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In 2005 and 2006, the Department published three consultation papers addressing the supply of medical consumables to the NHS. These were “Arrangements for the provision of dressings, incontinence appliances, stoma appliances, chemical reagents and other appliances to primary and secondary care”, “Arrangements for the Provision of Dressings & Chemical Reagents to Primary Care” and “Arrangements for the provision of stoma and incontinence appliances and related support services to patients under Part IX of the Drug Tariff”. The Department has completed its current review of Dressings and Reagents and now proposes to address items and services related to stoma and incontinence appliances within Part IX of the Drug Tariff.

In this and two other related consultations, the Department is consulting on changes to certain payments for Part IX items and services and wishes to:

• Maintain, and where applicable improve, the current quality of care to patients and provide a consistent level of care;
• Secure value for money for the NHS;
• Ensure equitable payment for equivalent services and transparent reimbursement pricing;
• Work in partnership to deliver fair prices for the NHS and reasonable returns for suppliers and contractors;
• Facilitate the introduction of innovative solutions;
• Maintain local choice in the provision of services and;
• Keep administration arrangements to the necessary minimum.

The Department believes that the current Terms of Service arrangements and remuneration for some stoma and incontinence appliances do not deliver consistent levels of service provision nor represent value for money for the NHS.  It therefore proposes to both define the Terms of Service and adjust payment mechanisms, with effect from June 2007, to rectify this.

The Department seeks views on the proposed amendments to Terms of Service and remuneration arrangements.  Where appropriate, the Department would value quantitative information to support alternative proposals.

In a further consultation, “Adjustments to the regulatory Terms of Service of Pharmacy and Appliance Contractors within the Pharmaceutical regulations relating to Items in Part IX of the Drug Tariff” to be issued in February 2007, a proposal for the full amended Terms of Service will be published and your views sought.