Di­rect sup­ply CSO squeeze

Pharmacy Daily - - News -

TEN­DER doc­u­ments for the Com­mu­nity Ser­vice Obli­ga­tion (CSO) is­sued on Fri have con­firmed that con­tro­ver­sial ex­clu­sive di­rect sup­ply ar­range­ments for some med­i­ca­tions will con­tinue - but such dis­trib­u­tors will not be able to ac­cess the CSO Fund­ing Pool.

The for­mal “In­vi­ta­tion to Ap­ply to par­tic­i­pate in the Com­mu­nity Ser­vice Obli­ga­tion Fund­ing Pool and sup­ply PBS Medicines and NDSS Prod­ucts” notes that a CSO Dis­trib­u­tor is not re­quired to stock or sup­ply items that are not avail­able to it be­cause of an Ex­clu­sive Sup­ply Ar­range­ment, but also will not re­ceive CSO pay­ments in re­la­tion to such items.

The CSO Ad­min­is­tra­tion Agency will main­tain a list of the CSO Prod­ucts cur­rently sub­ject to Ex­clu­sive Sup­ply Ar­range­ments, up­dated on a monthly ba­sis.

The doc­u­ments mean that, should a di­rect lo­gis­tics sup­plier such as DHL wish to par­tic­i­pate in the CSO, it will be able to do so but will only re­ceive CSO pay­ments for items avail­able through all whole­salers.

Cur­rent CSO Deeds will re­main in place un­til the In­vi­ta­tion to Ap­ply process is con­cluded, with an in­dica­tive time-line show­ing com­mence­ment of ser­vices un­der the new ar­range­ments in Mar 2019.

The new Deeds be­tween the Com­mon­wealth and the CSO dis­trib­u­tors will end on 30 Jun 2020, with the Gov­ern­ment able to ex­tend un­til 30 Jun 2022.

A fur­ther ex­ten­sion through un­til 30 Jun 2024 is also pos­si­ble.

The cur­rent sched­ule of Ex­clu­sive Sup­ply Ar­range­ments medicines has not been in­cluded in the doc­u­men­ta­tion, with ap­pli­cants re­quired to ap­ply to the Depart­ment for ac­cess to the list, un­der a non-dis­clo­sure agree­ment.

The CSO Fund­ing Pool was es­tab­lished un­der the Fourth Com­mu­nity Phar­macy Agree­ment, with CSO Dis­trib­u­tors also re­quired to pro­vide ser­vices in re­la­tion to Na­tional Di­a­betes Ser­vices Scheme (NDSS) prod­ucts with the in­ten­tion that com­mu­nity phar­ma­cies “will be­come the sole Ac­cess Points for the pur­poses of the NDSS”.

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