If it is desirable for the ratio of expenditure has increased greatly on s100 relative community pharmacies to population to to s85 over the last ten years, as noted in Table 2. increase or decrease in some areas, what in your opinion is the best way to encourage this? Table 2 s100 and s85 Benefits – Distribution Arrangements the National Health Act 1953 Trial Benefits Most medicines on the PBS are available under by section 85 (s85) of the National Health Act 1953 Program (the Act). In addition to this, some medicines are 2005-06 2014-15 distributed under alternative arrangements where Section $208,067,908 $2,106,800,000 these are considered more appropriate, which are 100 provided for under section 100 (s100) of the Act. Section $5,826,451,884 $7,119,087,606 85 Several programs exist for the provision of medicines as pharmaceutical benefits in this way, Most of the expenditure on s100 programs occurs including the Highly Specialised Drugs Program and in public hospitals (Figure 3), a reversal of ten the Efficient Funding of Chemotherapy (EFC) ago when most occurred in community pharmacy. Program, both available in private and public However, this growth could be attributed to the hospitals. introduction of chemotherapy and other highly specialised drugs into s100. Due to the increase in expensive new PBS medicines provided under the s100 program, Figure 3 Proportion of Expenditure on s100 Benefits by Pharmacy Type – However, s85 medicines are predominantly distributed in community pharmacy and this has not changed, as illustrated in Figure 4. Figure 4 Proportion of Expenditure on s85 Benefits by Alternate Supply Setting – Pharmacy Industry medicines varies greatly across pharmacy business models. The business for the pharmacy sector in Australia is both retail and health care. Selected Figure 5 Products and Services Segmentation – data from the April 2016 IBISWorld report on the pharmacy sector in Australia illustrates the proportion of income pharmacy received from In your opinion, should there be a prescriptions as opposed to non-prescription maximum ratio of retail space to business (Figure 5). Note that it is not possible to professional area within pharmacies to distinguish PBS versus private prescriptions from maintain the atmosphere of a health this data. care setting for community pharmacies receiving remuneration for dispensing It has been put to the Panel that the ratio of PBS medicines? revenue from of shop’ and prescription ’front
If it is desirable for the ratio of community pharmacies to population to increase or decrease in some areas, what in your opinion is the best way to encourage this? Distribution Arrangements the National Health Act 1953 Most medicines on the PBS are available under section 85 (s85) of the National Health Act 1953 (the Act). In addition to this, some medicines are distributed under alternative arrangements where these are considered more appropriate, which are provided for under section 100 (s100) of the Act. Several programs exist for the provision of medicines as pharmaceutical benefits in this way, including the Highly Specialised Drugs Program and the Efficient Funding of Chemotherapy (EFC) Program, both available in private and public hospitals. Due to the increase in expensive new PBS medicines provided under the s100 program, expenditure has increased greatly on s100 relative to s85 over the last ten years, as noted in Table 2. Table 2 – s100 and s85 Benefits Benefits by Program 2005-06 2014-15 Section 100 $208,067,908 $2,106,800,000 Section 85 $5,826,451,884 $7,119,087,606 Most of the expenditure on s100 programs occurs in public hospitals (Figure 3), a reversal of ten ago when most occurred in community pharmacy. However, this growth could be attributed to the introduction of chemotherapy and other highly specialised drugs into s100. Figure 3 – Proportion of Expenditure on s100 Benefits by Pharmacy Type However, s85 medicines are predominantly distributed in community pharmacy and this has not changed, as illustrated in Figure 4. Figure 4 – Proportion of Expenditure on s85 Benefits by Alternate Supply Setting Pharmacy Industry The business for the pharmacy sector in Australia is both retail and health care. Selected data from the April 2016 IBISWorld report on the pharmacy sector in Australia illustrates the proportion of income pharmacy received from prescriptions as opposed to non-prescription business (Figure 5). Note that it is not possible to distinguish PBS versus private prescriptions from this data. It has been put to the Panel that the ratio of revenue from ’front of shop’ and prescription medicines varies greatly across pharmacy business models. Figure 5 – Products and Services Segmentation In your opinion, should there be a maximum ratio of retail space to professional area within pharmacies to maintain the atmosphere of a health care setting for community pharmacies receiving remuneration for dispensing PBS medicines? Trial
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