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Chamber and committees

Public Audit Committee, 17 Jun 2009

Meeting date: Wednesday, June 17, 2009


Contents


Section 23 Reports (Responses)


“Managing the use of medicines in hospitals—A follow-up review”

The Convener:

Item 5 is a section 23 report. We have received a response from the accountable officer on the Auditor General's report "Managing the use of medicines in hospitals—A follow-up review". Do members have any questions or comments on the response?

Cathie Craigie:

I am a wee bit concerned about the answer to our second question. If I remember our discussion on the matter correctly, everybody thought that the system that is used in NHS Ayrshire and Arran is a good one that should be rolled out if it is proven to be able to do the job. However, the responses to our first two questions say that, even if work is done to prove that that model could work throughout the NHS in Scotland, it will still be up to each health board to decide whether it wants a stand-alone system. I am all for local democracy and people taking decisions at a local level, but those decisions must take cost effectiveness into account. If we have put in a lot of work, nationally, to find out whether that is a good system, I do not see the clinical or cost benefits of telling boards that they have the choice to go with the system that we recommend or to pick up a system of their own. Am I right in my understanding of that response? Is that what it is saying, and is that the best use of resources to date and in the future?

Anne McLaughlin:

The response talks about health boards following that example if they feel that the business case is proven. It states:

"we intend to carry out an assessment of the experience in Ayrshire and Arran to help inform such Board level business cases."

When we discussed the issue, did we consider writing to the health boards individually?

The Convener:

I do not think that we did. One of our problems is that, although in considering the report and following it up we are commenting on the use of resources, we are starting to talk about clinical and policy issues. We might need to refer the matter to the Health and Sport Committee for its consideration, because it would not be appropriate for us to go into detail on whether, from a practice perspective, the proposed approach is the right way to proceed. We have made some comments on effectiveness and efficiency. We must tread a fine line.

George Foulkes:

I understand what the convener says. In fact, that is one of my constant frustrations with the Public Audit Committee's remit.

I find the response extremely strange. We discussed the report on a Wednesday and I met Lothian NHS Board on the Friday. I raised two issues: the hospital electronic prescribing and medicines administration system, and generic prescribing. The board told me that it was developing its own system of electronic prescribing and gave me the percentage of generic medicines that it uses, which is extremely high, as it has been working on the issue.

However, the response says:

"Outwith NHS Ayrshire and Arran there are no systems in place".

Do these guys in the civil service in Edinburgh really know what is going on? I think that they just sit there and send letters out; I do not think that they ever get out and about to find out what is happening in the health boards. The Auditor General does. Are other members happy about that?

Anne McLaughlin made a very good point. Why do we not write to the health boards directly, rather than ask the civil service to do it, because it does not seem to be doing anything? To pick up what Nicol Stephen said about the Danish system, instead of relying on the civil service, at some point we ought to visit one of the health boards to follow up an important issue and find out what is happening.

I do not know whether anyone from Audit Scotland can throw any light on the matter but, again, we need to be careful not to go beyond our remit, which we will do if we start to examine clinical practice policy.

Mr Black:

The team has just passed me a copy of the supplement to the follow-up report, which contains a paragraph that might be helpful. It might be that the issue is to do with the nature of the information that is communicated. The HEPMA system is a general system for hospital prescribing, but a paragraph in the supplement to the follow-up report talks about

"Specialty-specific electronic prescribing and medicines administration systems".

It says:

"Seven NHS boards have at least one electronic prescribing and medicines administration system for an individual specialty".

NHS Lothian is one of half a dozen boards that have

"the oncology system called Chemocare"

and one of two boards that have a renal system.

What comes out from that report is that, as ever, it is a moving picture. It is clear that NHS Lothian was certainly active in the field of electronic prescribing but that it did not have a total system at the time that we produced our report.

The Convener:

A number of options are open to us. We could go back to the accountable officer and ask for further information, should we need it. We must also decide whether there is an issue for the Health and Sport Committee to consider. Is there any information that members would like Kevin Woods to provide?

George Foulkes:

When we discussed the report, it emerged that a huge amount of money was spent on medicines in hospitals. I worked out what percentage it was of the total block grant, but I forget the figure. There is a great potential for saving, given what is said in the excellent report that we received from the Auditor General. However, all that we have done is send a letter to the accountable officer, who has given us—I do not know why Andrew Welsh, who usually says these things, refuses to comment—just a lot of verbiage that does not deal with all the points that we raised.

Willie Coffey:

I am inclined to agree with what the convener said. It is clear from the report that a patient management system is being rolled out, given that the contract for it will be awarded in the autumn. From my reading of the report, there is scope for boards to choose whatever is appropriate to their situation. That is a matter for clinical judgment, of which we need to be respectful. Progress seems to be being made in gathering information and on prescribing mechanisms, but the clear message from the response is that the decisions should be based on clinical judgment, which can be applied more appropriately by boards. I am quite happy with that.

Andrew Welsh:

I agree with that. The great danger is that we end up in a position of telling boards what their policy should be. Cathie Craigie mentioned the need for cost effectiveness, which is what we hope systems will achieve. The response states:

"It remains open to Boards to procure a stand-alone system if they believe there is a good business case. Indeed, we intend to carry out an assessment of the experience in Ayrshire and Arran to help inform such Board level business cases."

