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2007;14:246
September 2007

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NICE guidance too expensive for NHS

The National Institute for Health and Clinical Excellence (NICE) could be judging “value for money” at a level far higher than the NHS can afford, a new report suggests.

NICE currently assesses the cost-effectiveness of a new health technology or therapy by determining the cost of each Quality Adjusted Life Year (QALY) gained by its use. If the cost is less than £20,000 per QALY, the intervention is deemed cost-effective. NHS approval from NICE is not based entirely on cost-effectiveness, although it is a major contributor.

Treatments can cost up to £30,000 per QALY (or occasionally above this in compelling circumstances), and still be cleared for NHS approval.

However, the report says that this threshold range holds no theoretical or evidence base, and suggests that it should be reviewed since the NHS is now operating under greater financial restraints than when NICE was formed in 1999. It also suggests that this threshold range is different from that used elsewhere in the NHS.

This may imply that NICE has approved too many treatments for NHS use — a suggestion that could have repercussions for hospital policy decision-makers.

Andrew Dillon, Chief Executive of NICE, commented: “This, and other aspects of our methods of appraisal are currently under review.”

The report comes from a group of economists working with the Kings’ Fund and City University (BMJ 2007; 335: 358-9).

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