Pharmac: Govt accepts improvement needed to drug-buying agency

June 1, 2022
Prescription medicine on a pharmacy shelf.

The Government says it welcomes the independent report into the country's drug-buying agency Pharmac and accepts findings that there needs to be improvements on equitable outcomes for Māori and Pacific peoples.

Health Minister Andrew Little said that Pharmac will have a "much greater focus on improving the health of Māori, Pacific peoples, disabled people and other groups who do not yet share equitably in the benefits Pharmac provides".

"This will mean stronger relationships with Māori to honour te tiriti o Waitangi. It will mean Pharmac is more inclusive of people with health needs and explains its work more openly for the public."

Andrew Little said Pharmac will have a "much greater focus on improving the health of Māori, Pacific peoples, disabled people and other groups." (Source: 1News)

It comes after the scathing interim report into the national drug-buying agency. It found multiple failings - including that Pharmac “closely guards its information”, leaving the public poorly informed about the decisions it makes. The report found there was “considerable” scope to broaden the involvement of consumers in the decision-making process.

The review panel was tasked at looking at whether Pharmac is achieving its objectives, including how quickly it makes decisions and the transparency of that process. It also looked into equity at the organisation, including access to medicines for Māori, Pacific and disabled people.

It's been found that more needs to be done to improve outcomes for Māori and Pasifika. (Source: 1News)

The panel's final report made 33 recommendations - that included making explicit the expectation to get the best health and equity outcomes, there needs to be collaboration across the Health Ministry, Health NZ and the Māori Health Authority. It also recommended Pharmac improve transparency and accessibility and transfer responsible use of medicines to Health NZ and Māori Health Authority.

"The government agrees in principle with most of them," Little said.

"There is a small number of recommendations where the Government takes a different view, for example where the health reforms will address the underlying issues now or in the future."

Pharmac refused 1News’ request for an interview. Instead communications staff offered a two-line statement in the name of chief executive Sarah Fitt.

“Pharmac welcomes the review final report and the Government’s response. There are important improvements for us to make and we look forward to working with other health agencies on implementing the recommendations supported by the Government.”

The Government did not agree that Pharmac’s responsibility for pharmaceutical devices should be transferred to Health NZ while it is being established.

"There is much to be done by the new entities without adding to that work, and a number of benefits to the public in Pharmac continuing to hold this responsibility."

The Government also agreed "that cancer pharmaceuticals should, by and large, be considered in the same ways as are other pharmaceuticals and that equitable access should be promoted".

Little said that the Pae Ora (Healthy Futures) Bill would bring in much of the legislative recommendations "and sets expectations for health entities, including Pharmac, to make many of the directional changes sought by the Panel".

National's Shane Reti called the report "a damning reflection" of what he described as the Government's mismanagement of health.

"The Pharmac report has revealed some significant deficiencies which the Government has failed to address," he said.

"The report also describes a lack of clear targets, insufficient reporting and an absence of an up to date principles based medicines strategy, which will disrupt Pharmac’s integration into the wider health system – if and when the Government’s restructure is actually completed."

SHARE ME

More Stories