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National Health Service Act 1977

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[F1SCHEDULE 12AE+W+S Expenditure of Health Authorities and Primary Care Trusts

Textual Amendments

F1Sch. 12A inserted (1.9.1999 for E. for specified purposes and 1.4.2000 for E. for further specified purposes and otherwise prosp.) by 1999 c. 8, ss. 4(1)(4), 67(1); S.I. 1999/2342, art. 2(1)(4), Schs. 1, 3

Modifications etc. (not altering text)

Health Authorities: general Part II expenditureE+W+S

F21(1)In section 97 above and this Schedule, general Part II expenditure, in relation to a Health Authority, means expenditure of the authority which—E+W+S

(a)is attributable to the payment of remuneration to persons providing services in pursuance of Part II of this Act, and

(b)is not excluded by sub-paragraph (2) below.

(2)Expenditure is excluded if it is attributable to—

(a)the reimbursement of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services),

(b)remuneration referable to the cost of drugs,

(c)remuneration paid to persons providing additional pharmaceutical services (in accordance with directions under section 41A above), in respect of such of those services as are designated, or

(d)remuneration of a designated description which is determined by the Health Authority and paid to persons providing general medical services in pursuance of Part II.

Textual Amendments

F2Sch. 12A para. 1 inserted (1.9.1999 for E. and otherwiseprosp.) by 1999 c. 8, ss. 4(1)(4), 67; S.I. 1999/2342, art. 2(1), Sch. 1

Health Authorities: main expenditureE+W+S

F32(1)In section 97 above, main expenditure, in relation to a Health Authority and the year in question, means—E+W+S

(a)expenditure of the authority mentioned in sub-paragraph (2) below,

(b)any other expenditure of the authority attributable to the performance of their functions in that year (other than general Part II expenditure and remuneration referable to the cost of drugs), and

(c)expenditure attributable to remuneration referable to the cost of drugs for which the authority are accountable in that year (whether paid by them or another authority).

(2)The expenditure referred to in sub-paragraph (1)(a) above is expenditure attributable to—

(a)the reimbursement in that year of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services),

(b)remuneration paid in that year to persons providing additional pharmaceutical services (in accordance with directions under section 41A above), in respect of such of those services as are designated, or

(c)remuneration of a designated description which is determined by the Health Authority and paid in that year to persons providing general medical services in pursuance of Part II.

Textual Amendments

F3Sch. 12A para. 2 inserted (1.9.1999 for E. and otherwiseprosp.) by 1999 c. 8, ss. 4(1)(4), 67; S.I. 1999/2342, art. 2(1), Sch. 1

3(1)For each financial year, the [F4National Assembly for Wales] shall apportion, in such manner as [F5it] thinks appropriate, among all Health Authorities the total of the remuneration referable to the cost of drugs which is paid by each Health Authority in that year.E+W+S

(2)A Health Authority are accountable in any year for remuneration referable to the cost of drugs to the extent (and only to the extent) that such remuneration is apportioned to them under sub-paragraph (1) above.

(3)Where in any financial year any remuneration referable to the cost of drugs for which a Health Authority are accountable is paid by another Health Authority, the remuneration is to be treated (for the purposes of sections 97 and 97A above) as having been paid by the first authority in the performance of their functions.

(4)The [F4National Assembly for Wales] may, in particular, exercise [F6its discretion] under sub-paragraph (1) above—

(a)so that any apportionment reflects, in the case of each Health Authority, the financial consequences of orders for the provision of drugs, being orders which in [F7the Assembly’s opinion] are attributable to the authority in question,

(b)by reference to averaged or estimated amounts.

(5)The [F4National Assembly for Wales] may make provision for any remuneration referable to the cost of drugs which is paid by a Health Authority other than the Health Authority which are accountable for the payment to be reimbursed in such manner as [F8the Assembly] may determine.

PCTs: general Part II expenditureE+W+S

4(1)In section 97C above and this Schedule, general Part II expenditure, in relation to a Primary Care Trust, means expenditure of the trust which—E+W+S

(a)is attributable to the payment of remuneration to persons providing services in pursuance of Part II of this Act, and

(b)is not excluded by sub-paragraph (2) below.

(2)Expenditure is excluded if it is attributable to—

(a)the reimbursement of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services), F9. . .

[F10(aa)remuneration referable to the cost of drugs,

(ab)remuneration paid to persons providing additional pharmaceutical services (in accordance with directions under section 41A above), in respect of such of those services as are designated, or]

(b)remuneration of a designated description which is determined by [F11the trust] and paid to persons providing general medical services in pursuance of Part II.

PCTs: main expenditureE+W+S

5(1)In section 97C above, main expenditure, in relation to a Primary Care Trust and the year in question, means—E+W+S

(a)expenditure of the trust mentioned in sub-paragraph (2) below, F12. . .

(b)any other expenditure of the trust attributable to the performance of its functions in that year [F13(other than general Part 2 expenditure and remuneration referable to the cost of drugs), and]

[F14(c)expenditure attributable to remuneration referable to the cost of drugs for which the trust is accountable in that year (whether paid by it or by another trust).]

(2)The expenditure referred to in sub-paragraph (1)(a) above is expenditure attributable to—

(a)the reimbursement in that year of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services), F15. . .

[F16(aa)remuneration paid in that year to persons providing additional pharmaceutical services (in accordance with directions under section 41A above), in respect of such of those services as are designated, or]

(b)remuneration of a designated description which is determined by [F17the trust] and paid in that year to persons providing general medical services in pursuance of Part II.

