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Medical Equipment: Prices

Volume 457: debated on Monday 5 March 2007

To ask the Secretary of State for Health whether the (a) Office of Fair Trading and (b) Competition Commission were consulted in drawing up the proposed pricing model in the Department of Health's Consultation Paper “Arrangements for the remuneration of services relating to appliances under Part IX of the Drug Tariff”. (119205)

The pricing model was not included in the consultation paper relating to arrangements for the remuneration of services relating to appliances within Part IX of the Drug Tariff, but was in a companion paper, “Arrangements for the reimbursement pricing of stoma and incontinence appliances under Part IX of the Drug Tariff’.

Neither the Office of Fair Trading nor the Competition Commission was consulted in drawing up the proposed pricing model. However, the proposed pricing model is based on economic principles recognised by both organisations with regard to pricing behaviour in competitive markets.