State drugs, medicines bill up €65m

Estimates exceeded: The State's bill for drugs and medicines, both in hospitals and in the community, soared by over €65 million last year - significantly ahead of expectations - according to an internal financial report prepared for the board of the Health Service Executive (HSE).

The report says the growth in drug costs, which in one category increased by 33 per cent, was considerably in excess of inflation provisions within the estimates process.

It states that the unexpected surge in expenditure on drugs and medicines had been funded "by timing decisions on a range of other services".

The report, drawn up by HSE management, says within six of the country's major acute hospitals, drug costs increased by an average of 19 per cent.

It also says there were varying degrees of increase in the cost of drugs in the community.

The report maintains that the cost of drugs in major acute hospitals, including the area of cancer and infection control, increased by nearly €15.5 million last year to just under €99 million.

It says that the bill for "high-tech medicines", such as for HIV, multiple sclerosis and arthritis, increased by 33 per cent.

The bill for this category of drugs increased by more than €11.5 million to some €47 million last year.

The report maintains that the cost of drugs for long-term illnesses such as diabetes increased by 17 per cent to €116 million.

The financial report for the HSE board also states that the Drug Payment Scheme, under which families pay a maximum of €85 per month on drugs and medicines, with the State reimbursing the remainder of the bill, cost 8 per cent more last year.

It says that, overall, the cost of the Drug Payment Scheme increased by €21.5 million last year to nearly €303 million.

The report also found that the demand-led schemes, including domiciliary care grants and hardship medicines, were €72 million over budget for the year.

The rise in the cost of drugs and medicines, particularly in the State reimbursement schemes, has been a matter of concern to the Government for some time and it is currently reviewing the cost of all drugs and medicines reimbursed by the State.

The Government is expected to seek new measures to encourage greater prescribing of generic drugs - which tend to be cheaper than brand-name products - in talks on new agreements with both general practitioners and the pharmaceutical industry this year.

The talks on a new pricing agreement with the pharmaceutical industry is expected to get underway shortly.

The HSE is also expected to table a new draft contract for general practitioners before the annual general meeting of the Irish Medical Organisation (IMO) later this month.