Your monthly round-up of market access news
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Thank you to all those who attended the MAP conference and especially to our speakers who all presented fascinating and insightful talks!
Please find below a summary of the day...
We hope that those of you who attended the conference found it as engaging and as useful as we did and please note that all of the presentation slides are now available to subscribers on our conference page.
This new section on the MAP MedTech UK site has been created to provide a simple overview of MIB production and aims to answer common questions such as:
Who is the key audience for a MIB?
What does creating a MIB involve?
Who is involved in producing a MIB?
How are topics identified for MIB production?
When does MIB production become Public?
How long does the process take?
What information will manufacturers be expected to provide?
What are the benefits of a MIB and how should it be used?
When will we leave the EU?
Article 50 notification is likely to be delayed until Spring 2017, which would lead to an exit from the EU in Spring 2019, unless the remaining EU countries agree unanimously to extend this deadline. A long-term relationship will then be established under a new Treaty, but it may take years to complete this transition.
What is the most difficult issue?
A crucial issue is whether the UK joins the European Economic Area (EEA) as a non-EU member, like Iceland, Liechtenstein and Norway. This option would give the UK access to the single market, combined with the free movement of capital and labour. This is seen by many as a highly desirable aim, and would avert many of the disadvantages of leaving the EU.
The main problem with the EEA is that the free movement of labour is incompatible with the aim of cutting UK immigration from within the EU. This issue was a driving force behind the EU referendum result and the Government has made clear that this is an absolute necessity. The EU leaders have made clear that the free movement of labour is an essential precondition for joining the EEA. As David Davis, the Secretary of State for Exiting the European Union, told Parliament on 5th September, his personal view is that it is improbable that all EU countries (the final negotiated agreement has to be unanimous) would agree to such an arrangement.
How is healthcare affected?
If EEA membership is not possible, the life sciences industry may be adversely affected by restrictions on capital markets access, reduced inward investment and moving the location of the European Medicines Agency (EMA) away from the UK.
However, the EU external tariff on medicines, vaccines and blood is nil, so it would be a simple question of maintaining this approach for the UK.
In bilateral trade negotiations, the UK could aim to secure EMA and / or FDA approvals via the Medicines and Healthcare Products Regulatory Agency (MHRA). Other countries such as Australia, New Zealand and Switzerland have negotiated fully operational Mutual Recognition Agreements with the EMA, so this seems a reasonable aim and could be extended to include the FDA.
Mutual recognition and common standards in others areas, e.g. devices, are likely to be agreed, and UK participation in multi-national research activity will be essential. For UK healthcare, and the life sciences industry, access to skills and staffing is vital, and the key will be how visas can be secured in the numbers needed.
What are the opportunities?
The forthcoming Accelerating Access Review (AAR) paper from the Government is expected to address many of the key issues facing the UK science base and how a more competitive business environment can be created. Of particular interest is whether the Government will look at speeding up the NICE and NHS processes for new medicines, and whether a lower low level of Corporation Tax will be introduced – perhaps building upon the UK Patent Box which provides a 10% Corporation Tax rate on qualifying profits subject to certain restrictions.
MAP Summary:
(This document accompanies the NHS Operational Planning and Contracting Guidance 2017-19 issued in the same day.)
Its general purpose is to set out the ways by which NHSE can improve commissioning and contracts as well as review and transform specialised services. Much of what the document puts forward is already in place or announced, but some points are worth noting.
Spending
Although NHSE has set overall financial spending targets for NHS providers to address their deficits (aiming for a balancing starting position for 2017/18), no specific targets have been set for specialised services.
Instead there is a general statement that “Specialised services make up over 15% of the NHS spending, and judicious stewardship will be crucial to meeting the financial challenges facing the NHS, both nationally and locally.” (p 9)
Transfer of responsibilities
For contracts agreed for April 2017 NHS England is not intending to transfer commissioning responsibilities and budgets for any of the 149 services to CCGs. However Appendix B (p 49-50) sets out a long list of the services that might be most appropriate for locally-led commissioning.
Cancer services
During the next two years a review of cancer services will be completed to enable the development of innovative new care models and strengthened provider networks. The review will include radiotherapy, chemotherapy, cancer surgery, children and young person’s cancer services and a second phase of PET CT scan. (p 11)
Contractual Requirements
NHSE will remain the contracting body for all patients across England treated for services within the scope of specialised commissioning for contracts awarded from April 2017. (p17)
This NHSE paper on specialised services paper can be accessed by clicking here.
A new Government health Bill is being introduced today called Health Service Medical Supplies (Costs).
This bill is to make provision in connection with controlling the cost of health service medicines and other medical supplies; to make provision in connection with the provision of pricing and other information by those manufacturing, distributing or supplying those medicines and supplies, and other related products, and the disclosure of that information; and for connected purposes.
The Official Journal (French Official Gazette) on Friday September 2nd published a Notice of Proposed rate reductions for a range of categories of medical devices, especially for the treatment of apnea hypopnea syndrome obstructive sleep (OSAHS) by continuous positive airway pressure (CPAP).
GP Online reports that 23% of CCGs and 47% of NHS trusts have said they expect to end 2016/17 in deficit – meaning that the proportion of CCGs predicting a deficit has doubled since this time last year. One of the main problems is believe to be NHS workload.
NHS England have published national advice for local health and social care leaders preparing local Sustainability and Transformation Plans. The advice sets out how to put the communities they serve at the heart of their work.