16 December 2024
Rodney Parsons
[FYI request #29369 email]
Ref: HNZ00073577
Tēnā koe Rodney
Thank you for your email of 28 November 2024 regarding pharmacy funding. You asked how
pharmacies are funded by Te Whatu Ora, how we determine whether one pharmacy should be
funded and not another, and what practices Te Whatu Ora undertakes to determine that the
process of funding pharmacies is not subject to commercial conflicts of interest.
Health New Zealand | Te Whatu Ora (Health NZ) contracts with more than 1,000 community
pharmacies throughout New Zealand. Pharmacies must have a contract called an Integrated
Community Pharmacy Services Agreement (ICPSA) to provide funded community pharmacy
services. This ensures that quality services are provided in a consistent manner and in a way that
is fit for all New Zealanders.
The ICPSA outlines the level of funding for each pharmacy service that the pharmacy is requested
to provide. Pharmacies apply to Health NZ for an ICPSA, and the decision to enter into an
agreement is made locally by Health NZ based on local needs, policies and Health NZ obligations
under the Pae Ora (Healthy Futures) Act. The ICPSA also provides Health NZ with the ability to
monitor the delivery of services by the pharmacy provider.
Applicants are advised not to make any commitments prior to the application being approved by
the local Health NZ of ice as approval is not guaranteed. The application follows a rigorous
process. Each contracting organisation is required to have effective policies and procedures for full
disclosure of conflicts of interest in the contracting process and in contract renewals as interests
and conflicts change over time. Applicants must also seek a license from Medicines Control to
operate a pharmacy.
Before 1 July each year, the National Annual Agreement Review (NAAR) provides for a review of
the nationally consistent parts and service schedules of the ICPSA Agreement. The review
considers reasonable cost pressure adjustments, and any other matters identified as important by
Health NZ or pharmacies.
Thank you again for taking the time to write. I hope this information is useful, and I wish you well.
Nāku noa, nā
Astuti Balram
Group Manager
Primary Care – Living Wel , Commissioning Group
TeWhatuOra.govt.nz
P
O Box 793 Wellington 6140
New Zealand
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