Ultimately, such matters are for board policy. We should seek to ensure that boards are better informed, but we have been told that that is what will happen. To start deciding what the policy would be in individual health boards would be a dangerous road for the committee to go down. We can encourage boards to be involved in best practice.

The Convener:

Do we require additional specific information from the accountable officer? If not, I suggest that we note the response and refer it to the Health and Sport Committee for its interest. If we need further information, let us ask for it. I am in the hands of committee members.

I think that Andrew Welsh has been Nicola-ed.

Will George Foulkes explain that? It is news to me.

He can explain it outside the committee.

I can assure the committee that I have not been got at by anyone.

The Convener:

Let us leave all that aside. Do we require specific further information from Kevin Woods?

As the answer is no, we will note the response, thank Audit Scotland for its report and refer the matter to the Health and Sport Committee for its interest.


“Drug and alcohol services in Scotland”

The Convener:

Item 6 is consideration of a response from the accountable officers on the Auditor General's report "Drug and alcohol services in Scotland".

It strikes me that the response, which is on an issue of huge significance, is fairly superficial. That is quite worrying. For example, the response mentions the intention to

"decrease the estimated number of problem drug users in Scotland by 2011".

Well, what is the starting point? If we do not know what the starting point is, how will we know whether a decrease has been achieved? Mention is also made of the intention to

"reduce alcohol related admissions by 2011."

Again, what is the starting point? All the way through, the response mentions some noble intentions, but it is very light on specifics.

What do other members feel?

I do not think that it is worth saying anything, because we will be told that such matters are not for this committee.

I do not think that that is fair. Some thing are relevant for this committee, but we should not go beyond our remit into—as happened under the previous item—issues of clinical practice and policy, which are not matters for this committee.

Murdo Fraser:

Given the response from the accountable officers, much of this is clearly work in progress that is at an early stage of development. Perhaps, rather than pursuing the matter now, we should come back to it in six months' or a year's time and ascertain what progress has been made by then. Perhaps it is a matter for the Health and Sport Committee. It would certainly be within our remit to return to the accountable officers in six months and ask where they have got to with all the answers.

The Convener:

I would certainly be interested to know what the starting point is for their measurements. Otherwise, we will not know whether progress is being made. For example, do we see anywhere the number of residential placements that are to be made available, which is apparently a fundamental part of the policy? Can anyone from Audit Scotland help us with that?

Claire Sweeney (Audit Scotland):

The response outlines the anticipated plans for drug and alcohol services, but the committee is raising specific concerns about those services, as does Audit Scotland's report. The response leaves quite a few questions outstanding about the detail of what is happening. There are some long-term plans, but some immediate issues could be addressed now. There is a lack of clarity about what is being done now, and it might be interesting to explore that.

Could we go back to both the accountable officers, Robert Gordon and Kevin Woods, and ask for some further detail, so that we can make an informed comment?

Members indicated agreement.


“Central government's use of consultancy services—How government works”

The Convener:

Item 7 is on a further section 23 report. We have a response from the accountable officer on "Central government's use of consultancy services".

I seek clarification. In response to the first of the committee's questions, the letter from Stella Manzie says:

"Under the Business Appointment Rules, in certain circumstances civil servants must apply to the UK Civil Service body Advisory Committee on Business Appointments (ACOBA) for permission to accept an outside appointment".

Do we know what those circumstances are?

Angela Cullen (Audit Scotland):

No, we do not. We can find out and let you know, but I cannot answer that question at this point.

Okay. Are there any other thoughts or comments on the response?

Willie Coffey:

This is on the committee's second question, about approved suppliers of consultancy services and so on. I was interested in the response on why the Government chooses a framework system, rather than approved supplier lists. The response says:

"This is because approved lists are usually based only on suppliers' qualifications and capability".

I would have thought that the whole thing is predicated on their performance. If consultants do a good job and are seen to have done a good job, that, ultimately, is what gets them on an approved supplier list. It should be as a result of their being good at what they do, rather than the qualifications that they bring. I am a bit curious about that. There is still merit in pursuing the idea that we should have approved supplier lists that include assessments of performance when services are given to the public sector and the public purse pays for those services.

Presumably, if someone is chosen from an approved supplier list, they will also have to satisfy the framework contract, establishing their pricing and conditions, or are the two things mutually exclusive?

Mr Black:

The general recommendation in our report was that greater use should be made of framework contracts, for the reasons that are given in Stella Manzie's response, which says that

"approved lists are usually based only on suppliers' qualifications and capability, whereas framework contracts also"

allow the Government to

"establish pricing and contract condition".

Framework contracts tend to be a bit more robust and comprehensive.

Willie Coffey:

That touches on a theme that we have visited on several occasions, regarding whether we are getting value for money. That can be established only by assessing what we get in the end. If someone does not provide good service, I imagine that they will be neither on an approved supplier list nor signed up to a framework contract. That element must be there. I would like some clarification as to whether that part of the assessment process is carried out at the end of a given piece of work.

We can go back to Stella Manzie and ask for that further clarification. Otherwise, we note the response.

Cathie Craigie:

I make just one further point in the passing. I note from the response that the civil servants are going to have some awareness raising of the rules that apply to them when they take on posts as consultants within two years of retirement. I suppose that that awareness raising is to be welcomed.