NZ pharmacy income up
October 11, 2013
The community pharmacy sector
is growing in New Zealand, with
figures released this morning
showing an increase both in
pharmacy numbers as well as in
their overall income.
In New Zealand there’s a new
Community Pharmacy Services
Agreement which sets out
a “patient centred” funding
model rather than the previous
reimbursement based on
dispensing of prescriptions.
Launched last year, the new
arrangements are being phased
in over a three year period,
with progress monitored by the
Community Pharmacy Services
Governance Group (CPSGG).
Provisional analysis for Jul-Apr
shows that there was a 1.9%
increase in service fee income
this year, as well as a 1% growth
in pharmacy numbers which rose
from 947 to 957 over the twelve
months to 01 Jul 2013.
“We want to understand the
impact the implementation of the
new service and funding model,
lower drug costs and factors related
to market forces is having at both a
national and individual level,” said
Kevin Snee, Chair of the CPSGG.
He said that today’s figures
showed that service fee income
growth is in line with other areas
of the health sector, “and that the
current funding structure is not
discouraging pharmacists from
entering the pharmacy market”.
The Community Pharmacy
Services Agreement introduced a
market share model with a fixed
funding pool, which amounted to
NZ$370.5 million in 2012/13.
This year the pool increases to
$373.8m, with adjustments for cost
pressures.
The pool is guaranteed to be paid
out to pharmacies each year, with
the final adjustment being paid
next month once all 2012/13 claims
have been submitted.
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