presentation to portfolio committee on health pricing regulations presented by: amos masango, acting...
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PRESENTATION TO PORTFOLIO COMMITTEE ON HEALTH
PRICING REGULATIONS
Presented by:
Amos Masango,Acting Registrar
South African Pharmacy Council
16 November 2004
PRESENTATION TO PORTFOLIO COMMITTEE ON HEALTH
PRICING REGULATIONS
Presented by:
Amos Masango,Acting Registrar
South African Pharmacy Council
16 November 2004
OVERVIEW OF POLICIES AND OVERVIEW OF POLICIES AND LEGISLATIONLEGISLATION
OVERVIEW OF POLICIES AND OVERVIEW OF POLICIES AND LEGISLATIONLEGISLATION
White Paper on the Transformation of the Health Care System (1997)
National Drug Policy (1996) Legislative changes
Pharmacy Act 53 of 1974 amended in 1997 and 2000 Health Professions Act 56 of 1974 amended in 1997 Nursing Bill 2003
White Paper on the Transformation of the Health Care System (1997)
National Drug Policy (1996) Legislative changes
Pharmacy Act 53 of 1974 amended in 1997 and 2000 Health Professions Act 56 of 1974 amended in 1997 Nursing Bill 2003
OVERVIEW OF POLICIES AND OVERVIEW OF POLICIES AND LEGISLATIONLEGISLATION
OVERVIEW OF POLICIES AND OVERVIEW OF POLICIES AND LEGISLATIONLEGISLATION
Medicines and Related Substances Act 101 of 1965 amended by Act 90 of 1997 and Act 59 of 2002
National Health Act 61 of 2003 Medical Schemes Act, 1998 – preferred provider arrangements
Other important national and provincial policies
Norms and standards for pharmaceutical services District hospital service package Comprehensive PHC service package Plan for comprehensive treatment of HIV and AIDS Proposals for Social Health Insurance Hospital Revitalisation Programme
Medicines and Related Substances Act 101 of 1965 amended by Act 90 of 1997 and Act 59 of 2002
National Health Act 61 of 2003 Medical Schemes Act, 1998 – preferred provider arrangements
Other important national and provincial policies
Norms and standards for pharmaceutical services District hospital service package Comprehensive PHC service package Plan for comprehensive treatment of HIV and AIDS Proposals for Social Health Insurance Hospital Revitalisation Programme
NATIONAL DRUG POLICYNATIONAL DRUG POLICY
Specific Objectives
Health objectives
to ensure the availability & accessibility of essential drugs to all citizens
to ensure good dispensing & prescribing practices
Specific Objectives
Health objectives
to ensure the availability & accessibility of essential drugs to all citizens
to ensure good dispensing & prescribing practices
NATIONAL DRUG POLICYNATIONAL DRUG POLICY
Specific Objectives
Economic objectives
to lower the cost of drugs in both the private and public sectors
to promote cost-effective & rational drug use
Specific Objectives
Economic objectives
to lower the cost of drugs in both the private and public sectors
to promote cost-effective & rational drug use
PRICING REGULATIONSPRICING REGULATIONS
PatientPatient
DepartmentOf Health
DepartmentOf Health
South African Pharmacy
Council
South African Pharmacy
Council
PharmacistPharmacist
MedicineMedicine
Rules - Section 35APharmacy Act,
1974
Pricing RegulationsMedicine Act,
1965
PRICING REGULATIONSPRICING REGULATIONS
Transparency
Affordability
Accessibility
Transparency
Affordability
Accessibility
To give guidance to the profession To give guidance to the public To give guidance to medical schemes
as to which services a pharmacist may levy for
Uniformity
To give guidance to the profession To give guidance to the public To give guidance to medical schemes
as to which services a pharmacist may levy for
Uniformity
INTENTION OF SAPC WITH REGARD TO PROFESSIONAL TARIFFS
INTENTION OF SAPC WITH REGARD TO PROFESSIONAL TARIFFS
PRICING OF MEDICINE PRIOR TO MAY 2004
PRICING OF MEDICINE PRIOR TO MAY 2004
Cost of product plus 50% markup 50% included profit plus services Pharmacists were buying at discount or bonus
prices 50% plus bonuses included the so-called free
service
Cost of product plus 50% markup 50% included profit plus services Pharmacists were buying at discount or bonus
prices 50% plus bonuses included the so-called free
service
POST MAY 2004POST MAY 2004
Pricing regulations come into effect Pharmacists were given three months to
