Pharmac to take charge of hospital meds

MEDS CHANGE: Pharmac, which buys and manages community pharmaceuticals, would also look after hospitals.

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Government drug funding agency Pharmac is to take charge of hospital medicines.

Health Minister Tony Ryall said Pharmac, which buys and manages community pharmaceuticals, would also look after hospitals - something District Health Boards did until now.

The change was recommended by the Ministerial Review Group.

"Pharmac has been successful in keeping down the cost of individual community medicines, while at the same time increasing the number of treatments funded and the volume of prescriptions filled," Mr Ryall said.

"There's strong clinical support for bringing hospital medicines into the Pharmac process. DHBs currently spend about $215 million a year on hospital medicines.

"Over time, we expect a national Pharmac procurement approach will achieve value for money as well as ensure national consistency so that patients get equitable access to these treatments wherever they are."

Costs of about $1.5 million for Pharmac and for DHBs to improve their hospital IT systems for the change would come out of existing funding.

Mr Ryall also said Pharmac would have a role in the new Shared Services Agency in the management and procurement of medical devices, starting with insulin pumps.

"DHBs currently manage this spending but the Ministerial Review Group believed that over the longer term, Pharmac was the best option for managing this area."

Pharmac already managed pregnancy test kits, blood glucose testing and management devices, and urine testing devices for blood/protein.

Mr Ryall says eventually Pharmac would become responsible for managing the prioritisation, assessment, standardisation and procurement of all medical devices.

"But the Government will carefully pace any changes to address the caution of many clinicians about Pharmac taking over this role from DHBs."

He said the Government would add other devices for Pharmac management on a case-by-case basis.

Pharmac chief executive Matthew Brougham welcomed the move and promised a careful approach.

"At present we have no set view on how to achieve the aims sought by this change, which is why we will be taking a consultative approach over several years, asking clinicians for their views on how best to proceed, and continuing to consult as we approach each decision.

"We want to ensure we work alongside clinicians who are prescribing medicines as we aim to secure greater consistency in access regardless of where people live, and good deals for DHBs and the taxpayer."

- NZPA