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SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005: page 30

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SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005

1. Portfolio/Number/Name:H/C4Improved prescribing of drugs

2. Programme/Activity: Please include a short description

The plan is to deliver 20 million savings through improvements in prescribing, by adopting best practice and reducing inappropriate prescribing. A national co-ordinating plan was issued on February 28, 2005 requiring Health Boards to develop local plans which draw on existing guidance, and which are capable of monitoring to identify progress against the national targets.

3. Planned Savings

2005-06

2006-07

2007-08

Cash (m)

5

10

20

Time Releasing (m)

0

0

0

4. Accountable Officer for delivery

K. Woods

5. Project Manager

C. Naldrett

6. EGDG account manager

G. Woolman

7. Quality Impact

Describe any impact on the quality of service delivery. Be specific and explain if the expectation is positive, negative or neutral.

There is a risk that an insensitive cost reduction exercise could work through to reduced service provision and patients not receiving therapies they would otherwise have done, or alternatively to lack of buy-in from key decision takers on clinical grounds and non meeting of targets.

There is a further potential for more effective prescribing and removal of perverse incentives to work through to lower remuneration of GPs in rural and remote areas and adversely affect recruitment and retention.

The focus of the draft national co-ordinating plan is therefore to improve the effectiveness and thus the quality of prescribing by the adoption of a series of local plans which are accepted by local stakeholders, and to develop nationally more relevant remuneration arrangements for dispensing doctors.

8. Dependencies

Explain if your savings are dependant on legislation or other structural changes being achieved.

The achievement of targets will involve changes in the clinical practice of 4,250 General Practitioners and other independent prescribers, for whom the prime driver is improving the quality of prescribing for the benefit of their patients.

To some degree it will also depend on the success of planned nationally co-ordinated initiatives, as foreshadowed in the national co-ordinating plan, to support the efficient prescribing of non drug prescription items, such as dressings and nutritional products.

More cost effective prescribing in rural areas may need to go hand in hand with revisions to dispensing doctor contract arrangements to avoid destabilisation of the aggregate funding packages available to particular practices.

Critically, continuing development of area wide formularies, jointly by Health Boards and stakeholders including both clinicians and the industry, which will stimulate progress towards greater national consistency in prescribing practice.

We will review again whether mandating generic dispensing through Regulations is necessary and desirable to realise the last remaining latent savings from comprehensive generic prescribing.

9. Description of efficiency and actions to be taken

9.1 How will the saving be made? Be specific about number/size of contracts, staff, posts dates etc.

By adoption of local plans featuring, but not exclusive to, areas identified in the national co-ordinating plan issued to all Health Boards in February 2005. This identified for each Health Board the target saving and approaches to achieve the target, building on best clinical practice, possible areas for savings identified by SEHD including reference to existing external guidance such as from the Audit Scotland June 2003 report on GP prescribing, which included detailed recommendations. These local plans are to be submitted to SEHD It will be for Health Boards to consider whether further staff are required to augment existing prescribing advisory staff to help achieve local plans.

9.2 What action is critically needed to secure delivery of this saving? Be specific, and name the key action managers if they are outwith your immediate management chain (e.g. in an NDPB.)

Early production of local plans, as mandated by the national co-ordinating plan, in which local stakeholders accept target realistic prescribing quality improvements.

Sign-off of plans by HB Chairs/Chief Executives and prescriber representatives as locally appropriate, such as AMC/ CHP chairs or officers.

The action managers are the 4,250 + clinicians with prescribing rights, and ultimately the clinical discretion to prescribe for their patient what is most appropriate. It is, therefore, crucial that clinicians be satisfied that local plans aspire to improve quality in prescribing and clinical benefits for patients and are not crude cost savings targets.

They are supported by an existing network of prescribing advisers in Health Boards, for which each HB has to determine the appropriate complement and decide if staff augmentation would improve the ikelihood of a successful outcome.

10. Impact on Staffing to achieve the efficiency gain

If there are to be any changes in staff numbers (at activity level) to achieve the efficiency gain, please indicate how many full time equivalents and how far you expect savings to be achieved by natural wastage (show additions as + and reductions as -).

2005- 06

2006- 07

2007- 08

+

-

Net

Explanation

No change in complement planned. Consultant support may be required to help scope projects requiring national co-ordination such as in non drug prescribing.

11. Benefits

In general, the benefits of the Scottish Executive Efficiency Plan are the enhanced outputs from the resources Ministers have been able to allocate in SR04. But if there is a direct connection between this efficiency saving and the enhancement of a particular service please describe it here.

N/A

12. Gross/Net Cash Savings

12.1 Please set out the gross recurring saving and any offsetting recurring expenditure.

Gross Target: 20m. Costs of any consultant contribution not yet scoped.

12.2 Against what budget does this expenditure and saving fall?

Health Boards' Unified Budgets

12.3 Has this saving been built into your budget?

Yes, in that there is an assumption that Boards and prescribers will continually pursue the potential for prescribing efficiencies to offset rolling cost increases associated with greater use of effective therapies and costs of new drugs.

12.4 If so, what is the maximum allowable expenditure against the published budget data, in each year, for that saving to be delivered?

Health Boards establish local prescribing budgets on the basis of standard data which is available to other HBs and SEHD, and to achieve the optimum use of the totality of funds available to them. Savings against targets accrue directly to local budgets and can be used to cover the costs of other services.

SEHD do not publish forecasts for year on year prescribing costs.

12.5 If not, how do you propose to invest the additional cash back into public services?

N/A

12.6 What plans do you have to exceed the required saving? Explain by how much in each year.

Action has been taken to achieve supply side savings that will impact during 2005-6 and these are accounted for within other targets.

13. Time - release savings

13.1 Please explain any time-releasing savings indicated at question 3

N/A.

13.2 Please describe the method you plan to use to calculate the cash equivalent of those time release savings.

N/A

14. Measurement and Monitoring

14.1 How are you proposing to measure the expected efficiency benefits (e.g. in terms of costs, level of output or quality of service)?

National aggregation of local plans, which will establish local benchmarks in the light of the headings provided in the national co-ordinating plan..

14.2 What monitoring & reporting procedures will be put in place to measure the efficiency savings (How often will progress towards the target be monitored? Who will have lead responsibility for reporting progress and what procedures will be in place?)

Monitoring will be done in the SEHD, based on NSS ISD aggregation. There is extensive data available from NHS NSS Information Services Division to GP practices and Health Board prescribing advisers to allow their prescribing behaviour to be monitored. Availability however lags prescribing by 3-4 months. Monitoring will be quarterly -after availability of data- by each Health Board and will be aggregated centrally by NHS NSS.

This will be used by NHS NSS ISD to provide tailored reports for each Health Board, but in a format that is capable of aggregation to allow SEHD to monitor national progress.

14.3 Monitoring Data: Sources, validation and risks

  • What data will be used to measure progress? Is all the required information quantifiable and readily available? If not what action will be taken to rectify this?

  • What measures will be in place to validate the accuracy of the data? Who will take responsibility for this?
  • Are there any issues or risks relating to how you plan to use the data? (e.g. accuracy, difficulties in collection)

    See answer to previous question. Health Boards will be instructed to agree individual monitoring arrangements with NHS NSS ISD, and SEHD will agree with NHS NSS ISD the form of a national monitoring report to track overall progress..

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Page updated: Thursday, March 31, 2005