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NHS UPDATE
A monthly update of activities in the NHS
for Regional Managers & Sales Teams .


By Alan Jones
of ajc healthcare

Concise, up-to-date and relevant analysis of the
NHS changes that are likely to have an impact on your business.

NHS

Mr. Brown has promised a 43% increase in health spending over the next five years. So, has the government finally realised that they are not going to get world-class health on the cheap? Some are calling for a root-and-branch reform of the NHS to be able to use all this investment effectively. But I thought we had just had that?!…The final Wanless report set out the stall for this Budget, calling for a vast cash injection over the next two decades. This 164-page report bursts with strategies for a Utopian NHS in twenty years time. Note that the vision of the future NHS workforce is one in which many of the first contacts between patients and the health service will be provided by nurses in community settings. Nurse practitioners can thus expect their roles to continue to expand. Major acute hospitals will focus on providing 24-hour intensive and high-dependency care. More information ->.

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The NHS Alliance is particularly pleased that Wanless has recommended that NSFs for specific disease areas should include estimates of the resources needed. "Our recent survey of prescribing costs in primary care showed that 87% of PCTs were expecting an overspend on their prescribing budgets for last year, largely because of the costs of prescribing associated with the NSFs and putting decisions made by NICE into practice," said Dr. Mke Dixon, Alliance Chair.

Health Secretary Alan Milburn told the Commons how all the new money would be spent. Delivering the NHS Plan - next steps on investment, next steps on reform spells all this out (More information ->). I have to say it is the usual mix of spin and recycled promises including 40 new hospitals and 500 more primary care one-stop centres over the next five years. More nurses, more doctors. More hospital beds. And 'foundation' PCTs…Hospitals will be allowed to 'cross-charge' local authorities for the cost of bed-blocking but will also face financial penalties for emergency re-admissions under the same scheme.

Last month of course also saw the massive reorganisation of the NHS, which came in more like a whimper than a bang. The launch of one of the biggest structural changes in NHS history saw the death of almost 100 health authorities and the birth of 28 strategic health authorities (StHAs) and 138 PCTs but received scant media attention. Almost any year in the last decade could have been described as one of unprecedented change, but this year does feel different. On April 1, there were structural changes at every level of the service - something never tried, even during the internal market reforms.

Primary Care

One lone PCG has held onto its status, as its counterparts across England became PCTs last month. Witham Braintree and Halstead PCG has instead opted to move directly to Care Trust status, which it expects to secure by October. In terms of the Care Trusts going live last month we had just four - Northumberland (from 4 PCGs + social services) + 3 Mental Health & Social Care Trusts - Manchester, Bradford and Camden & Islington.

As to the new PCTs, folk are now asking that in this time of momentous change, how much control will they actually have when much of their expenditure seems to be being eaten away by services or central diktats over which they have no control. PCTs are also very immature organisations that have been hot-housed to reach this stage in their development. Many are still embryonic and some are still not at the starting line with many key staff yet to appoint.

Appraisal for GPs was introduced last month. This is intended to be a 'developmental process for individual clinicians, aimed at supporting good patient care and high standards of clinical practice in the NHS. It is about identifying development needs, not performance management and is an important building block in the clinical governance culture'. The BMA has said that if PCTs do not properly fund the system (very likely!) then GPs should pull out. The total bill for a PCT might be @ £50K - yet one more additional cost to find and another possible area for industry partnership.

Apart from senior managers from HAs descending on the new PCTs like a wave of Nordic invaders, at least 10 of the new 138 PCT Chief Executives have come from Social Services. Colin Morris, former Director of Social Services at Darlington Borough Council is Darlington PCT Chief Exec and Nigel Porter, previously Durham County Council's Deputy Director of Social Services is Chief Executive of Sedgefield PCT. Implications for companies? But some PCTs still do not have Chief Executives!

There have been a lot more adverts in the HSJ for PCT DPHs - West Yorkshire StHA advertised for 12 posts with some very useful details given on each PCT (see issue of 25/4/02, p. 40) and Surrey and Sussex PCTs are looking to fill 15 posts. Further information (application packs!) on the Surrey/Sussex posts can be downloaded from www.wsussexhealth.org.uk/pctdph. In fact only about 20% of the 305 new PCTs apparently have public health directors appointed. Although the expansion of DPHs from 95 positions in HAs to more than 300 is offering public health consultants a step up the career ladder, in the longer term, we are likely to see non-medical DPHs becoming more common.

StHAs continue to advertise for posts in the HSJ. But StHAs seem to be struggling to carve out their new role, a snapshot survey of chief executives by the HSJ has shown. A month since their launch, the urgent pressures of the service and financial framework (SaFF) round seem to have forced StHAs to revert to old 'command and control' behaviours……But the role of StHAs in delivering the results promised on the back of the huge rise in health spending should not be underestimated. Although, in theory, it will be the PCTs that control the money, their freedom to determine priorities - and therefore spending levels - is likely to be tightly controlled by centrally determined targets, as previously mentioned. So do get hold of their 'franchise plans' for 2002-05 (really business plans!). I note that in North West London StHA's plan, there is provision for a pharmaceutical adviser!

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Prescribing & Medicines Management

The consultation on supplementary (dependent) prescribing by nurses and pharmacists is now out. An important thing to note here is that there is essentially no formulary in supplementary prescribing and that the key will be the Clinical Management Plan agreed with the independent prescriber. More information ->.

