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Vol 275 No 7366 p299
10 September 2005

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NHS finances must improve for NICE guidance

Key messages from the report

Speaking at the launch of the report, Andy McKeon, chairman of the Audit Commission, said that there are three key messages to be learnt from the report.

“Firstly, the quality of patient care and the quality of access to care will improve if NHS bodies sharpen their financial management arrangements.

“Secondly, there are a series of straightforward, practical steps that NHS bodies can take to make improvements, such as better budgeting and planning for the costs of forthcoming guidance.

“Our third point is that payment by results will change how NICE guidance is funded locally, so [NHS bodies] need to be clear about what impact it will have,” he said.

NHS bodies should strengthen their financial management arrangements in order to improve implementation of National Institute for Health and Clinical Excellence guidance, a report published by the Audit Commission this week argues.

Managing the financial implications of NICE guidance,” the result of a survey of 71 NHS bodies in England and 16 in-depth visits, found that only 24 per cent of NHS bodies routinely produce an action plan for implementation of clinical guidelines and only 12 per cent do so for technology appraisals. Implementation also varies across NHS bodies and is, the reports says, “less comprehensive and timely than desired.”

NHS bodies perceived funding to be the biggest barrier to the implementation of NICE guidance, the report found. A third of respondents identified guidance NICE issued in 2002–03 that they were unable to fund, including anti-tumour necrosis factor, photodynamic therapy and coronary artery stents. And 85 per cent said that the funds available to implement technology appraisals were insufficient, particularly in relation to high-cost appraisals, such as etanercept and infliximab for rheumatoid arthritis. However, the most significant issue identified by the Audit Commission was weaknesses in local financial arrangements.

The Audit Commission also calls for cost templates to be used more extensively. Tim Root, chairman of the British Onocology Pharmacy Association, commented: “It highlights the value of using a cost template as part of the planning process for implementation. The appendices include an example template for lung cancer and a business case proforma which identifies pharmacy services in a list of infrastructure costs to be considered.” He added that the report highlights the value of multidisciplinary clinical networks in aiding implementation and quotes examples from experience in cancer networks.

The Audit Commission also recommends that, in order to account for future costs, all NHS bodies should undertake continuous horizon scanning for forthcoming NICE guidance and that they should also consider sharing the responsibility for horizon scanning across strategic health authorities or in primary care trust clusters.

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