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Health Service Medical Supplies (Costs) Act 2017

Contents

Overview of the Act

  1. The Health Service Medical Supplies (Costs) Act amends and extends existing provisions of the National Health Service Act 2006 ("the NHS Act 2006") which relate to:
    • the remuneration for person providing special medicinal products;
    • the control of the cost of health service medicines and other medical supplies;
    • the provision of pricing and other information to the Secretary of State by those manufacturing, distributing or supplying health service medicines, medical supplies or other related products required for the purposes of the health service; and
    • the disclosure of the information referred to in the preceding paragraph in specified circumstances.
  2. The Act also amends existing provisions of the National Health Service (Wales) Act 2006 ("NHS (Wales) Act") which relate to:
    • the remuneration for persons providing special medicinal products;
    • the provision of pricing and other information to the Welsh Ministers by persons who provide primary medical services under Part 4 of the NHS (Wales) Act or persons who provide pharmaceutical services under Part 7 of the NHS (Wales) Act; and
    • the disclosure of the information referred to in the preceding paragraph in specified circumstances.

Sections relating to remuneration for persons providing special medicinal products

  1. Sections 1 and 2 of the Act relate to remuneration for persons providing special medicinal products as part of the health services in England and Wales. The new sections amend the NHS Act 2006 and clarify that the Secretary of State can make regulations regarding remuneration for pharmaceutical services specifically with respect to special medicinal products.

Sections relating to the control of the cost of health service medicines

  1. Sections 3 to 6 of the Act relate to the control of the cost of health service medicines. The provisions in the Act amend the NHS Act 2006 clarifying that the Secretary of State may make regulations or directions to limit the costs of health service medicines by requiring manufacturers and suppliers of health service medicines to make payments calculated by reference to sales or estimated sales of those medicines. The provisions in the Act also amend the NHS Act 2006 to enable the Secretary of State to recover and enforce those payments.

Sections relating to the control of the cost of other medical supplies

  1. Section 260 of the NHS Act 2006 provides the Secretary of State with the power to control the maximum price of medical supplies other than health service medicines. Section 7 makes the enforcement provisions and the territorial extent provisions relating to section 260 consistent with the enforcement and territorial extent provisions relating to the powers to control the cost of health service medicines.
  2. Section 7 of the Act also amends section 260 of the NHS Act 2006 so that the Secretary of State must consult representatives of manufacturers, distributors and suppliers before making an order to control prices, and for the first order to be subject to the affirmative resolution procedure.

Sections relating to the provision and disclosure of information

  1. Section 8 introduces a new power in the NHS Act 2006 to enable the Secretary of State to make regulations to obtain information from any person who manufactures, distributes or supplies health service medicines, medical supplies or other related products required for the purposes of the health service, for purposes specified in the Act. The provisions in the Act would also allow the information to be disclosed in specified circumstances.
  2. Section 9 amends the NHS (Wales) Act to provide Welsh Ministers with the power to make regulations to obtain information from persons who provide primary medical services under Part 4 of the NHS (Wales) Act and from persons who provide pharmaceutical services under Part 7 of the NHS (Wales) Act.

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