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Vol 279 No 7474 p436
20 October 2007

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Why managing the nation’s drug bill need a political change of direction

By Mike Beaman

Mike Beaman, is a pharmacist from Littlehampton, West Sussex

The Broad spectrum feature is open to any reader. Contributions of around 1,100 words commenting on topical issues may be posted to Graeme Smith, managing editor, or e-mailed to graeme.smith@pharmj.org.uk for consideration

Back in 1983, when I was appointed a district pharmaceutical officer, I was asked at the outset by my general manager whether I would pay for my salary in the first year from savings on the drug budget.

Twenty-five years on, has anything changed? I am sure many pharmacy managers, both in primary and secondary care, can identify with that.

Recently, I was a guest speaker, alongside a primary care director in one of the large pharmaceutical companies, at a meeting of the Pharmaceutical Marketing Society. We spoke on the subject of prescribing influences. The following is a distillation of our respective presentations and the discussion that ensued.

We began by reviewing the impact on the NHS of drug expenditure, which in 2005/06 amounted to 18 per cent of the NHS budget, second only to the pay bill. This was broken down to 23 per cent in secondary care and the remainder in primary care. Drug costs in secondary care had risen faster than in primary care, probably due to the difference in product mix. When turnaround teams are sent in to make savings on the NHS budget, prescribing, perhaps unfairly, is always targeted, partly because the data available are the most accurate and transparent for any aspect of health care activity.

The pressure on prescribing continues unabated following a series of NHS changes over the past two years. Strategic health authorities (SHAs) and primary care trusts have scaled up and this has been accompanied by the emergence of practice-based commissioning groups, all of which are focused on managing within finite budgets. SHAs have a performance management role and prescribing will continue to be monitored against a series of indicators in the prescribing toolkit. Practice-based commissioning groups have their toolkit as well, and this could be used to link prescribing to activity such as utilisation of secondary care services and prevalence and management of long-term conditions. How many prescribing advisers have spent inordinate amounts of time with high prescribing practices when, really, it is their broader activity that should be focused on?

Against this background there has been a series of reviews. The National Audit Office has examined prescribing cost and quality in primary care and has recommended improvements to make the communication process with prescribers more effective. The Office of Fair Trading is currently reviewing the Pharmaceutical Price Regulation Scheme and considering factoring in a new element around the cost-effectiveness of drugs. The Government is currently reviewing prescription charges, no doubt prompted by the Welsh Assembly’s decision to abolish them. There is scope here to review the exemptions system, particularly around long-term conditions. The FP10 has always been an “open cheque book”; why not base charges on volume rather than number of items?

At a more local level the National Prescribing Centre has been examining area prescribing committees with a view to making them more effective.

So what support mechanisms are in place for pharmacy managers, particularly those in primary care, where the bulk of prescribing takes place?

The ever-increasing range of National Institute for Health and Clinical Excellence guidance on drugs and treatments, ably supported by regional centres such as MTRAC (Midlands Therapeutic Review and Advisory Committee) and the London New Drugs Group, provide much needed support in local decision-making.

The National Prescribing Centre provides a comprehensive range of training, development and information support. The emergence of new prescribers and the new pharmacy contract in the community provide alternative routes to managing prescribing and use of medicines but in both these areas the impact, as yet, has been less than modest. This is not a criticism of those health care professions involved; rather, it is a judgement on the lack of infrastructure to support these changes. For instance, new prescribers have to hand-write their prescriptions. The number of pharmacists wishing to become prescribers is limited by a lack of mentor support. In the case of the new pharmacy contract the All-Party Pharmacy Group has recently published its review and, hopefully, this will provide a way forward to make the contract more effective. At times it appears a bit like being in a swimming pool where there is a lot of activity going on but mainly in the shallow end.

Are we spending too much on prescribing? Personally I think not, when one considers the central controls in place around the costs of generic and branded medicines and the initiatives of senior pharmacy managers in the area of procurement of medicines and appliances. Coupled with this are the mounting pressures on prescribing arising from new technologies in health care, the population changes that are occurring in the UK and the management of long-term conditions. There will always be savings to be made on prescribing but the direction of travel should be around optimisation rather than cuts. It is a perverse situation when savings that have been achieved on the drug budget are clawed back to offset deficits elsewhere. But then we now have a government that measures a part of its performance in the NHS on “financial health”.

What changes would one like to see if one could go back to the drawing board?

First, budgets should be introduced that cover a care pathway in long-term conditions rather than operate in “silos”. A new expensive drug, which might save money elsewhere in the service, might then become a more attractive proposition.

Secondly, high cost/high technology drugs, particularly those with a limited evidence base, should be removed from local budgets, which, after all, are finite. Far better if these could all be managed through specialist commissioning or at a higher level where further research could ensue before making them more freely available

Finally, the ethical dimension must be given consideration. The plight of cancer patients being refused a new drug on the basis that it will only increase their lifespan by three or four weeks poses a real dilemma and, as a former prescribing adviser, I never felt comfortable having to make such decisions. Many PCTs now have mechanisms for prioritising treatments, including medicines. However, I believe there is a need to include an ethical perspective to these groups. Furthermore the establishment of clinical ethics groups could take this a step further by addressing questions of a broader nature. For instance should we continue to prescribe statins to patients over 90 years of age?

Clearly a political change of direction in managing the nation’s drug bill is needed and it will be interesting to see if the forthcoming NHS review, led by Lord Darzi, will address these issues. Watch this space!

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