Pharmaceutical pricing in New Zealand

Rajan Ragupathy, Kate Kilpatrick, Zaheer Ud Din Babar

Research output: Chapter in Book/Report/Conference proceedingChapter

6 Citations (Scopus)

Abstract

All New Zealand residents are covered by a national public health system, and approximately 80 % of all health expenditure is publically financed. A well-regulated system of privately owned pharmacies supplies outpatient pharmaceuticals, while inpatient pharmaceuticals are provided in secondary care facilities. New Zealand does not use pharmaceutical price controls, leaving prices to be determined by negotiation. However, the public health system has a very effective monopsony purchaser, the Pharmaceutical Management Agency of New Zealand (PHARMAC). PHARMAC negotiates the prices of inpatient, outpatient and cancer pharmaceuticals, vaccines and medical devices, and manages a capped national budget for outpatient and cancer pharmaceuticals. PHARMAC also sets (separate) national positive formularies of publically funded outpatient and inpatient pharmaceuticals, and administers access schemes for pharmaceuticals that are not on these formularies. PHARMAC uses a variety of mechanisms to obtain favourable prices, including competitive tendering, sole supply contracts, reference pricing, bundling deals, risk sharing agreements and promoting use of generics. Health technology assessment is used extensively in decision making and price negotiations. As a result, New Zealanders have universal and nationally consistent pharmaceutical coverage, with lower patient pharmaceutical co-payments than many comparable countries.

LanguageEnglish
Title of host publicationPharmaceutical Prices in the 21st Century
EditorsZaheer-Ud-Din Babar
PublisherSpringer International Publishing AG
Pages189-207
Number of pages19
ISBN (Electronic)9783319121697
ISBN (Print)9783319121680
DOIs
Publication statusPublished - 1 Dec 2014
Externally publishedYes

Fingerprint

Pharmaceutical pricing
Pharmaceuticals
New Zealand
Outpatient
Inpatients
Public health
Cancer
Bundling
Monopsony
Health expenditures
Supply contracts
Price controls
Vaccine
Copayments
Health technology assessment
Reference pricing
Risk sharing
Decision making
Medical devices
Competitive tendering

Cite this

Ragupathy, R., Kilpatrick, K., & Babar, Z. U. D. (2014). Pharmaceutical pricing in New Zealand. In Z-U-D. Babar (Ed.), Pharmaceutical Prices in the 21st Century (pp. 189-207). Springer International Publishing AG. https://doi.org/10.1007/978-3-319-12169-7_11
Ragupathy, Rajan ; Kilpatrick, Kate ; Babar, Zaheer Ud Din. / Pharmaceutical pricing in New Zealand. Pharmaceutical Prices in the 21st Century. editor / Zaheer-Ud-Din Babar. Springer International Publishing AG, 2014. pp. 189-207
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Ragupathy, R, Kilpatrick, K & Babar, ZUD 2014, Pharmaceutical pricing in New Zealand. in Z-U-D Babar (ed.), Pharmaceutical Prices in the 21st Century. Springer International Publishing AG, pp. 189-207. https://doi.org/10.1007/978-3-319-12169-7_11

Pharmaceutical pricing in New Zealand. / Ragupathy, Rajan; Kilpatrick, Kate; Babar, Zaheer Ud Din.

Pharmaceutical Prices in the 21st Century. ed. / Zaheer-Ud-Din Babar. Springer International Publishing AG, 2014. p. 189-207.

Research output: Chapter in Book/Report/Conference proceedingChapter

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Ragupathy R, Kilpatrick K, Babar ZUD. Pharmaceutical pricing in New Zealand. In Babar Z-U-D, editor, Pharmaceutical Prices in the 21st Century. Springer International Publishing AG. 2014. p. 189-207 https://doi.org/10.1007/978-3-319-12169-7_11