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PJ Online homeThe Pharmaceutical Journal
Vol 273 No 7310 p141
31 July 2004

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Shake-up of Government bodies sees changes to pricing authority and counter fraud service

A shake-up of Department of Health “arm’s length” organisations was announced last week by Health Secretary John Reid. The move is expected to save the Government £500m, which will be reinvested in front line NHS staff.

The package of proposals, which are due to be brought in by 2008, will see a reduction in the arm’s length organisations from 38 to 20 with staff cuts of 25 per cent.

The key changes that affect pharmacy are the abolition of the Prescription Pricing Authority and the NHS Counter Fraud and Security Management Service.

PPA responsibilities will pass to the new NHS Business Authority which will be in charge of payments and transactions across the health service. The new body will also include a fraud unit responsible for national fraud issues and policy. The information analysis function of the PPA will go to the new Health and Social Care Information Centre.

The existing NHS Purchasing and Supply Agency (PASA) is to be transformed and in future will have the power to commission services from the NHS Business Authority. The new-look PASA will also be expected to help apply NHS procurement best practice in order to generate more savings.

The reorganisation plans, outlined in a Department of Health document entitled “Reconfiguring the Department of Health’s arm’s length bodies”, also spells the end of the Health Development Agency. The National Institute for Clinical Excellence will take on its functions and in future will have the job of evaluating the cost-effectiveness of public health interventions.

The roles and responsibilities of the National Patient Safety Agency, which is described in the DoH report as a “trailblazer”, are also being expanded (see Panel below).

NPSA role expanded

The NPSA will have a greater role to play in supporting NHS organisations concerned about poorly performing doctors and dentists but where intervention by the professional regulatory bodies is inappropriate. The agency will also in future be responsible for keeping a check on hospital food and hygiene and safe building design.

Responsibility for the national confidential enquiries will also be taken on by the NPSA and no longer be the remit of NICE.

The agency will become the national focus for medical ethics. It will in future support the development of ethics committees which review clinical trials and research and it will take over responsibility for the Central Office of Research Ethics Committees from the DoH.

The UK Public Health Association, which represents public health interests, expressed some concern about the decision to abolish the HDA. Its chairman David Hunter warned: “It is vital that what emerges from the abolition of the HDA is a new organisation and not NICE with public health bolted on or confined to a silo.”

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