Is it possible for the NHS and pharmaceutical companies to work together? At first glance, they seem to have very different agendas. The purpose of the NHS is to service the British public, and it is also paid for by the public through taxes and national insurance payments. Pharmaceutical companies, however, are commercial organisations which aim to profit from selling their products to consumers, who include the NHS.
Does this mean that the NHS shouldn't trust pharmaceutical companies? Pharma can be a valuable source of support and knowledge, furthermore, they have a duty to educate practitioners about their products, so that they can be used safely and effectively, in the most appropriate patients. But should their influence on the NHS extend any further than this?
Providing Value for Money
One thing that both these types of organisation have in common is the need for cost-effectiveness. With budget cuts and over-stretched resources, the NHS has an urgent need to spend what money it does have very wisely. On the other hand, the pharmaceutical company aims to make a profit, and in doing so, wants to persuade the NHS to spend the money with them, on buying their products. The best way they can do this is to provide value for money, over and above their competitors.
Discounts
One of the ways they can do this is of course, simply cutting prices, or offering bulk order discounts. But the sheer amount of competition, greater in some disease areas than in others, means that companies cannot operate profitably while fighting pricing wars with their competitors, and so are offering alternative sources of added value.
Pricing Schemes
In areas where it is not clear of the value of an expensive drug, the company may offer a scheme in which the first treatment period is provided free of charge, and if there is no response, there is no payment. If the patient does show a response, then the NHS will begin to pay for further treatment courses. This can be a valuable incentive to ensure that the NHS only pays for the drug for those patients who will benefit from it, while benefiting the patient with access to expensive drugs that would not normally be permitted under current budgets.
Providing Expertise
Pharma companies can also offer their time and assistance to departments in streamlining their services, to make them more efficient. They can help identify waste and duplication, and assist in reshaping services to result in eventual cost savings. Of course, they are likely to want to offer these services to departments who use their products, or where they can see an opportunity for greater use of their product, but the strict regulatory code of the pharmaceutical industry disallows such selection. However, even in cases where there are no obvious immediate benefits to the company, they can still raise the profile and reputation of their company.
Regulation
In fact, the regulatory authority, the Association of the British Pharmaceutical Industry (ABPI), while being extremely rigid to protect the reputation of the industry, does allow, and even encourages, joint working between the NHS and pharmaceutical companies. As such, in conjunction with the Department of Health, it has produced a joint working toolkit, which sets out what each side can and can't do, or expect from the other.
In this way, the NHS and pharmaceutical companies can strike up relationships that are mutually beneficial, while being ethically sound and within the rules of the code of practice.
Lindsay Napier - I started my scientific career with a BSc in Biological sciences, then continued into the laboratory, studying for a PhD by researching ...
Join the Conversation