Inquiry to study Pharmac model
‘‘We have heard people’s concerns about the [Pharmac] model, and we believe there is scope for improving it.’’ Prime Minister Jacinda Ardern
The Government has announced its long-awaited inquiry into drugbuying agency Pharmac.
The review will look at how Pharmac performs against its current objectives and whether it could do a better job for New Zealanders if the Government set new objectives.
Two things that are notably off the table are looking into specific commercial decisions that are currently in front of Pharmac, and whether decisions that Pharmac had made in the past were appropriate.
The inquiry will also look at whether Pharmac is making decisions on new medicines quickly enough and whether those decisions are transparent.
It will also look at whether the decisions made by Pharmac are equitable, particularly for Ma¯ori and Pacific people.
Prime Minister Jacinda Ardern said she was broadly happy with the way Pharmac was working.
‘‘Broadly, the Pharmac model works well, and gives New Zealanders access to the medicines and products they need to live healthy lives, but we have heard people’s concerns about the model, and we believe there is scope for improving it,’’ Ardern said.
‘‘We have a good system, our challenge is to make it better.’’
Pharmac has jealously guarded its independence. It’s argued that the methods it uses have pushed down pharmaceutical prices in New Zealand to become among the lowest in the world.
But those same methods have opened Pharmac up to charges of a lack of transparency – as patients have wondered why some medicines get funding and others do not. An interim report will be delivered to Health Minister Andrew Little by August, and a final report is due by the end of the year.
Little said it was vital the country continued to trust Pharmac.
‘‘It is vitally important that the public have trust and confidence in the Pharmac model, including the way it considers new medicines, identifies and addresses safety concerns and the way it makes its decisions,’’ Little said.
‘‘In scope will be how Pharmac uses its budget to achieve the best possible outcomes. Out of scope will be the fixed nature of the
budget and the total amount allocated to pharmaceuticals as these quite rightly are for the Government of the day to determine.’’
The panel reviewing Pharmac will be chaired by consumer advocate Sue Chetwin.
Its members will be corporate governance and public law consultant Frank McLaughlin, Heather Simpson, who reviewed the wider health sector last year, pharmacist prescriber Leanne Te Karu, Otago University’s Department of Preventative and Social Medicine Associate Professor Sue Crengle and disability advocate Dr Tristram Ingham.