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

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PHARMAC has been extraordinarily successful at managing New<br />

Zealand’s pharmaceutical budget by providing an adequate supply <strong>of</strong><br />

quality pharmaceuticals for <strong>the</strong> lowest cost per drug category in <strong>the</strong><br />

OECD.<br />

PHARMAC’s Community <strong>Exceptional</strong> Circumstances is a rational way <strong>of</strong><br />

managing exceptional individual claims, however <strong>the</strong> decision making<br />

criteria have been applied primarily to control PHARMAC budgets.<br />

PHARMAC is held accountable to <strong>the</strong> government through public policy<br />

reporting mechanisms, Parliament, <strong>the</strong> New Zealand Courts and <strong>the</strong><br />

media. <strong>How</strong>ever, PHARMAC has regularly been criticised for not<br />

explaining its decisions to Community <strong>Exceptional</strong> Circumstances<br />

claimants and <strong>the</strong> pharmaceutical industry.<br />

PHARMAC <strong>does</strong> not have a stated philosophical position but operates as<br />

a utilitarian agency aiming to provide <strong>the</strong> highest level <strong>of</strong> benefit for <strong>the</strong><br />

greatest number <strong>of</strong> people. It sometimes <strong>does</strong> this at <strong>the</strong> expense <strong>of</strong><br />

people who have rare conditions or whose needs are considered<br />

exceptional.<br />

Ministers <strong>of</strong> Health King and Ryall have both intervened in PHARMAC’s<br />

decision making process by directing that selected drugs be made<br />

available when PHARMAC had decided against <strong>the</strong> subsidisation <strong>of</strong><br />

<strong>the</strong>se drugs.<br />

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