The wholesalers send their invoices
the ingredient cost
drugs to the Boardby the 2nd day
each month in respect
deliveries made the previous month. TheBoard is contractually obliged to pay these invoices by the 6th day of each month.The Board deducts an agreed 5% discount on invoices it receives from wholesalers
high tech drugs to the pharmacists. The Board pays the wholesalerinvoices prior
receiving the corresponding delivery dockets
the pharmacists.The Board then bills the relevant Health Board with the ingredient cost
the drugsdispensed inclusive of VAT, where applicable, less the 5% discount.
The cost of the scheme has increased significantly each year since it was introduced inlate 1996. The following table shows the increase in costs each year from 1997 andthe value of High Tech Drugs on hand as recorded in the Board's FinancialStatements.
High Tech Drugs SchemeEstimatedExpenditure% IncreaseValue ofYear
199727,212,5311,473,3901998 33,715,059 242,177,0681999 42,303,174 552,177,0682000 50,505,842 86 3,570,1542001 63,791,527 134 4,127,7512002 83,432,337 2075,696,6642003106,818,906 2938,014,825The expenditure in
of €107m represents 7% of the Board's total expenditure
the year. The projected expenditure on the scheme for 2004 is set to increase to€140m. Also, commensurate with the increase in the annual expenditure there hasbeen an increase in the value of the stocks on hand at the end of each year.The main cost drivers
the scheme are the ingredient cost
the medicines, thenumber and the type
reimbursement under the scheme, thenumber
patients to whom such products are prescribed and the number
itemsprescribed. The drugs range in price
€20.79 to €7,951.22 per pack. At year-end2003 there were 225 items approved
dispensing which included 11 new products(new chemical entities) introduced in 2003.