Part 2: Controlling costs of other medical supplies Section 7: Control of maximum price of other medical supplies
Section 260 of the NHS Act 2006 enables the Secretary of State to make an order to provide for the control of maximum prices to be charged for any medical supplies other than health service medicines which are required for the purposes of the NHS Act 2006. Schedule 22 used to make further provision in relation to section 260 of the NHS Act 2006.
	The territorial extent of section 260 is extended by virtue of subsection (8) of section 7 so that, as a result of an amendment to section 278(3), it extends to Scotland and Northern Ireland as well as England and Wales. Subsection (3) of section 7 therefore also amends section 260 so that it refers to "medical supplies…required for the purposes of the health service" rather than "for the purposes of this Act". The definition of "health service" here includes the health services in England, Wales, Scotland and Northern Ireland.
	Consequential to these amendments, subsection (1) of section 10 makes amendments to the NHS (Scotland) Act 1978. See commentary on section 10 on consequential amendments.
	Subsection (5) of section 7 amends section 265 of the NHS Act 2006 so that some of the enforcement powers in section 265 which currently apply to health service medicines also apply to other medical supplies. In particular, section 265(1) of the NHS Act 2006 is amended so that penalties can be applied to any person who breaches any provisions made by way of an order under section 260.
	As mentioned in relation to the enforcement provisions, subsection (8) of section 265 of the NHS Act 2006 provides that a prohibition or requirement under sections 261 to 264 may not be relied upon in any proceedings other than proceedings under sections 265 and new subsection (8A) explains that subsection (8) does not apply to any action by the Secretary of State to recover as a debt any amount required to be paid to the Secretary of State by virtue of any of sections 261 to 263 or by virtue of the enforcement provisions in section 265. Subsection (5) of section 7 amends subsection (8) of section 265 so that it also applies to section 260.
	Subsection (6) of section 7 amends section 266(6) (interpretation) of the NHS Act 2006 so that the definitions in this section also apply to section 260. Section 266(6) defines health service, health service medicine, the industry body, manufacture, medicinal product and supplier.
	Subsection (9) of section 7 omits reference to paragraph 1 of Schedule 22. Paragraph 1 provides further detail as to the contents of an order. This paragraph is no longer necessary for the purposes of applying section 260.