[F186(1)For each financial year, the Secretary of State shall apportion, in such manner as he thinks appropriate, among all Primary Care Trusts the total of the remuneration referable to the cost of drugs which is paid by each Primary Care Trust in that year.E+W+S

(2)A Primary Care Trust is accountable in any year for remuneration referable to the cost of drugs to the extent (and only to the extent) that such remuneration is apportioned to it under sub-paragraph (1) above.

(3)Where in any financial year any remuneration referable to the cost of drugs for which a Primary Care Trust is accountable is paid by another Primary Care Trust, the remuneration is to be treated (for the purposes of sections 97C and 97D above) as having been paid by the first trust in the performance of its functions.

(4)The Secretary of State may, in particular, exercise his discretion under sub-paragraph (1) above—

(a)so that any apportionment reflects, in the case of each Primary Care Trust, the financial consequences of orders for the provision of drugs, being orders which in his opinion are attributable to the trust in question,

(b)by reference to averaged or estimated amounts.

(5)The Secretary of State may make provision for any remuneration referable to the cost of drugs which is paid by a Primary Care Trust other than the trust which is accountable for the payment to be reimbursed in such manner as he may determine.]

Local Health Boards: general Part 2 expenditureE+W+S

[F196A(1)In section 97F above and this Schedule, general Part 2 expenditure, in relation to a Local Health Board, means expenditure of the Board which—

(a)is attributable to the payment of remuneration to persons providing services in pursuance of Part 2 of this Act, and

(b)is not excluded by sub-paragraph (2) below.

(2)Expenditure is excluded if it is attributable to—

(a)the reimbursement of expenses of persons providing services in pursuance of Part 2 which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services),

(b)remuneration referable to the cost of drugs,

(c)remuneration paid to persons providing additional pharmaceutical services (in accordance with directions under section 41A above), in respect of such of those services as are designated, or

(d)remuneration of a designated description which is determined by the Board and paid to persons providing general medical services in pursuance of Part 2.

Local Health Boards: main expenditureE+W+S

6B(1)In section 97F above, main expenditure, in relation to a Local Health Board and the year in question, means—

(a)expenditure of the Board mentioned in sub-paragraph (2) below,

(b)any other expenditure of the Board attributable to the performance of its functions in that year (other than general Part 2 expenditure and remuneration referable to the cost of drugs), and

(c)expenditure attributable to remuneration referable to the cost of drugs for which the Board is accountable in that year (whether paid by it or by another Board).

(2)The expenditure referred to in sub-paragraph (1)(a) above is expenditure attributable to—

(a)the reimbursement in that year of expenses of persons providing services in pursuance of Part 2 which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services),

(b)remuneration paid in that year to persons providing additional pharmaceutical services (in accordance with directions under section 41A above), in respect of such of those services as are designated, or

(c)remuneration of a designated description which is determined by the Board and paid in that year to persons providing general medical services in pursuance of Part 2.

6C(1)For each financial year, the National Assembly for Wales shall apportion, in such manner as it thinks appropriate, among all Local Health Boards the total of the remuneration referable to the cost of drugs which is paid by each Local Health Board in that year.E+W+S

(2)A Local Health Board is accountable in any year for remuneration referable to the cost of drugs to the extent (and only to the extent) that such remuneration is apportioned to it under sub-paragraph (1) above.

(3)Where in any financial year any remuneration referable to the cost of drugs for which a Local Health Board is accountable is paid by another Local Health Board, the remuneration is to be treated (for the purposes of sections 97F and 97G above) as having been paid by the first Board in the performance of its functions.

(4)The National Assembly for Wales may, in particular, exercise its discretion under sub-paragraph (1) above—

(a)so that any apportionment reflects, in the case of each Local Health Board, the financial consequences of orders for the provision of drugs, being orders which in the Assembly’s opinion are attributable to the Board in question,

(b)by reference to averaged or estimated amounts.

(5)The National Assembly for Wales may make provision for any remuneration referable to the cost of drugs which is paid by a Local Health Board other than the Board which is accountable for the payment to be reimbursed in such manner as the Assembly may determine.]

InterpretationE+W+S

7(1)In this Schedule—E+W+S

  • designated” means designated in writing by the Secretary of State [F20or, as the case may be, the National Assembly for Wales](and different designations may be made for different purposes),

  • drugs” includes medicines and listed appliances (within the meaning of section 41 above),

  • “pharmaceutical services” does not include additional pharmaceutical services.

  • [F21“local pharmaceutical services” has the meaning given by paragraph 1(3) of Schedule 8A to this Act; “remuneration referable to the cost of drugs” includes (except in paragraph 1(2)(b) and subject to sub-paragraph (2)) remuneration payable to persons providing local pharmaceutical services]

(2)The Secretary of State shall determine what remuneration paid by [F22Primary Care Trusts] to persons providing pharmaceutical services [F23or local pharmaceutical services] is to be treated for the purposes of this Schedule as remuneration referable to the cost of drugs [F24and the National Assembly for Wales shall make the corresponding determination in relation to Health Authorities and Local Health Boards.]

(3)The Secretary of State may treat all remuneration paid by [F25Primary Care Trusts] to such persons, so far as it is met by an NHS trust F26. . . under section 103(3) below, as remuneration referable to the cost of drugs for those purposes [F27, and the National Assembly for Wales may so treat all remuneration paid by Health Authorities to such persons, so far as it is so met.]

[F28(4)In this paragraph references to local pharmaceutical services include references to local pharmaceutical services provided under pilot schemes established under section 28 of the Health and Social Care Act 2001, in which case that expression has the meaning given by that section.]]

Textual Amendments

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