Leslie Galloway, EMIG Chairman, shared his analysis of VPAG. Here’s Charles’ key takeaways:
· The NHS VPAG rebate is £1bn over 3 years and so is a fixed rebate with risk share.
· Global Pharma CEOs have asked for lower rebates and a better deal, that has not been accepted by the NHS so the current situation is a no deal stalemate.
· Leslie thinks the rebate should be capped not fixed, which would allow for forecasting and budgetary flexibility.
Dave West , Deputy Editor HSJ (Health Service Journal) discussed the new 10 year NHS plan and explained that there will be a change from the current 42 to 26 ICBs (Integrated Care Boards). Above them will be 7 DHSC (Department of Health and Social Care) regions and above them the DHSC.
Jyotika Singh, Senior Principal Consultant HSJ Information, talked about the development of a single national formulary, which will need a single budget and needs to be clinically led and flexible enough to allow local development and implementation.
Bill Morgan, Senior Partner, Newmarket Strategy and ex-No 10 Adviser told the audience that NHS England is gradually and slowly being merged with DHSC, a process which will probably not be complete till spring 2027. He added that pharma needs to pin national economic problems and bad government decisions to VPAG (value based pricing and growth). This is more likely to influence treasury than leaving the UK market. Lastly, he said that the number of older people is going to increase dramatically in the next few years, with little growth in younger, working age population.
We look forward to the next meeting in November.