From Stage 2 onwards, payments <strong>to</strong> pharmacies mayalso include a Quality Incentive Payment (3.1 (i)). Thedetails <strong>of</strong> Quality Incentive Payments have yet <strong>to</strong> bedecided but <strong>the</strong>y will be dealt with as a variation,according <strong>to</strong> clauses L2 <strong>to</strong> L6 (3.1 (i)).Stage 1 - During this stage pharmacies are paid <strong>the</strong>Transition Payment and make claims for providingServices. The Handling Fee is set at $1 and Multipliersare:• Core Services 1.00• Extemp Services 7.95• LTC Services 1.00• ARRC Services 5.30• Class B CDs (including Methadone)Services 6.89• NPPA A Services 5.30• NPPA B Services 7.95The following additional Services if listed in ClauseC2 <strong>of</strong> Schedule C1:• Aseptic 26.50• Sterile 26.50• Special Foods 5.30• Clozapine 10.60The formula (3.1 (c) (i)) for calculating <strong>the</strong> payment(R) on a claim for dispensing an item under <strong>the</strong> CoreService is:• [Schedule subsidy for <strong>the</strong> PharmaceuticalPlus <strong>the</strong> s<strong>to</strong>ck holding cost margin (4% <strong>to</strong>$150, 5% above $150)]• Plus [Handling fee multiplied by <strong>the</strong>Multiplier]• Plus [GST]• Minus [<strong>the</strong> Co-payment.]This formula remains consistent throughout <strong>the</strong> term<strong>of</strong> <strong>the</strong> <strong>PSA</strong> (2.3 (a)). Similar formulae are found forPSO, BSO, LTC, Specific, Extemp, NPPA A and NPPAB Services (3.1 (c) (ii) <strong>to</strong> (g)). These formulae alsoremain consistent throughout <strong>the</strong> term <strong>of</strong> <strong>the</strong> <strong>PSA</strong>.Stage 2 – At this point Transition Payments (3.2(f)) will decrease and Fees will begin <strong>to</strong> be paid<strong>to</strong> pharmacies for Core Services (3.2 (a) (ii)) andLTC Services (3.2 (b) (ii)). These Fees are subject <strong>to</strong>amendment under <strong>the</strong> TCM so <strong>the</strong>ir exact levels arecurrently unknown (3.2 (g)). Qualifying pharmaciesmay receive a Quality Incentive Payment (3.2 (i)). Theformulae for calculating payments for PSOs, BSOs,Core, LTC, Specific, Extemp, NPPA A and NPPA BServices remain <strong>the</strong> same as in Stage 1 (3.2 (a) <strong>to</strong> (e)but <strong>the</strong> Service Fee (3.2 (g)) and/or <strong>the</strong> Multiplier maybe varied (3.2 (h)).Stage 3 – The transition process continues on <strong>the</strong>same track. Pharmacies will receive a fur<strong>the</strong>r reducedTransition Payment (3.3 (f)) with increased Fees forCore Services (3.3 (a) (ii)) and LTC Services (3.3 (b) (ii)).Again, <strong>the</strong>se fees are subject <strong>to</strong> amendment under<strong>the</strong> TCM so <strong>the</strong>ir exact levels are currently unknown(3.3 (g)) and again, qualifying pharmacies may receiveQuality Incentive Payments (3.3 (i)). The formulaefor calculating payments for PSOs, BSOs, Core, LTC,Specific, Extemp, NPPA A and NPPA B Servicesremain <strong>the</strong> same as in Stage 1 and 2 (3.3 (a) <strong>to</strong> (e) but<strong>the</strong> Service fee (3.3 (g)) and/or <strong>the</strong> Multiplier may bevaried (3.3 (h)).Post Transition – The payment terms for this periodare found in clauses 2.2 <strong>to</strong> 2.6 and differ from Stage3 only in that <strong>the</strong>re is no provision for TransitionPayments.pharmacy guild <strong>of</strong> new zealandPage 16
<strong>Guide</strong> <strong>to</strong> <strong>understanding</strong> <strong>the</strong> PsaA guide <strong>to</strong> <strong>the</strong> acronyms and abbreviationsused in this document:ARRCAseptic ServicesBSOCCPClass B CDClozapine ServicesCore ServicesCPAMCPSGGCPSOGDHBEnvelopeExtempFeeLTCLTC Eligibility FormLTC ServicesLTC Pro<strong>to</strong>colMethadone ServicesMultiplierNPPAPHARMACPSO<strong>PSA</strong> or AgreementScheduleSpecific ServicesSterile ServicesTCMAge Related Residential CareAseptic <strong>Pharmacy</strong> ServicesBulk Supply OrderContribution <strong>to</strong> Cost PressureClass B Controlled Drug<strong>Pharmacy</strong> Clozapine ServicesCore <strong>Pharmacy</strong> ServicesCommunity <strong>Pharmacy</strong> Anti-coagulation ManagementCommunity <strong>Pharmacy</strong> Services Governance GroupCommunity <strong>Pharmacy</strong> Services Operational GroupDistrict Health BoardAnnual Funding EnvelopeExtemporaneously CompoundedService FeeLong Term ConditionsLTC Service Eligibility Assessment FormLTC <strong>Pharmacy</strong> ServicesLong Term Conditions (LTC) <strong>Pharmacy</strong> Services Pro<strong>to</strong>col<strong>Pharmacy</strong> Methadone Services for Opioid DependenceHandling Fee MultiplierNamed Patient Pharmaceutical AssessmentPharmaceutical Management AgencyPractitioner Supply Order2012 Community <strong>Pharmacy</strong> Services Agreement<strong>New</strong> <strong>Zealand</strong> Pharmaceutical ScheduleSpecific <strong>Pharmacy</strong> ServicesSterile Manufacturing ServicesTransitional Change Mechanism.Page 17