Oireachtas Joint and Select Committees

Thursday, 25 April 2013

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 40 - Health Service Executive
Health Service Executive Financial Statements 2011

12:10 pm

Mr. Tony O'Brien:

We put in place a very modest provision for the impact of the medicines management programme this year which is far below what we would hope it would achieve. We have done that in order to be conservative and not overly risk-taking. We have put in place a savings target of €20 million in relation to the medicines management programme, which is relatively modest and should be achievable. We have not yet built in for the impact of reference pricing because it is not yet legislated for, but we would expect that to have a very significant impact on the cost of drugs. To be fair, it is worth saying that the average ingredient cost of an item prescribed for the GMS has fallen from a peak of €18.97 in 2009 to a period where year to date in 2013 that is down to €13.43.

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