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<p>The Pharmaceutical Price Regulation Scheme (PPRS) as agreed with the Association
of the British Pharmaceutical Industry (ABPI) does not cover the onward financial
flows of payments to the National Health Service which are subject to the Government
accounting and budgeting rules in the normal way. In particular there was no agreement
to hypothecate PPRS payments. The Department has subsequently had a number of discussions
with the ABPI and NHS England about the onward financial flows.</p><p> </p><p> </p><p>
</p><p>In respect of England, the anticipated payments in 2014-15 have been passed
on to NHS England through the mandate and as such were included within commissioner
allocations. The same is expected to apply in 2015-16. This means that the effect
of the deal is felt across the NHS through the general funding allocations to clinical
commissioning groups.</p><p> </p><p> </p><p> </p><p>The Government is committed to
improving access to clinically and cost-effective medicines including innovative new
medicines. As part of implementing the PPRS, NHS England and the ABPI are discussing
how best to improve access to and optimise patient outcomes from these medicines.</p><p>
</p><p><strong> </strong></p><p> </p><p><strong> </strong></p><p> </p>
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