The UK body responsible for assessing the cost effectiveness of medical treatments is preparing for a 20% budget cut, its chief executive has announced.
The National Institute for Health and Clinical Excellence (NICE) – which is also about to take on an expanded role in setting research priorities – is making cuts despite the government ‘ring fencing’ health as it slashes public sector spending.
“NICE is targeting quite significant savings,” Andrew Dillon told reporters this morning, “20% out of our total budget.”
Last year’s budget for the institute was around £60 million, says Dillon, and with an expansion of its role this year’s will probably be around £74 million. From this, savings of around 10% next year and 10% the year after will be made.
“We’ve not been given that target,” he adds. “We’ve seen the writing on the wall.”
Dillon says that even though there is a ring fence around the budget of the UK’s National Health Service, there will still have to be savings made if the NHS is to continue to deliver the level of service that the public expects. NICE will assist with this by providing more “don’t do” recommendations on treatments that can be avoided and by increasing its guidance on when primary care doctors should – and shouldn’t – refer patients to hospitals.
Dillon also welcomed the new role set out for NICE in the recent government white paper on health. This envisions NICE offering guidance on research priorities.
“We’re very pleased to see that,” he said.
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“The Medical Research Council has awarded £2.3 million for new research into the academic methods underpinning advice given by NICE on how the NHS should make the most of its resources.”
“NICE’s role is set to expand significantly under plans outlined in the health White Paper.”