implement the dispensing fee, i.e. 26/26 or 16/16 Medicines prices went down No discount or bonus on the product for
pharmacist or patient Pharmacists were charging SEP plus 36% on 2 August 2004 after the Court ruling the
Pricing regulations come into effect for community sector
Pricing regulations come into effect Pharmacists were given three months to
implement the dispensing fee, i.e. 26/26 or 16/16 Medicines prices went down No discount or bonus on the product for
pharmacist or patient Pharmacists were charging SEP plus 36% on 2 August 2004 after the Court ruling the
Pricing regulations come into effect for community sector
POST AUGUST 2004POST AUGUST 2004 SEP plus 26/26 or 16/16 dispensing fees Admin fees come into effect as a result of implementation of the
dispensing fees The admin fees seem to be arbitrary and excessive in some
instances Outcry from both the profession and the public Patients feel they pay more than they used to pay before pricing
regulations Pharmacists feel there is no viability for the community sector PSSA and other groups apply for leave to appeal to the High
Court Judgement on the matter reserved
SEP plus 26/26 or 16/16 dispensing fees Admin fees come into effect as a result of implementation of the
dispensing fees The admin fees seem to be arbitrary and excessive in some
instances Outcry from both the profession and the public Patients feel they pay more than they used to pay before pricing
regulations Pharmacists feel there is no viability for the community sector PSSA and other groups apply for leave to appeal to the High
Court Judgement on the matter reserved
15 OCTOBER 200415 OCTOBER 2004
On 13 October 2004 Council resolves that the Rules be published as matter extreme urgency
Council was responding to its mandate to protect the public and giving guidance to the profession
Council’s intention was to apply uniformity so that the public may know exactly what they are paying for when entering a community pharmacy
Council embarked on a process of consulting with all stakeholders involved in the Court case with an aim to mediate on the dispensing fees
On 13 October 2004 Council resolves that the Rules be published as matter extreme urgency
Council was responding to its mandate to protect the public and giving guidance to the profession
Council’s intention was to apply uniformity so that the public may know exactly what they are paying for when entering a community pharmacy
Council embarked on a process of consulting with all stakeholders involved in the Court case with an aim to mediate on the dispensing fees
25 OCTOBER 200425 OCTOBER 2004
Council resolves that the rules be withdrawn with immediate effect as a result of an implementation problem
Task Team is elected to review Rules and tie up loose ends The office of the Registrar is receiving complaints on the charging
of admin fees The profession is advised to itemise all fees that are levied to
patients and fully explain to patients what the fees are for On 8 November 2004 the first meeting between the PSSA and
New Clicks group takes place The dates for the meeting with other stakeholders are set
Council resolves that the rules be withdrawn with immediate effect as a result of an implementation problem
Task Team is elected to review Rules and tie up loose ends The office of the Registrar is receiving complaints on the charging
of admin fees The profession is advised to itemise all fees that are levied to
patients and fully explain to patients what the fees are for On 8 November 2004 the first meeting between the PSSA and
New Clicks group takes place The dates for the meeting with other stakeholders are set
WHO IS BENEFITING FROM THE IMPLEMENTATION
OF THE PRICING REGULATIONS? WHO IS BENEFITING FROM THE IMPLEMENTATION
OF THE PRICING REGULATIONS?
Medical Schemes? Manufacturers? Patients? Distributors/Wholesalers? Pharmacists? Doctors?
Medical Schemes? Manufacturers? Patients? Distributors/Wholesalers? Pharmacists? Doctors?
WAY FORWARDWAY FORWARD
SAPC to re-publish the Rules
SAPC to mediate on the dispute regarding the dispensing fee
SAPC to re-publish the Rules
SAPC to mediate on the dispute regarding the dispensing fee