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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7397 p468
22 April 2006

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Drug costs to be targeted

Spending on medicines has been highlighted as a target for savings to help control costs in the NHS.

Outlining a financial turnaround programme for the NHS at a 10 Downing Street seminar last week, acting NHS chief executive Sir Ian Carruthers said that there is considerable scope for savings in the annual £10.3bn drugs bill. In particular, he believes that there are still savings to be made from greater use of generic medicines. He said that too many hospitals have a misplaced brand loyalty that adds to costs.

Drugs spending as a whole accounts for 11 per cent of the total NHS budget. Staff salaries account for 65 per cent.

Sir Ian also told the meeting that more than three-quarters of NHS trusts (excluding foundation trusts) were expected to break even or fail to spend their allocated budgets.

Earlier this week, Prime Minister Tony Blair told a New Health Network conference that although the deficits of some hospital trusts were a serious challenge, they should not be portrayed as evidence that the NHS was in crisis because the total deficit was less than 1 per cent of turnover.

Mr Blair said that NHS reforms were not creating deficits, they were exposing them.

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