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| PHARMAC | |
|---|---|
| Name | PHARMAC |
| Formation | 1993 |
| Type | Crown agent |
| Headquarters | Wellington |
| Jurisdiction | New Zealand |
| Leader title | Chief Executive |
| Website | (official site) |
PHARMAC
PHARMAC is the publicly funded agency responsible for managing the subsidy of medicines and related products in New Zealand. It operates within a framework of statutory mandates, interacting with institutions such as the New Zealand Parliament, Ministry of Health (New Zealand), District Health Boards (New Zealand), Waitematā District Health Board, and stakeholder organisations including the New Zealand Medical Association, Pharmacy Guild of New Zealand, Consumer New Zealand, and global pharmaceutical companies like Pfizer, Novartis, and GlaxoSmithKline. PHARMAC’s decisions affect prescribers, pharmacists, patients, and suppliers across regions such as Auckland, Wellington, and Christchurch while engaging with international purchasers and regulators including World Health Organization, European Medicines Agency, and U.S. Food and Drug Administration.
PHARMAC was established in 1993 following reforms influenced by policy reviews from the Treasury (New Zealand), the Health Funding Authority (New Zealand), and recommendations associated with the 1990s New Zealand health reforms. Early governance drew on comparisons with agencies such as NHS England’s commissioning bodies and procurement practices in Australia, notably Pharmaceutical Benefits Scheme. Over time PHARMAC developed listing schedules analogous to formularies like those of Veterans Health Administration and engaged in international reference pricing debates involving entities such as Organisation for Economic Co-operation and Development. Key policy shifts occurred under successive governments including administrations led by Jim Bolger, Helen Clark, and John Key, shaping statutory changes and procurement strategy.
PHARMAC’s statutory remit includes evaluating applications for subsidy, negotiating prices with manufacturers, and managing the Pharmaceutical Schedule used by prescribers and pharmacists. It liaises with clinical advisory groups such as the Royal Australasian College of Physicians, Royal College of General Practitioners, and specialist societies including the New Zealand Cancer Society and Heart Foundation (New Zealand). PHARMAC also runs programmes for medical devices and vaccines, coordinating with organisations including Medsafe (New Zealand), Immunisation Advisory Centre, and international suppliers like GSK. Its operational counterparts include procurement agencies in countries like Canada, United Kingdom, and Sweden.
Funding for PHARMAC’s subsidisation programmes is allocated through budgeting processes in the New Zealand Parliament and negotiated within fiscal frameworks of the Treasury (New Zealand) and Minister of Health (New Zealand). Prioritisation involves competing demands from clinical areas such as oncology, cardiology, and mental health represented by groups like Cancer Society of New Zealand, Heart Foundation, and Mental Health Foundation of New Zealand. PHARMAC manages capped budgets and contingency funds while employing mechanisms comparable to those used by National Institute for Health and Care Excellence and provincial procurement in Australia. Supplier negotiations can include managed entry agreements with multinational firms such as AstraZeneca, Roche, and Merck & Co..
PHARMAC uses explicit decision frameworks incorporating clinical effectiveness, cost-effectiveness, and health needs assessments. Committees and advisory panels include clinical experts from institutions like Auckland District Health Board and University of Auckland, consumer representatives from organisations such as Health Consumers' Council (Auckland), and ethical input akin to models from Nuffield Council on Bioethics. Assessment criteria mirror methods used by NICE and health technology assessment bodies in Canada and Australia, including quality-adjusted life years, incremental cost-effectiveness ratios, and equity considerations addressing Māori and Pasifika health priorities represented by Te Puni Kōkiri and Health Promotion Agency (New Zealand).
PHARMAC’s policies influence prescribing patterns for conditions treated by drugs from firms such as Sanofi, Bayer, and Eli Lilly and Company. Changes to the Pharmaceutical Schedule impact access for patients managed by providers in settings like primary care clinics and specialty services at hospitals including Auckland City Hospital and Christchurch Hospital. Outcomes reported by researchers at institutions such as University of Otago and University of Canterbury indicate effects on medicine affordability, utilisation, and health outcomes, and comparisons have been drawn with access models in United Kingdom, Australia, and Canada.
PHARMAC has faced criticism from patient advocacy groups such as Breast Cancer Foundation New Zealand and from clinicians citing delays for drugs used in rare diseases and oncology. High-profile disputes have involved manufacturers like Novartis and Roche over access to costly biologics, and public debates have engaged politicians from parties including the New Zealand Labour Party and the New Zealand National Party. Critics reference cases discussed in media outlets and inquiries involving actors ranging from consumer groups to specialist clinicians from organisations like New Zealand Association of Psychotherapists.
PHARMAC is governed as a Crown agent with oversight mechanisms involving the Minister of Health (New Zealand), reporting obligations to the New Zealand Parliament, and audit functions from the Office of the Auditor-General (New Zealand). Stakeholder engagement includes consultation with tribal organisations such as Ngāi Tahu, patient advocacy bodies including Health and Disability Commissioner (New Zealand), and professional bodies like the Royal New Zealand College of General Practitioners. Its governance arrangements are periodically reviewed in policy analyses by think tanks and agencies such as The Treasury (New Zealand), Health Research Council of New Zealand, and independent review panels.
Category:Health care in New Zealand Category:Pharmaceutical procurement