Pharmacy Daily | CSO distributors named

THE Health Department has announced the appointment of six Community Service Obligation (CSO) distributors, following a tender process (PD 03 Dec 2018) which impacted the controversial direct supply arrangements for some medicines.

The Invitation to Apply has seen Australian Pharmaceutical Industries, Sigma Healthcare, Symbion and Clifford Hallam Healthcare (CH2) all appointed as national CSO distributors, alongside state distributors National Pharmacies (Friendly Society Medical Association) in SA and Barrett Distributors in Vic.

The new arrangements formally commence today, 01 Apr 2019, and will run until 30 Jun 2020 with the option of an initial extension of two years, and provision for two more one-year extensions which would take the CSO distributor timeline out to 30 Jun 2024.

Wholesaler peak body, the National Pharmaceutical Services Association, has welcomed the announcement, which includes its four member organisations, Sigma, Symbion, API and National Pharmacies.

NPSA Chairman and Sigma CEO Mark Hooper said "the CSO is a world-class example of public health policy that supports the national interest.

"Government, pharmacists and patients benefit despite the unique logistical and cost challenges of medicine distribution in a country the size of Australia," he said.

Hooper said the CSO ensures that all Australians, regardless of location, can rely on timely delivery of PBS medicines to and through their community pharmacy.

"The NPSA remains committed to working with the Government to uphold the strict standards of the CSO...the NPSA believes in a CSO that is open and fair for all who meet its standards," he said.

Hooper also said the NPSA looked forward to continued engagement with the Department of Health over the duration of the new contracts.

"It is our hope that we can work toward extending the Deeds for as long as possible," he said.