M16-3-8#611141NationalHospitalPharmaceuticalStrategyFinalVersionPharmaceuticalManagementAgency1February2002M16-3-8#611142TableofContentsPAGEExecutiveSummary51.0Introduction92.0CurrentMarketOverview112.1Currentpurchasingarrangements112.2Rangeofpharmaceuticalspurchased112.3Datacollectionandanalysis112.4Managementofaccesstopharmaceuticals122.5Theprimary/secondarycareinterface132.6Distributionsystems133.0FeaturesandObjectivesofaStrategyforNationwideHospitalPharmaceuticalPurchasing144.0StrategyScope184.1Rangeofproduct-typesincluded184.2Rangeofinitiativestobeapplied184.2.1Pricemanagement184.2.2Assessmentofnewpharmaceuticals194.2.3Promotionofqualityintheuseofmedicines214.2.4Logisticsmanagement225.0ProposedPricingStrategyInitiatives235.1Applicationofreferencepricing235.2InitialRequestforProposals235.3AlternativeCommercialProposals245.4Solesupplyarrangements246.0ImplementationofaNationwidePharmaceuticalPricingPolicy256.1Consultationwithhospitalmanagersandclinicians256.2Communicationofnationalprices266.3Transitionalarrangements276.4Assessmentcriteria287.0MonitoringandMeasuringtheImpactoftheStrategy317.1Monitoringandanalysis317.2Settingofexpendituretargets327.3Theimpactofnationalcontractsoncostsofpharmaceuticals327.4NZpricescomparedwithoverseasprices338.0RolesandResponsibilities348.1PHARMACandPHARMAC’sBoardofDirectors348.2HospitalPharmaceuticalsAdvisoryCommittee(HPAC)348.3DHBNZ348.4DistrictHealthBoard’s348.5HospitalManagers358.6MinistryofHealth358.7HospitalClinicians358.8PTAC/HospitalClinicalsub-committees359.0ProposedTimelinesandMilestones3610.0Summaryofproposedstrategyforspecificissues3711.Otherconsiderations3911.1Long-termimpactonpharmaceuticalmarket3911.2Effectonpharmaceuticalresearch3911.3Effectonopportunitiesforclinicaleducation3911.4Nationaldatasystems40M16-3-8#61114311.5“Orphan“Section29medicines4011.6Potentialmutualbenefitsfortheprimaryandhospitalssectors4012.0Risks,BenefitsandCostsoftheStrategy4112.1Risks4112.2BenefitsandCosts41Glossaryoftermsandabbreviations43Appendix1AuthorisationtoPHARMACfromtheMinisterofHealth45Appendix2Summarisedconsultationresponses47M16-3-8#611144PHARMAC’soverallobjective,asoutlinedinSection47oftheNewZealandPublicHealthandDisabilityAct2000,istosecureforeligiblepeopleinneedofpharmaceuticals,thebesthealthoutcomesthatarereasonablyachievablefrompharmaceuticaltreatmentandfromwithintheamountoffundingprovided.M16-3-8#611145ExecutiveSummaryInresponsetoauthorisationtoperformanewfunctiongivenbytheMinisterofHealthinSeptember2001,PHARMAC,inconjunctionwithrepresentativesoftheDistrictHealthBoards(DHBs),developedastrategyfornationwidepurchasingofhospitalpharmaceuticals(the“Strategy”),andundertookconsultationwithDHBs(CEOs,relevantmanagers,andproviderunits),clinicalgroups,pharmaceuticalsuppliers,andthoseotherinterestedpartieswithwhomPHARMACusuallyconsults.AsummaryofthoseresponsesandPHARMAC’sresponsetothemisattachedasAppendix2.ThissecondandfinalversionoftheStrategywillbepresentedtotheMinisterofHealthinFebruary2002withrecommendationsreflectingtheviewsofPHARMACandDHBCEOs.ChangestothescopeofthedraftStrategy,intermsofthewayitisproposedPHARMACwouldbeinvolvedinassessmentofNewPharmaceuticals,revisionstotheproposedstructureandfunctionofSectionHofthePharmaceuticalSchedule,andpolicydetailspertainingtonationalsoleand/orpreferredsupplierarrangements,shouldbenoted.Itisa...