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

1:00 pm

Mr. Tony O'Brien:

I can give one example. We suggested with regard to PPIs that a switch to the lowest cost drug would have a value in excess of €10 million in a full year in one drug category, and that reference pricing should relate to the lowest cost-effective drug. In other words, we believe the preferred medicines programme we now have in place should be a basis for reference pricing in the future. One can go through every drug category. One would not be able to switch all patients because there are issues of tolerance and acceptability, so there has to be discretion at the margins. However, it is possible to calculate in every drug category what the effect of a major switch towards the lowest cost branded or generic drug would be. That type of information is available to the Department.