Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Pharmac to be drug-buying agent for DHBs

28 September 2001 Media Statement

Pharmac to be drug-buying agent for DHBs

Health Minister Annette King says District Health Boards could potentially save millions of dollars a year, now that Pharmac has been authorised to purchase drugs for their hospitals.

Announcing the move today, Mrs King said individual DHBs would in the future no longer have to negotiate directly with pharmaceutical companies for all the drugs used in their hospitals.

"Currently, because hospitals negotiate with pharmaceutical companies in isolation, it is likely there are variations in the prices they are paying for pharmaceuticals," she said. "Where Pharmac acts as the sole central negotiating agent there will be nationwide consistency and an opportunity for savings to be made."

Pharmac, the Ministry of Health and DHBs are still working out the details of Pharmac's new role, and a Hospital Pharmaceuticals Advisory Committee, comprising hospital purchasing and pharmacy managers, has been set up to advise in the development of its purchasing strategies.

Mrs King said because DHBs might have to wait until their existing contracts with pharmaceutical companies expired, the savings were expected to start in 2002 and increase in later years.

Pharmac already manages DHBs' negotiations for pharmaceuticals used in the community.

"I see real advantages in drawing on Pharmac's pharmaceutical negotiation skills and established systems and networks in order to assist DHBs to make savings when purchasing hospital pharmaceuticals. Pharmac will be able to keep the prices down meaning hospitals' available funding can be spent on other service areas."

Pharmac's purchasing power is expected to lead to national annual savings of around $7-$10 million from an estimated national bill of $100-$140 million. Where Pharmac cannot make savings, hospitals may end up retaining responsibility for purchasing some pharmaceuticals.

Pharmac is expected to gradually take on its new role from December this year. It will take some years before Pharmac has completed all the relevant tenders.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news