6
Accepted
The Department’s business case targeted annual savings of £100 million in pharmacy margins through early...
Conclusion
The Department’s business case targeted annual savings of £100 million in pharmacy margins through early payment settlements with drug manufacturers, based on advice supplied by Lex Greensill in his capacity as government adviser. The Department has stated that it is unable to quantify the savings from the early payment scheme to pharmacies. HM Treasury remained unconvinced that there was market failure or that government needed to be involved but approved the business case in December 2012.7 2 C&AG’s Report, Investigation into supply chain finance in the NHS, Session 2021–22, HC 734, 29 October 2021 3 C&AG’s Report, para 1 4 C&AG’s Report, para 7 5 C&AG’s Report, paras 8, 9 6 C&AG’s Report, para 2.8 7 C&AG’s Report, para 2.9 10 The pharmacy early payment and salary advance schemes in the NHS
Government Response Summary
The government agrees with the committee's item and reissued updated guidance (DAO 03/22) in March 2022 to Accounting Officers, reiterating their responsibilities regarding novel and complex financing arrangements.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 In June 2019, HMT published DAO 02/19, which provided guidance to Accounting Officers in respect of novel and complex financing arrangements. 1.3 Following the Committee’s recommendation, on 18 March 2022 HMT reissued an updated version of DAO 02/19 (DAO 03/22). This reissued DAO reiterates accounting officers’ responsibilities in respect of such schemes and sets out the Committee’s recommendation.
Source
Committee
Public Accounts Committee
Inquiry
NHS supply chain finance
Report
Thirty-Fifth Report - The pharmacy early payment and salary advance schemes in the NHS
04 Feb 2022
HC 745
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.5 yrs
Report published
04 Feb 2022