Primary care

The sections of the NHS and Community Care Act 1990 establishing GP fundholding 'are to cease to have effect'.

The health secretary 'may establish bodies to be known as primary care trusts'.


It will be 'the duty of each primary care trust and NHS trust to put and keep in place arrangements for the purpose of monitoring and improving the quality of healthcare'.

There will be 'a body corporate known as the Commission for Health Improvement'.

Control of medicines and curbs on profits

The health secretary can prevent drug companies in a voluntary scheme from 'increasing any price' and recover any increase 'in contravention of that prohibition'.

He can also limit prices and the profits that 'accrue to any manufacturer'.

The health secretary, 'after consultation with the industry body', can 'make any provision he considers necessary or expedient' to 'introduce a statutory scheme' and determine its provision.

Under regulation, any person contravening these provisions 'may be liable to pay a penalty' of£100,000, or£10,000 'every day on which the contravention occurs or continues'. In addition, the fines may be 'increased by an amount not exceeding 50 per cent'.


NHS bodies have a 'duty' to 'co-operate with each other in exercising their functions'.

NHS bodies should also co-operate with local authorities 'to secure and advance the health and welfare of the people of England and Wales'.

Professional self-regulation

Regulations relating to specified professions and specified acts can be changed by 'Her Majesty the Queen by order in council' as long as 'a draft has been laid before and approved by each House of Parliament'.