Part 1: Controlling cost of health service medicines Section 1: Special medicinal products – NHS Act 2006
Section 1 of the Act relates to the remuneration for persons providing pharmaceutical services in respect of special medicinal products.
	Special medicinal products are medicines made to order for individual patients.
	Section 1 of the Act inserts additional subsections in section 164 of the NHS Act 2006, which relate to the remuneration for persons providing pharmaceutical services in England.
	New subsection (8A) of section 164 clarifies that the Secretary of State can make regulations regarding remuneration for pharmaceutical services specifically with respect to special medicinal products.
	New subsection (8B) explains that the regulations made by the Secretary of State can relate to how the remuneration should be calculated and that also remuneration does not have to be provided in specified circumstances.
	New subsection (8C) provides examples of how remuneration should be calculated. New subsection (8C) explains that, this may include requiring a dispenser, health service body (as listed in section 9(4) of the NHS Act 2006) or a determining authority (which includes the Secretary of State or where authorised by the Secretary of State, NHS England or any other person) to make inquiries to ensure that remuneration is reasonable or estimating an amount of remuneration that is reasonable. Subsection (8C) would therefore allow for different payment arrangements to be established for special medicinal products compared to other products supplied through pharmaceutical services.
	New subsection (8D) provides examples of the circumstances in which remuneration would not have to be provided. Subsection (8D) explains that this may include circumstances where special medicinal products are provided to persons providing pharmaceutical services by a health service body or under an arrangement between a health service body and other person. This could inform some form of central procurement for provision of special medicinal products, rather than the pharmaceutical provider purchasing the products.
	New subsection (8E) defines "health service body" and "special medicinal product".