DHBs issue community pharmacy contract variation

District Health Boards are forecasting a funding increase for the community pharmacy sector of around $38.6 million in 2021/22, says DHB lead Pharmacy General Manager Planning and Funding Cathy O’Malley.

In total, DHBs are forecasting a spend of around $579.5 million in 2021/22 on community pharmacies, she says.

The National Annual Agreement Review of the Integrated Community Pharmacy Services Agreement (ICPSA) has resulted in a cost pressure recognition of 2.78 per cent, forecast to be around $15.8 million which will be paid through the Additional Professional Advisory Services (APAS) payment.

This is on top of $22.8 million expected underlying growth in 2021/22.

“The APAS payment recognises the clinical services pharmacists provide to their patients that are not specifically linked to the dispensing of a medicine,” Cathy says. “The equity adjustor applied to the APAS funding recognises the needs of Māori and Pacific people, and Community Service Card and High Use Health Card holders.’’

The $15.8 million cost pressure recognition, to be paid through APAS, will be provided in addition to the $32.8 million currently in the 2020/21 Variation 2 APAS funding pool.

This brings the total amount of funding allocated for sharing across all providers as APAS payments under Variation 3, to $48.6 million.

National funding of $4.1 million will continue to be made available in 2021/22 for DHBs to commission pharmacy services to meet specific local needs. DHBs have also increased fees paid for influenza and MMR immunisations by 2.78 per cent, both backdated to 1 July 2021. This takes the immunisation service fee to $21.23 (excluding GST) per immunisation.

The ICPSA is an evergreen contract - it has no end-date and all current ICPSA contract-holders will continue to be funded whether they choose to sign the new Variation 3 (effective 1 October) or not.

However, providers will need to sign Variation 3 if they wish to access their share of the new $15.8 million APAS funding and increases in influenza and MMR rates.

Providers who choose to remain on the current Variation 2 will be unable to access the new funding.

Details of the ICPSA Variation 3 offer can be found on the TAS website.

The two Independent Reviews of the Services Model and Wage Cost Pressures will be published on the TAS website shortly, and contract-holders will be notified when they become available.