Measurement of Medicines Expenditure in the Context of the 2014-18 PPRS

Ferraro, J., O'Neill, P., and Towse, A.

Consulting Report
August 2018

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This OHE Consulting Report reviews “Measurement of Medicines Expenditure in the Context of the 2014-18 PPRS.” The project was funded by the ABPI.
 
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 are analysing data to understand trends since 2014. This work does not allow us to make any predictions about future trends.