Pharmacy Services Agreement 2010 Guide for Guild members

confidential – for guild members onlySection One: OverviewAs expected, there has been no change to the dispensingfee. However, there have been a number of positiveadjustments. We believe these changes will increase thenet profit of community pharmacy.The financial crisis turned the spotlight on the largeincreases in health spending over the last decade. Goingforward, it will be increasingly difficult for the governmentto justify a continuation of growth in health expenditurethat is far in excess of New Zealand’s growth rate.The Guild pushed hard on a number of issues and weachieved a number of wins. Overall, the Guild feels thatthis PSA offers a significant improvement on the PSA nowin place: We will do everything in our power as yourrepresentative to ensure that 2010 will be a better yearfor pharmacy.PSA 2010 is interim in nature. It is designed to providesome stability to the sector while larger discussions cantake place regarding a fresh approach to contractingpharmacy services. DHBs, PHARMAC and the Guild haveall committed resources to these ongoing discussions.FUNDING CHANGES■■ Ordinary business hours will be from 8.30am-5pm –Monday to Friday. You will be able to applyreasonable after hours’ charges outside these hours.■■ On new scripts you will now be able to claim thedispensing fee for uncollected medicines. In addition,if you cannot return the medicine to stock you will bereimbursed for the cost of the medicine. This will alsoapply to repeat scripts so long as you can show therepeat was requested.■■ A definition for the “date for dispensing” has beeninserted into the interim PSA. It defines this as thedate of collection by the patient. While DHBs arguethat this has always been implied by the contract, thishas not been the way in which pharmacy practice hasevolved. The Guild is aware that this is problematicand has been working with DHBs, Audit andCompliance and PHARMAC to achieve a workablesolution. We have DHBs’ assurances, both verballyand by way of a side letter, that this definition willnot be enforced until all the practical implicationshave been identified and the necessary enhancementsare made within dispensing software.■■■■■■■■■■■■■■■■The Guild has obtained legal advice that the sideletter is binding on the DHBs and can be relied on byyou. This advice is available for download from themember-only section of our website.If you choose to accept your Agreement, the Guild’sadvice is to sign and date copies of each page of theside letter and attach these to each copy of yourAgreement. This reinforces that your acceptance ofthe PSA was predicated on the assurances given inthe side letter.DHBs will pay the remaining money from the $3million for the Wholesale Uplift Fee.DHBs will inject another $500,000 to address theSpecial Foods issue. The mechanism has yet to bedetermined.DHBs will provide up to $3 million to compensatepharmacies for the additional work arising from brandswitches. The mechanism for these payments topharmacy has yet to be determined.DHBs remain concerned about the large forecastgrowth for total dispensing fee expenditure. However,they have committed not to intervene to try toreduce this forecast growth over the term of this PSA.Dispensing volumes are forecast to grow by 8% in2009/2010 and 4.5% in 2010/2011. These are DHBforecasts; PHARMAC’s growth forecasts are higher.Claiming can occur four times per month for pharmacistsclaiming online – this means you will get the moneyfaster. If you do not claim online, the two claim periodsand payment dates in the current PSA will continue toapply.DHBs will fund pharmacies to move to onlineclaiming. Pharmacies will be paid $500 for initialset up costs and will receive an ongoing monthlypayment of $100.On the downside, NRT will be paid at the standarddispensing fee rate. This includes Quit Cards.PAGE 2