The coalition’s recently unveiled Programme for Government and proposals for a new Health Bill promise significant change for the NHS. Patient power, value-based pricing and clinical leadership will be take centre stage. But what will it mean for pharma? Chris Ross examines the rhetoric.
Plans to review NICE and introduce value-based pricing have received a cautious welcome from the UK pharmaceutical industry in the wake of the new coalition government’s first announcements on health.
The ABPI has said it supports an assessment of NICE’s remit and the way in which it assesses value, but warned that the move towards value-based pricing faces some significant design issues.
The two proposals formed part of a series of new initiatives unveiled by the new government, design to facilitate a devolution of power and responsibility within the NHS and give patients and doctors more control in a clinically-led health service.
The new approach, outlined by Cameron and Clegg in their Programme for Government and expanded upon within the subsequent Queen’s Speech, aims to bring an end to the ‘bureaucracy, top-down control and centralisation’ it claims has ‘diminished the NHS’.
Health Secretary Andrew Lansley, MP said the new NHS will be one in which patients enjoy a prominent voice. “Decisions must be taken with patients, closer to patients and with clinical leadership to the fore,” he said.
The BMA has welcomed the pledge to develop a clinically-led health service following an increase in NHS management in recent years, but urged the coalition to deliver beyond rhetoric. “Doctors want to work constructively with the new government and we are pleased with plans to prioritise clinical engagement with the medical profession. But it is essential that this dialogue is meaningful and does not just pay lip service to the notion of involving clinicians in proposals for the health service,” said BMA Chairman, Dr Hamish Meldrum.
Plans to introduce a Health Bill that cements the coalition vision for the health service were unveiled in last month’s Queen’s Speech. The Bill, which will be put before parliament in around 18 months’ time, will propose an NHS run by clinicians and free from political interference. A flagship component will be the creation of an independent NHS Board, which will be responsible for apportioning resources and providing commissioning guidance. It will also give GPs power to purchase services for their patients.
Other measures include the establishment of a Cancer Drugs Fund to enable patients to access the cancer drugs ‘their doctors think will help them’, an increase in the responsibilities of the Care Quality Commission, and awarding new powers to Monitor to act as an economic regulator ‘to oversee aspects of access and competition in the NHS.’ Further attempts to improve efficiencies within the service will see a reduction in the number of health quangos in a bid to cut administration costs in the NHS by a third.
The Health Bill – at a glance
Purpose:
To build a sustainable national framework for the NHS
To support a patient-led NHS focused on outcomes
To reduce bureaucracy
Benefits
An NHS led by clinical decision-makers that is more responsive to patients
A system which drives up standards of care, eliminates waste and achieves outcomes
A service where patients have greater choice and control in decisions about their care
Policy
The establishment of an independent NHS Board to allocate resources, provide commissioning guidance and to allow GPs to commission services
Strengthening the Care Quality Commission and developing Monitor into an economic regulator to oversee access and competition in the NHS
A reduction in the number of health quangos, cutting the cost of NHS administration by a third
Programme for Government
The Queen’s Speech followed hot on the heels of the coalition’s Programme for Government, which was unveiled by Prime Minister David Cameron and Deputy Prime Minister Nick Clegg shortly after the new government was formed. The Programme guaranteed a ‘real term’ increase in health spending in each year of the parliament and an end to ‘top-down reorganisations of the NHS’ that it said had ‘got in the way of patient care.’ The government pledged to stop the ‘centrally dictated closure of A&E and maternity wards’ and give people better access to local health services. Key measures outlined in the Programme include:
- NICE reform and a move to value-based pricing so that all patients can access the drugs and treatments their doctors think they need
- Establishing a Cancer Drugs Fund
- Strengthening the power of GPs as ‘patients’ expert guides’ through the health system by enabling them to commission care on their behalf
- Prioritising dementia research within the health R&D budget
- Setting health targets in key areas such as cancer and stroke survival rates and reducing hospital infections
- £10 million a year from 2011 to support children’s hospices
- A new per-patient funding system for all hospices and providers of palliative care
- An extension of best practice on improving discharge from hospital –maximising the number of day care operations, reducing delays prior to operations and enabling community access to care and treatments
- Helping elderly people live at home for longer through home adaptations and community support programmes
- The development of a 24/7 urgent care service throughout England
- Giving every patient the power to choose any healthcare provider that meets NHS standards, within NHS prices. This includes independent, voluntary and community sector providers
The programme’s commitment to end an era of top-down NHS reconfigurations and instead give power back to local communities has been highlighted as a key component of change. Health Secretary Andrew Lansley said: “We are committed to devolving power to local communities – to the people, patients, GPs and councils who are best placed to determine the nature of their local NHS services. Local decision-making is essential to improve outcomes for patients and drive up quality.”
