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PJ Online homeThe Pharmaceutical Journal
Vol 279 No 7461 p68
21 July 2007

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News feature

Rare diseases: how treatment is funded

Diseases that affect one patient in every 100,000 or so would lead to unmanageable burdens if expensive treatments had to be funded locally. Tom Moberly (on the staff of The Journal) looks at national programmes for funding such treatments and recent changes to the organisations involved


Rare diseasesSome diseases are so rare and, as a consequence, treatments for them so expensive that the burden of funding treatment has to be spread widely.

If national systems were not in place, treatments would have to be financed direct from the primary care organisations in whose area the affected patients were treated. This could have two consequences.

First, the rarity of such conditions, and the fact that there may well be a genetic component to their causation, might mean that cases were concentrated geographically and so the cost of treatment could fall much more heavily on some organisations that on others.

Secondly, individual primary care organisations would have to decide whether or not to provide funding for treatments. If they did, they may have to deny funding for other services. If they did not, they could be seen as refusing treatment to patients on the grounds that their condition was too rare for an affordable treatment to have been developed.

To avoid either of these outcomes, England, Scotland and Wales have each developed mechanisms to enable the costs of expensive treatments for rare diseases to be divided across primary care organisations. These are all different, but are based on broadly similar principles (see Panel).

Differing funding arrangements in England, Scotland and Wales

In England, the National Commissioning Group is responsible for funding services for treating rare conditions. Before April 2007, the NCG was known as the National Specialist Commissioning Advisory Group.

To qualify for NCG funding, a condition must have a national caseload which is unlikely to be above 400, treatment must be sufficiently expensive to create a significant financial burden when cases arise, and treatment for all patients must be able to provided by a small number of centres. If a service is accepted by the NCG and health ministers for national funding, the money currently spent on the service by primary care trusts is transferred to the NCG budget.

The NCG also receives funding from the Department of Health. Its budget in 2006 was £222m.

In Scotland, services for treating rare diseases are selected for national funding by the National Services Advisory Group and are funded by the National Services Division of NHS Scotland.

Applications for national funding must provide evidence of the clinical need for the treatment, the incidence and prevalence of the disease and the effectiveness, and cost-effectiveness of the treatment. Treatments designated as specialised services tend to be those affecting fewer than 100 people across Scotland.

The National Services Division also funds a number of specialised services provided in England on behalf of NHS boards for patients resident in Scotland.

In Wales, highly specialised services are the responsibility of Health Commission Wales (Specialised Services). This is an executive agency of the Welsh Assembly Government.

It is responsible throughout Wales for commissioning highly specialised services. It also gives advice to NHS Wales on the commissioning of specialised secondary services.

Great Ormond Street Hospital in London is one of the centres that have successfully applied to provide a number of specialised services funded by England’s National Commissioning Group (NCG), including complex tracheal disease, epidermolysis bullosa, persistent hyperinsulinaemic hypoglycaemia and severe combined immunodeficiency.

John Cheung, head of financial analysis and planning at Great Ormond Street Hospital, explains that the process of applying for funding begins with the NCG requesting funding bids to be submitted for consideration and short-listing. “The bids to NCG would normally be completed by the lead clinician and general manager, outlining current practice, reasons and justification for change, likely patient pathways if the service were not implemented, numbers, service profiled in terms of processes, resources and costs involved,” Mr Cheung explains.

Provision of funding by the NCG should not usually change the patient pathways, Mr Cheung adds, because there are two main scenarios in which NCG funding is sought. “Normally, it is either a development of a procedure into a service — for example clinicians notice an increase in patients being referred from other teaching hospitals for very high cost specialist treatment — or we have patients currently being assessed or treated for whom the current procedure or treatment is not appropriate or ideal,” he says.

Mr Cheung sees funding from the NCG as a way of establishing standard patient pathways for low volume, high cost treatments, for which it would not be clinically viable to have more than a few centres running.

The development of such standard patient pathways also means that regional discrepancies in treatment can be ironed out. For instance, in April 2007, the inherited metabolic disorders unit at Birmingham Children’s Hospital was granted funding from the NCG to provide treatment for children with lysosomal storage disorders, a term which encompasses a range of rare conditions caused by hereditary defects in lysosomes, including Gaucher disease, Niemann Pick disease, Pompe disease, mucopolysaccharidosis and Fabry disease.

In the past few years three other centres have also been granted approval to provide services to treat these conditions. However, before those approvals were granted there were great discrepancies in the approach of individual primary care trusts to funding the services and marked regional variation in the availability of this treatment to children, according to Anupam Chakrapani, consultant in metabolic disorders at Birmingham Children’s Hospital.

Although treatments for lysosomal storage disorders began to appear in the 1990s, their high cost proved problematic. “It used to be difficult to secure funding and we would have endless arguments with individual primary care trusts over these treatments,” Dr Chakrapani says.

“The treatments for these conditions are expensive and that is a function of the rarity of the conditions — some affect only 20 patients across the whole of the UK. The average cost for most of our patients would be between £30,000 and £200,000, but that is a cost for each patient and we have 12 patients across the Midlands.”

NCG funding means not only that the cost of treatment is spread across the country, rather than the burden being placed on a few primary care organisations, but also that specific criteria are set for the grounds on which treatment will be funded by the NCG.

“The system works on an individual patient basis,” Dr Chakrapani says. “When patients are referred to us, we will assess them and determine whether they fulfil the NCG’s criteria. If they do then treatment will be funded through the NCG, so the whole procedure of applying to the primary care trusts for funding and arguing over that is bypassed, as long as the patient meets the criteria.”

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