Measuring UK Medicines Expenditure in the Context of the 2014-18 PPRS

This OHE Consulting Report, published today, reviews “Measurement of Medicines Expenditure in the Context of the 2014-18 PPRS”.

For the year 2015/16, the Treasury reported growth in Government funded healthcare expenditure in the UK of 4.0% whilst NHS Digital reported medicines expenditure growth for the English National Health Service (NHS) for the same period at 8.0%. However, NHS Digital reported much-reduced medicines expenditure growth for England of 3.5% for 2016/17, suggesting a complex underlying picture. NHS Digital growth rates are at list price as NHS Digital is not able to take account of rates of discount obtained by the NHS, which our analysis suggests are increasing, or of the rebate payments for branded drugs under the 2014-18 Pharmaceutical Price Regulation Scheme (PPRS).

It is important to stress that we have analysed data to understand trends since 2014. This work does not allow us to make any predictions about future trends.

The OHE Consulting Report is funded by the ABPI and co-authored by Jimena Ferraro, Phill O’Neill and Adrian Towse.

Read the full report here.


Ferraro, J. S., O’Neill, P. & Towse, A. 2018. Measurement of Medicines Expenditure in the Context of the 2014-18 PPRS. OHE Consulting Report, London: Office of Health Economics.

Posted in OHE Consulting, Pricing and Reimbursement, Use of Medicines | Tagged Consulting Reports