASA), the pharmaceutical industry and wholesalers.
It had been submitted for comment to the Association of the British Pharmaceutical Industry and to industry representatives.
The guide required that NHS trusts and contracting groups used suitably trained staff to tender for products and provided usage information to support the contracting process. Additional requirements included that they should comply with purchasing decisions, notify suppliers of significant changes in demand as soon as possible, provide feedback to the PASA on supplier quality and performance and maintain confidentiality between suppliers.
Pharmaceutical companies had to tender realistic and sustainable prices, only to tender for items that would be available throughout the contract period, provide details of the contract to distributors and wholesalers, and give warning to the NHS of supply problems.
The PASA was required to collect accurate usage information to support the contracting process, comply with the agreed contracting process and timetable, maintain confidentiality between suppliers, manage complaints and provide unsuccessful tenderers with feedback.