![]() ![]() I identify a number of problems with the OFT proposals. It does not, however, incentivise efficient relative prices. I conclude that PPRS has performed well as a procurement bargain between industry and the UK government. I examine the validity of the OFTs criticisms of the existing PPRS, review its proposals and propose an alternative way forward. ![]() The Office of Fair Trading (OFT) Report on the UK Pharmaceutical Price Regulation Scheme (PPRS) recommends that when the current five-year PPRS expires in 2010 it be replaced with 'value-based pricing' which involves pre-launch centralised government price setting based on a cost-per-QALY threshold plus periodic ex post reviews. ![]()
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