Politicians' View Of The UK Drug Industry

31 October 1994

The UK government is putting a great deal of support behind its general practice fundholding initiative and this will lead to more and more downward pressure on GP prescribing, creating a serious challenge for the pharmaceutical industry, according to Colin Hitchins, Pharmaceutical Officer for the South Thames and West Health Authority. Hospitals are accustomed to this type of pressure but it is new to general practice, he said.

Mr Hitchens told a conference in London last week, organized by the MSF (Manufacturing, Science, Finance) trades union to discuss the future of the pharmaceutical industry in the UK, that while the National Health service budget is not officially cash-limited, a greater share of it is becoming so because of the fundholding initiative. In 1993-94, GPs in England overspent on prescribing by L134 million, or 4.35% of the national total, and fundholding general practices spend, on average, 4% less on drugs than non-fundholders. The first and second wave of fundholders were keen, entrepreneurial GPs who are extremely tough negotiators, he said, hence these results, but the government might be putting too much hope into the scheme. GPs entering the scheme in the fourth, fifth and sixth wave are not so tough or entrepreneurial, he said, nor might their prescribing be as good.

Ben Hayes, public affairs director at the Association of the British Pharmaceutical Industry, told the meeting that the pharmaceutical industry is a partner with the NHS and not a supplier, and that drug prices in the UK have gone down by 17%, across the board, in the last 10 years.

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