19.01.17
NICE cost recovery plans postponed until DH finishes life sciences strategy
NICE’s plans to recover its appraisal costs on drugs and technology have been put on hold.
The proposals, which would introduce a charge to companies that create the resources and request NICE’s specialist guidance, have been postponed indefinitely until the government completes its life sciences strategy.
NICE had been discussing the proposals with organisations representing the health industry since last summer but it now appears that they will be held back until further notice.
Explaining the decision, the organisation’s chief executive, Sir Andrew Dillon, said: “We have been working to create a new funding model for technology evaluation to meet the government’s challenge to drive efficiency and deliver better value.
“We’ve agreed with the Department of Health to wait for the government’s life sciences strategy to be completed before we move forward with our plans.”
Currently all NICE appraisals of technology are funded by a direct grant from the DH, restricting its appraisal work to inflexible annual limits.
NICE has said that if it were able to charge companies for appraisals, it would allow the body to be more flexible and more responsive to industry demand for guidance.
In July 2015, the Cabinet Office recommended that NICE consider introducing charges for its appraisals activity as part of its triennial review of the body, which are standard for all non-departmental government bodies surviving after the Public Bodies Act 2011.
The government reinforced this opinion in its DH’s priorities for NICE for 2015-16 as part of the Spending Review.
NICE will continue to test its existing proposal of the charges against the feedback it has already received until it is able to proceed with its plans.
In our Nov/Dec 16 issue, NHE reported about NICE’s joint consultation with NHS England on proposals to introduce a £20m budget threshold before seeking a special commercial agreement with supplying companies, potentially affecting a fifth of new treatments. The consultation is now complete and the pair are set to make their final decision before the start of the new financial year.