An independent interim report into pharmaceutical medicines buying agency Pharmac has found issues over the transparency of decision making, and fairness and equity of outcomes, review panel chair consumer advocate Sue Chetwin says.
The review panel was asked to consider how well Pharmac performed against what it was asked to do and whether its performance could be improved. It was also asked to look at timeliness of decision-making, transparency, and equity of outcomes, particularly for Māori, Pacific people, disabled people, and those with rare disorders.
The panel found:
- Pharmac is underperforming in helping to remove inequitable health outcomes;
- its approach appears to disadvantage Māori, Pacific people, disabled people and those with rare disorders;
- Te Tiriti o Waitangi principles are largely unseen in decision-making processes;
- there may be an excessive focus on containing costs - and a concern the cost-saving model may not be the right one to meet future health needs;
- decisionmaking is opaque and is perceived as being slow;
- engagement with consumers and patient advocacy groups needs to be more meaningful;
- convoluted procurement processes put off pharmaceutical companies; and
- there is a perception New Zealand is falling behind other developed countries
Pharmac chief advisor Māori Trevor Simpson told Te Ao Mārama the agency agrees with the findings and is committed to addressing the shortcomings.
As the senior advisor for kaupapa Māori at Pharmac Simpson says his role is an important start towards making Te Tiriti a more visible aspect of Pharmac's operation.
"Koina taku mahi kia whakatikatika o tātou mahi. Kia pūmau te hunga Māori ki te rongoa, ki te pīre rānei.
"Ahakoa kua timata, kāore anō kia tutuki ngā wawata a te Māori i raro i te Tiriti o Waitangi, otirā he mahi kei te hāere."
The panel notes the health and disability reforms provide an opportunity for Pharmac to work in a more integrated way to contribute to better health outcomes for all New Zealanders.
In the next phase the panel will:
- make recommendations following the observations made in this report to support Pharmac to become more effective;
- look at Pharmac's legislative requirements in terms of the new health and disability system and the Pae Oranga Bill (Healthy Futures);
- make recommendations on Pharmac's governance arrangements;
- address outstanding aspects of the terms of reference; and
- look further at funding for people with rare disorders.
The review into the government's drug buying agency is the first in its 25-year history, Health Minister Andrew Little says.
“New Zealanders are among the only people in the world who have access to free medicines - in most countries, families have to spend hundreds or even thousands of dollars a year for even everyday medications,” Andrew Little said.
“Our drug-buying system was set up nearly three decades ago and is the envy of the world but it’s sensible to look at how well it is doing the job we want it to do.”
The final report, which will include recommendations for addressing the identified problems is expected to be delivered to Little at the end of February.