Proposal to Temporarily
Suspend the Issuing of Funding Agreements for New Community Pharmacies -
Consultation Document
Background
Counties
Manukau District Health Board (CMDHB) is intending to develop a policy
for access to funding agreements for provision of community pharmacy
services within its district. The rationale for developing a policy is
as follows:
1. Historically,
any pharmacy that has obtained an operating licence from Medsafe has
been given a funding agreement by CMDHB.
2. Since
July 2009 there has been significant growth in the number of new
pharmacies in Counties Manukau. There is no obvious link between these
new pharmacies and population growth, established need, or service
innovation and there is no evidence that the establishment of new
pharmacies has improved service access or the capacity and capability of
community pharmacy to deliver better quality professional care or
improved health outcomes. There is some evidence that the growth in new
pharmacy businesses is affecting the ongoing sustainability of the
community pharmacy business model, and is associated with unsustainable
growth in dispensing volumes through overuse of close control and a
decline in medicine management services at a time when there is a
national drive to enhance the role of community pharmacists in improving
therapeutic outcomes.
3. CMDHB
envisions a locality approach to health system delivery that better
co-ordinates and integrates hospital, primary healthcare, community and
public health services at the locality level and ultimately places local
communities at the heart of health service planning and delivery.
Targeting our efforts at a locality level will also mean that resources
can be targeted to those areas with the poorest health. Organising
primary care, secondary care, and other health providers around the same
local populations will greatly assist integration of services for
patients. Community pharmacy is a key provider within any integrated
community health service and should be part of a planned approach to
service development.
4. CMDHB
wishes to fund community pharmacy services that align with its strategy
for community health service delivery, that enable system, quality and
safety improvements and positively impact on people in priority areas.
This requires pharmacy service providers that have the capacity and
capability to deliver new and improved services, providers whose
services are coordinated with other primary care providers and providers
who are efficient and sustainable. Efficient and sustainable service
provision requires that the growth in community pharmacy services is
matched to population growth, the service needs of the communities
within Counties Manukau and future sector planning for co-ordinated
service delivery in these communities.
5. CMDHB
proposes to encourage and support high quality and efficient service
provision and obtain best value through development of a funding policy
that will define the criteria for access to a funding agreement within
Counties Manukau. The basis for this agreement will be
a. community
pharmacy services delivered in the right setting at the right time as
part of a multidisciplinary network of community-based services.
b. community
pharmacy services that have the potential to improve health outcomes and
quality of life and to reduce costs to the health system.
Feedback Sought
Development of a pharmacy funding policy and consultation on such a
policy will require intensive work over a three to six month period.
In order to maintain the “status quo” within the sector during this
time it is proposed to suspend the issuing of funding agreements
for new pharmacies. This would preserve the current position prior
to the development and introduction of a funding policy.
CMDHB
is seeking your feedback on its proposal to temporarily suspend the
issuing of new funding agreements while a policy is developed for
granting funding agreements that aligns with the strategic direction
of our DHB.
Please note that a consultative process will be carried out in
relation to the proposed content of the funding policy at a later
date.
Effect of the Proposal
For
three to six months from 1 October 2011, no new Pharmacy Funding
Agreements will be issued to any new pharmacy, even if that pharmacy
has been granted an operating licence by Medsafe.
Exceptions to the Position
It is
proposed that the following exceptions will apply:
-
Any pharmacy that, prior to 1 October, has received written
approval from CMDHB to establish a new pharmacy and has made an
application to Medsafe for a licence on the basis of that
approval but a licence has not yet been issued;
-
Any existing licensed and funded pharmacy that is undergoing a
change of ownership only; or
-
Providers who can establish to the satisfaction of CMDHB that
they have made a substantial and irrevocable commitment to
establishing a new pharmacy prior to 1 October in expectation
that a funding agreement would be forthcoming.
Period
It is
proposed that the temporary suspension would be in place for three to six
months during which CMDHB would develop a pharmacy funding policy
for its district.
How to Provide
Feedback
The
feedback period ended at the end of business day on 31 October 2011.
Your
feedback will inform CMDHB’s final decision as to whether to proceed
with the temporary suspension of issuing new pharmacy funding
agreements and
the conditions that may apply during any suspension period.
Please note that any information or response you provided may be
subject to disclosure under the provisions of the Official
Information Act.

Published: 31-Oct-2011
|
Enquiries:
Programme Manager, Pharmacy Services |