Singapore

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Singapore
AAH Pharmaceuticals Convention
2007
understanding tomorrow today
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Sue Sharpe
Its your future

• CEO, PSNC

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Its Your Future

• Seismic shift in 2005
• From profits through medicines purchasing
• To service based funding
• Revolutionary change in the pharmacy business
  model
• Government policies that will shape the future
  for community pharmacy service provision

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Its Your Future

• Treasury Policy
• NHS Policy
• Pharmacy Policy

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The Treasury

• Procurement Policy

Office of Government Commerce an office of HM
Treasury, responsible for improving value for
money by driving up standards and capability in
procurement.
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Transforming Government Procurement

• Jan 07
• Central importance of procurement in delivering
• high quality public services and best value for
• money
• Setting the right procurement standards
• Capitalising on the Governments collective
  buying power
• Playing a stronger role in the successful
  delivery of major projects

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NHS Procurement

• NHSPASA

Supply Chain Excellence Programme objective
to restructure the NHS supply chain to gain
efficiencies and improve the effectiveness of
supply management in the NHS
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National Contract Procurement

• Wave 1 agreements furniture, fleet,
  pharmaceuticals

DHL will run a division called NHS Supply Chain,
on behalf of NHS Business Services Authority, and
be responsible for delivering all procurement and
logistics services across an initial 500,000
products to support 600 hospitals and other
providers in England. The business will ensure
that public health (NHS) authorities can dedicate
more resources to patient care and continue to
manage their cost base. September 2006 DHL
Novation
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Pharmacy Procurement

• Generics reimbursement 2001
• Options central procurement, reference pricing
• Category M
• PPRS OFT market study
• Value based pricing
• Branded generics pricing proposals
• - DH response June 07

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Pharmacy Procurement

• DH Commercial Directorate
• Dressings
• Chemical reagents
• Price reductions
• Stoma Inco products

New service specifications, prices and
contracting arrangements
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Treasury Policy - Health

• Wanless Report 2002 Securing our Future Health
• Commissioned by Chancellor
• Led to the increase in funding for health

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Wanless Report 2004

• Securing Good Health for the Whole Population

A NHS capable of facilitating a fully engaged
population will need to shift its focus from a
national sickness service, which treats disease,
to a national health service which focuses on
preventing it. Commissioned by PM, Chancellor
Secretary of State
for Health
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NHS Policy

• Our health, our care, our say Jan 2006
• Better prevention services with earlier
  intervention
• People to have more choice and a louder voice
• Tackling inequalities and improving access to
  community services
• More support for people with long term needs

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Our health, our care, our say

• Making better use of community pharmacy services

The public told usthat they want pharmacists to
have an increased role in providing
support, information and care.
We will continue to develop the contractual
arrangements for community pharmacy services in
line with the ambitions set out in
this White Paper.
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The Pharmacy Contract

• Link between services and Wanless principles
• Public health elements in essential services
• Direct Treasury involvement in all financial
  aspects
• Invoice inquiries to identify and manage purchase
  profit income
• Opportunities to develop services

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Future Funding for Pharmacy ServicesTransparency

• Delivery of 500m agreed purchase profits
• Invoice inquiries and Cat M
• Future policy on purchase
  profit income
• The discount scale and changes in distribution
  arrangements
• The PPRS and the OFT proposals

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Control of Entry

• OFT review 2001-03
• The Balanced Package
• 4 exemptions
• DH review in 2006
• PCT response
• exemptions reduced power to plan service delivery
• Add to cost and complexity of a costly
  complex system

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Galbraith Review

• Terms of Reference, to examine
• Current contractual arrangements taking account
  of control of entry
• The extent to which they contribute to aims of
  OHOCOS high quality service offering greater
  access choice, supporting health well-being,
  effective help to those with high levels of need
• Inform formal consultation on how they should be
  developed or reformed to maximise the
  contribution and ensure value for money

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Roles Regulations

• Trust Assurance SafetyThe Regulation of Health
  Professionals in the 21st Century
• The practice of pharmacy is currently undergoing
  a revolution in which the clinical expertise of
  the profession is being greater freedom to
  harness itself to the needs of patientsAs a
  profession pharmacists are entering a new era, in
  which they will have much greater scope to apply
  their high levels of expertise in direct patient
  care.

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The Key Messages

• Procurement and value for money
• Changes in PPRS?
• Changes in distribution?
• Centralised procurement?
• Treasury control and involvement
  in policy
• Funding transparency

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The Key Messages

• Service development opportunities
• Public health services the major opportunity
• Using pharmacists skills
• Adding to access and choice
• National or local contracting?

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and its all in new services!
Its your future
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Singapore
AAH Pharmaceuticals Convention
2007
understanding tomorrow today