Lansley said he expects decisions on NHS service changes to:
- Focus on improving patient outcomes
- Consider patient choice
- Have support from GP commissioners
- Be based on sound clinical evidence
Local NHS organisations that have started to look at changing services will need to ensure their plans match these criteria. Lansley had said he was looking to NHS London, the biggest authority in the health service, to lead the way in working with GP commissioners in their reconfiguration of NHS services. However, the head of NHS London, former GSK Chairman and CEO Sir Richard Sykes, resigned from his position late last month following the new government’s decision to halt a wave of hospital reorganisations. Sykes was said to be furious at the Health Secretary’s decision to scrap a review of healthcare in the capital. The review included the possible closures of some A&E and maternity units.
Reaction
Reaction to the recent announcements has been varied. The ABPI said that the UK is slow to allow patients’ access to innovative new medicines, despite having the lowest prices compare to other countries – and therefore was pleased to see the proposed review of NICE. A spokesman told Pf: “We would welcome a review of NICE, its remit and the way it assesses value, so that British patients get better outcomes and access to medicines available to patients in other countries, and the NHS spends its total budget as wisely as possible.”
Its views on value-based pricing, however, were more cautious – with its successful implementation being dependent upon collective responsibility between the industry, government and the NHS. “The ABPI strongly supports the principle that NHS patients should receive faster access to innovative new medicines. Industry needs to be accountable for demonstrating the full value of medicines, while NICE and the NHS must put in place systems commensurate with evaluating this full value,” it said. “Value-based pricing (VBP) is clearly a priority for the new coalition government, but faces some significant design issues – and we look forward to a dialogue with government on these issues. No other country has yet implemented a full VBP system and its design will be critical in order to avoid unintended consequences for patients, government, the NHS and industry alike. The current PPRS runs until 2014 and, under this scheme, the UK enjoys the lowest prices in Europe.”
Anna Dixon, Director of Policy at think-tank The King’s Fund, said the proposals confirm that the NHS is embarking upon a period of significant change. "Strengthening the role of doctors and the voice of patients will create some difficult dilemmas," she said. "In setting up an independent NHS board, careful thought will need to be given to the relationship between its responsibilities and those of ministers, who will remain accountable to parliament for NHS expenditure".
“We welcome the acknowledgement of the critical role played by GPs within the NHS and the clear signal that changes are needed to improve the quality of general practice. If, as expected, these changes include transferring budgets to GPs, it will be important to learn from the previous experiences of GP-led commissioning in the United Kingdom and other countries to ensure it delivers benefits for patients and efficiency savings across the health system while ensuring accountability for public expenditure.”
But analysts have warned of the dangers of giving financial accountability to clinicians. Dean Arnold, head of health care practice at Deloitte, said: “Putting patients first is always a positive thing to do, so too is empowering clinicians. However, this requires some caution as clinicians are not specialists in cost management – a skill that will become increasingly important. With power becomes greater accountability. Patients should be able to hold clinicians to account. It can be argued that today health care managers and executives are far more accountable to patients than clinicians. It will be vital to get the right ‘checks and balances’ if we are to put the NHS in the hands of clinicians.”