Datamonitor: UK - criticism mounts over NHS reform but pharmaceutical firms may benefit

The UK coalition government is facing legal action from public services trade union UNISON over plans to shake up the National Health Service in a bid to find efficiency savings.
By: reports-research.com
 
Sept. 10, 2010 - PRLog -- However, the proposed reforms could benefit pharmaceutical companies, with patients gaining access to drugs previously blocked by the health service's cost watchdog.

According to media reports, the government has requested that National Health Service (NHS) managers implement efficiency savings 'immediately', bypassing the white paper consultation phase set to end in October 2010. This could be unconstitutional, and has led to UNISON mounting a legal challenge.

The proposed shake ups have already faced criticism from other quarters, with academics branding the reforms as a "gamble". Concerns have also been raised over the influence that pharmaceutical companies may have over general practitioners who will become the new key decision-makers. Furthermore, the Muscular Dystrophy Campaign has suggested that patients will suffer as a result of general practitioners not fully understanding the complex conditions for which they will now have control over budgets. The government has hit back, citing that consultants will work alongside GP groups as part of the planned changes. However, financial criticisms are less easily waved away, with the British Medical Journal having suggested that the proposals will cost some GBP3 billion but provide no efficiency savings.

In contrast, the pharmaceutical industry has been broadly in support of the measures, with the Association of the British Pharmaceutical Industry (ABPI) warmly welcoming the proposals. Particularly well received has been the GBP50m cancer drug fund which may assist patients in accessing drugs which have not received National Institute of Clinical Excellence (NICE) approval, although skepticism remains over how long such a fund could last and whether future fund top-ups will be made available.

Of particular benefit to pharmaceutical companies are the proposed changes to the cost watchdog's operating remit. In a statement, the ABPI highlighted the benefits that could result from the NICE's focus shifting to clinical best practice and moving away from narrow cost-effectiveness measures that have prevented drugs such as Avastin (bevacizumab; Genentech/Roche) being used on the NHS. While not publically criticizing the watchdog, many may be quietly delighting in the demise of this significant barrier to market entry and profitability in the UK market.  


Related research

Datamonitor: UK Pharmaceutical Market Overview - Pricing and reimbursement challenges dampen future growth:
http://www.markt-studie.de/studien/pharmaceutical-market-...

Datamonitor: Generics Series: Authorized Generics Analysis - Stemming the generics tide:
http://www.markt-studie.de/studien/generics-series-author...

Datamonitor: Mapping the Healthcare Landscape - Bringing pharmaceuticals into focus:
http://www.markt-studie.de/studien/mapping-healthcare-lan...

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