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UK firms welcome new price increase deal:

This article was originally published in Clinica

Executive Summary

Companies in the UK have welcomed the introduction of a new mechanism for establishing annual price increases for healthcare products prescribed by GPs and reimbursed by the government. Under an agreement with the Department of Health's Drug Tariff Section, companies will use a formula for establishing the maximum available price increase for products such as glucose testing strips and hypodermic syringes and needles. The formula consists of the "GDP deflator", which is currently 2.75%, minus an agreed "efficiency deduction" of 0.75%. The Association of British Health-Care Industries comments that this is the first time it has had a dedicated group lobby for a price increase. The agreement, which will be reviewed after three years, covers products listed under part IX of the Drug Tariff.






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