Pharmaceutical Margin Change
You are currently being asked to make a decision on a proposal that will challenge us all to see the full picture and all the facts.
What started off as a very simple issue – lack of funding – has now grown into this large complicated proposal.
The proposal sent to all New Zealand Pharmacy requires you to consider a major change in Margins and also Section 26 and 29 funding changes.
The first part being the margin is a major change for pharmacy and you need to seriously consider the effects on your business now and in the future. You will have received calculations from your DHB based on the information for the July 2014 to June 2015 year. We suggest you request the same information for the period 1 July 2015 to 31 December 2015 as there has been quantum change within this period and it certainly changes the picture for all.
All that has happened is the pie has been put back into the pot, shaken, not stirred, then layed out and sliced in a manner that supposedly makes it all more equitable. There is no additional funding (actually less is proposed) but there is growth in prescriptions and also high value medicines , all of which add cost to your business.
It should be made clear that the only supporters of this proposed change are the DHB’s.
Pharmacy are being asked to consider a proposal which has not been completed (another LEAP OF FAITH) and in the back ground there is expectation that wholesalers will be changing their terms of trade. (Please CLICK HERE to read ProPharma response)
You MUST make a submission on this issue before 22 April 2016 and not put it off until tomorrow. Any submissions received after deadline may not be considered. Do not rely on anyone else because in this case the numbers of submissions is all that will matter.
Simplistically the first part can be answered by asking yourself one question – Do you accept the margin reduction in this proposal YES or NO.
The second part is Section 26 and 29 Funding and will provided additional funding (2.5% + 7.5%) plus $3 administration fee and $5.30 additional counselling service fee, all with some restrictions.
If you like the idea of extra funding for these service then again you need to ask that same question – Do you accept the additional funding for Section 26 and 29 items – YES or NO.
What is critically important is your submission. Do it today and make sure your voice is heard.