The National Prescribing Centre (NPC), in collaboration with the National Primary Care Research and Development Centre (NPCRDC), has produced a practical guide aimed at supporting the NHS locally in the development of effective medicines management services. Modernising Medicines Management: A guide to achieving benefits for patients, professionals and the NHS consists of two books and this resource is aimed at professionals and managers in PCTs, GP practices and also hospitals. Book 1 gives a concise overview of the 'why, what and how' of medicines management, and is aimed primarily at senior NHS managers. Book 2 is a more detailed reference source and will be of most value 'to those individuals who have direct responsibilities for developing and delivering effective medicines management services for patients in practice.' See either www.npc.co.uk or www.npcrdc.man.ac.uk. Should be an essential read!

Local Pharmaceutical Services (LPS) Pilots are now go with guidance notes being issued on the 26th April. Pharmacy in the Future set out the vision for these equivalents to Personal Medical Services (PMS) pilots. For Community Pharmacy it is about providing patients with the right care at the right time in the right way and of the right quality. Key objectives are about better access, medicines management and service redesign around patients and LPS will provide a means of contracting at local level for the provision of pharmaceutical and other services within the same contract. Dispensing of medicines is a core activity of all LPS pilots but other elements can be proposed. The first wave of pilots will begin this year. More information ->

Prof. James Raftery, Prof. of Health Economics, University of Birmingham, in the HSJ (25/4/02) has an article on the Performance Assessment Framework (PAF). One of the High Level Performance Indicators vis-à-vis efficiency is generic prescribing. "Generic prescribing has been important in controlling drug costs…The increase in both prescription volume and costs over recent years, often for new drugs, has been possible within tight budgets due to heavy reliance on generic prescribing rather than branded drugs….the higher costof generics and the current high level at 73.6% of all GP prescribing no longer automatically saves costs." However 'cash releasing efficiency savings' are still the name of the game and I note that in a health service fact sheet put out by the Association of Chartered Certified Accountants (ACCA) prescribing again is mentioned as a key pressure point. NHS Finance Directors should seek to further increase levels of generic prescribing, agree and extend formulary arrangements in primary care and implement prescribing incentive schemes, the fact sheet suggests. And finally here, April's Bandolier carries an article on Do Formularies work? A literature search found no evidence either way in terms of reducing costs or improving health outcomes. "Indeed what little Bandolier could find suggested the opposite"……

Re generics, several PCTs have recently voiced their concern over attempts to stave off patent expiries by introducing 'line extensions'. Hampshire PCTs have written to several companies warning that educational collaboration with them might be in jeopardy if they continue to introduce new forms of stereoisotopes before patents expire. In the letter, the PCTs make it clear that assumptions concerning generic costs in the future are essential to balancing their budgets. "The NHS does not have the capacity to actively sustain the market for branded products past the patent expiry period. Indeed, the decision about the amount of money made available for prescribing in primary care is based on the assumption that savings are realised when popular drugs become available as generics." Oh dear….

PCT Directors of Finance have said that prescribing costs will be the biggest financial pressure facing PCTs this year because of overspends last financial year. Uplift factors for 2003/3 are not expected to be enough and drug costs are now seen as one of major underlying pressures on the NHS and lie firmly in the area of 'risk management.'!….

Scotland

NICE and the Scottish Intercollegiate Guidelines Network (SIGN) have signed a statement on working together to produce clinical practice guidelines. One problem at the moment is that SIGN, although it pioneered evidence-based guidelines (i.e. its statements are ranked as to their clinical effectiveness according to the 'hierarchy of evidence'), does not yet include cost effectiveness, as do the guidelines from NICE.

The Scottish Executive is setting up a new advisory panel to review the management and decision-making in NHS Scotland. Also a report from the Primary Care Modernisation Group suggests expanding the role of the Local Healthcare Cooperatives (LHCCs). The CSBS is to perform annual reviews on acute trusts after they found that many trusts do not have an adequate understanding of clinical governance. For instance, few trusts had policies to ensure clinical guidelines, such as those from SIGN, were implemented. For the report. More information ->.

Wales

The National Assembly for Wales is establishing an All Wales Medicines Strategy Group (AWMSG) which will advise Jane Hutt, Minister for Health & Social Services, on 'developments' in prescribing. So this is about strategic medicines management, horizon scanning, new drug introductions (it will not duplicate NICE work!), NSFs, cost-effective prescribing and so on. Three pieces of good news here - the meetings will be open to the public, there will be a public annual report and, like the Scottish Medicines Consortium (SMC), the ABPI gets a seat at the table. The National Assembly for Wales' Health & Social Services Committee met recently. The agenda and papers can be obtained at www.wales.gov.uk. The NAW has issued guidance to the service to fund the implementation cost of NICE guidance and an extra £10.5m has been included in next year's HA allocations. The Chief Medical Officer has published her report. More information ->. Also the Welsh Mental Health NSF is due soon and it is expected to focus on Primary Care. The Chairs of the proposed Local Health Boards have now been announced. See HSJ 2/5/02 p. 35.

About the author

Therapy specific, corporate newsletters, written by Alan Jones of AJC Healthcare, are employed within many Sales Teams throughout the UK Pharmaceutical Industry, as a source of crucial NHS intelligence.

To discuss how your team could benefit from regular up-to-date analysis of the NHS changes and issues that directly impact on your business, please contact Alan Jones of ajc healthcare (alan.jones28@virgin.net)

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