NHS: Cost Effectiveness

(asked on 20th February 2017) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, what assessment his Department has made of the effect of the change in the value of sterling against the (a) euro and (b) dollar since 23 June 2016 on the ability of the NHS to achieve the efficiency target set out in the Carter review of NHS efficiency.


Answered by
Philip Dunne Portrait
Philip Dunne
This question was answered on 23rd February 2017

It is not possible to assess meaningfully changes in the value of supplier costs in the National Health Service as a result of the change in the value of sterling as we do not collect data that would show from whom trusts are buying products and, more importantly, where their suppliers’ supply chains are and thus the extent to which they are exposed to such changes.

Currency rates constantly fluctuate, and this is one of many commercial risks we would expect suppliers to manage when bidding to join an NHS framework. The Department is working with the NHS Business Services Authority to make sure suppliers keep to the prices set out in contracts for the full length of those contracts in order to help mitigate the impact of fluctuation.

The Operational Productivity Directorate in NHS Improvement is working to support NHS trusts to deliver the £5 billion of efficiencies by 2020-21 as identified in Lord Carter’s final report. The Directorate has ten major clinically and professionally led projects to help trusts deliver this ambition. Where relevant, projects have identified currency fluctuation as a risk and have mitigating actions in place to ensure they can continue to deliver efficiencies.

The price of branded medicines is controlled through the Pharmaceutical Price Regulation Scheme and statutory medicines pricing scheme, and so we do not anticipate any increase in prices as a result of currency fluctuations. For generic medicines not supplied through an NHS framework, we expect competitive forces in the market to continue to ensure prices are kept low.

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