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PJ Online homeHospital Pharmacist
2006;13:395-401
December 2006

Hospital Pharmacist back issues

Special features

Procuring medicines — recent changes in England

By Peter Sharott BSc(Pharm), FRPharmS

This article, the second in a special feature, describes recent changes affecting the NHS supply chain, and the impact this has had on pharmacy. It describes the key functions of the Supply Chain Excellence Programme and a London initiative to improve cost-effective procurement of medicines

This article as FULL TEXT PDF (280K)


Peter Sharott is director, London, Eastern & South East Specialist Pharmacy Services and chairman of the Pharmaceutical Market Support Group

Cost of pharmaceuticals

Pharmaceuticals cost the NHS in England approximately £2.2bn per year

SUMMARY

Procurement of pharmaceutical products in the NHS is often described as the “jewel in the crown” compared with procurement of other product groups. This is recognition of the long-standing partnership between specialist procurement pharmacists, national and local pharmaceutical procurement groups (PPGs) and the NHS Purchasing and Supply Agency (NHS PASA), which has delivered cost-effective market management of generic and branded medicines for many years.

In common with other health care products and services, pharmaceutical contracting, purchasing and supply are subject to increasing demands to reduce prices and produce efficiencies in the supply chain. However, the procurement of pharmaceuticals also has a number of unique characteristics which require a high level of professional and clinical input. The overriding priority is to ensure that medicines are always available to meet the clinical needs of patients. Particular emphasis needs to be placed on critical medicines where no acceptable clinical alternatives are available and, therefore, patients may be put at risk if they do not receive them. The NHS aims to purchase only medicines of the highest quality, that are appropriately packaged and labelled and safe to handle by health care staff and patients.

The contracting, procurement and supply of generic medicines is essentially a technical and commercial process, which requires specialist pharmaceutical input at a national level, but limited clinical involvement. On the other hand, branded medicines generally fall within therapeutic groups where clinicians decide which drugs should be available on trust formularies. Opportunities to achieve therapeutic rationalisation have to be managed at a local level through clinical engagement and consultation with trust and area prescribing committees and clinical networks. In a wider context, rationalisation and globalisation of the pharmaceutical industry and the generic medicines manufacturers have increasingly led to major product shortages, the consequences of which need to be managed effectively at both a national and local level. Recent examples include shortages of diamorphine injection caused by withdrawal of a manufacturer’s licence, and intravenous human immunoglobulins, caused by insufficient production capacity to meet increasing global demand.

Market management, achieving a balance between the pressures to achieve cost savings and maintaining a continuous and reliable supply chain, needs to be given the highest priority when proposing changes to the current arrangements. Over the past few years, wide-ranging reviews and changes to the NHS structures for contracting, procurement and supply chain management for all commodities have posed challenges to the arrangements for pharmaceuticals. This article describes how these changes impact on pharmacy and the challenges that have been addressed.

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