How does the operation of PHARMAC's 'Community Exceptional ...

cumbersome and recommended that PHARMAC speed up its decision making
processes. The NZAF was also concerned that with the establishment of 21
DHBs (replacing one Health Funding Authority), they would have to deal with
many more public agencies to negotiate services and contracts. This would
present the NZAF with high and prohibitive transaction costs (PB/ 91 NZ AIDS
Foundation, 2000).
They also complained that the cost-utility analysis which has been applied to
HIV/AIDS treatment drugs, only takes into account the cost and availability of
alternative treatments. This economic analysis system used by PHARMAC did
not take into account the capacity of the person or the wider costs and benefits
to society of having AIDS patients treated with drugs which were effective and
available in other countries. The NZAF submitted that PHARMAC had been
unwilling to listen to expert advice on the effectiveness of AIDS medication.
They stated that PHARMAC considered it a virtue that decisions were made by
generalists, despite the abundance of specialist advice being available to it, and
PHARMAC seemed almost completely unwilling to seek such advice or accept
external expert advice if offered (PB/ 91 NZ AIDS Foundation, 2000).
NZAF made three substantive suggestions to change the Bill. Firstly, they
suggested that PHARMAC should give new consideration to decision making in
respect of HIV antiretroviral treatments. Secondly, PHARMAC should
incorporate substantially more expert opinion in decision making on HIV
antiretroviral treatments. Finally, they suggested that PHARMAC should ensure
all costs and benefits to society and to the individual are taken into account
when a cost-utility analysis is carried out to decide on applications to the
pharmaceutical schedule (PB/ 91 NZ AIDS Foundation, 2000).
Submission on Complementary Medicines
The New Zealand Charter of Health Practitioners Inc. (NZCHP) gave a
submission on behalf of its members who practiced complementary health care.
They urged the government in their submission to introduce complementary
health services into the public health service and fund complementary health
products through PHARMAC. Specifically, the government should facilitate
access to holistic complementary health care and wellness services. They
urged the government to provide payments for complementary disability support
127