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Top-up payments for private drugs


5 June 2009


During 2008, the previous Department of Health policy, suggesting that patients lose their entitlement to NHS treatment should they pay privately for something in the same episode of care, for instance the latest cancer drug which the NHS would not fund automatically, caused a media furore. The problem was compounded by the fact that some NHS bodies used a more liberal interpretation of the policy to ensure patients did not suffer this fate, seemingly confirming accusations of a ‘postcode lottery’.

Professor Mike Richards (“the Cancer Tsar”) was asked to review the issue, publishing his results in November 2008. He concluded that the policy was untenable and made a compromise proposal to allow patients to privately top up their treatment as long as it was administered “separately” in time and locality to the NHS care, with the patient concerned also having to pay for any associated costs of that extra treatment, i.e. tests, follow up and the management of any complications.

Alongside the review was published draft guidance which, following a consultation period, was finalised in March 2009 (Guidance on NHS Patients Who Wish to Pay for Additional Private Care). It is clear that the guidance is an attempt to address real concerns from hospitals and PCTs about implementing the new policy:

  • “Separate” – how is it possible for hospitals to separate drug treatment in time and place, especially when some drugs are meant to be combined, or to distinguish the complications of NHS drugs from private ones? Even if a complication could be attributed to private treatment, could NHS hospitals simply turn the patient away? Moreover, surely “separate” care contradicts the notion of “continuity” of care and complicates matters of communication, clinical governance and patient safety?
  • PCTs - the review accuses PCTs of using the exceptional funding process as a substitute for a proper commissioning decision. It recommends that PCTs collaborate and pool resources and make more “proactive decisions”. Are PCTs simply going to be pressured to fund more drugs? How can PCTs maintain their duty to make local decisions when they are being encouraged to collaborate?
  • Doctors – doctors are asked to exhaust all avenues of NHS funding and also to provide patients with written information about private treatment options. Is it conceivable that they can add this task to the others they already perform? Moreover, if the doctor is also involved in the private treatment, this gives them a clear conflict of interest whereby they may be tempted to lead people down the private route.
  • Litigation - will greater involvement of private providers at the same time as NHS care lead to more litigation over where liability lies when things go wrong? What indemnity provisions will be required in the first place?
  • Other services – while the review does not address services other than drugs, it will surely be only a matter of time before patients also enquire about purchasing better, private services/equipment on top of that which they receive on the NHS anyway?

So how do you get it right?

Evidently, there are major implications for hospitals and PCTs in implementing the new policy, in terms of ensuring they remain compliant with NHS values (including having regard to the NHS Constitution as introduced by the draft Health Bill), their statutory duties to safeguard patient care, regulate the doctors they employ and have adequate indemnity arrangements in place.

Our health team has a wealth of experience in working with health bodies and can help in a number of ways:

  • Undertaking a review of policies and procedures currently in place within Trusts so as to ensure fairness, transparency, consistency and compliance with legislation and guidance
  • Advising on the safeguards necessary for hospitals to ensure NHS and private care is kept as separate as possible and to deal with the eventuality of when it is not
  • Working with local private providers to ensure that they have appropriate arrangements in place to work effectively with the NHS hospitals concerned
  • Ensuring that doctors are adequately validated, that their NHS duties are not compromised by the opportunity of private work and that they are aware of the requirements of the new policy in terms of informing the patient of all available options and, more importantly, gaining their informed consent of any such treatment
  • Ensuring there are adequate indemnity provisions in place and advising on any litigation matters
  • Advising PCTs on their exceptional funding policies and procedures

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picture of Simon Tait
Simon Tait
0115 976 6559
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The content of this bulletin is provided for the purposes of general interest and information. It contains only brief summaries of aspects of the subject matter and does not provide comprehensive statements of the law. It does not constitute legal advice and does not provide a substitute for it.

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