2011-2012

Outcome 2 Access to Pharmaceutical Services

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Access to cost-effective medicines, including through the Pharmaceutical Benefits Scheme and related subsidies, and assistance for medication management through industry partnerships.

Table 2.2.1: Resource summary - Outcome 2

	Budget 2011-12 $'000	Revised 2011-12 $'000	Additional estimates $'000	Reduced estimates $'000
Program 2.1: Community Pharmacy & Pharmaceutical Awareness
Administered expenses
Ordinary annual services (Bill 1/3)	311,173	311,173	-	-
Departmental expenses
Departmental appropriation1	10,685	10,685	-	-
Expenses not requiring appropriation in the budget year2	636	636	-	-
Total for Program 2.1	322,494	322,494	-	-
Program 2.2: Pharmaceuticals and Pharmaceutical Services
Administered expenses
Ordinary annual services (Bill 1/3)	186,235	186,235	-	-
Special appropriations
National Health Act 1953 - Pharmaceutical Benefits	9,646,858	9,416,580	-	230,278
Departmental expenses
Departmental appropriation1	32,200	32,200	-	-
Expenses not requiring appropriation in the budget year2	1,917	1,917	-	-
Total for Program 2.2	9,867,210	9,636,932	-	230,278
Program 2.3: Targeted Assistance - Pharmaceuticals
Administered expenses
Ordinary annual services (Bill 1/3)	159,428	154,883	-	4,545
Departmental expenses
Departmental appropriation1	1,602	1,602	-	-
Expenses not requiring appropriation in the budget year2	95	95	-	-
Total for Program 2.3	161,125	156,580	-	4,545
Program 2.4: Targeted Assistance - Aids and Appliances
Administered expenses
Ordinary annual services (Bill 1/3)	802	802	-	-
Special Appropriations
National Health Act 1953 - Aids and Appliances	266,319	265,761	-	558
Departmental expenses
Departmental appropriation1	1,691	1,691	-	-
Expenses not requiring appropriation in the budget year2	101	101	-	-
Total for Program 2.4	268,913	268,355	-	558
Outcome 2 totals by appropriation type
Administered expenses
Ordinary annual services (Bill 1/3)	657,638	653,093	-	4,545
Special appropriations	9,913,177	9,682,341	-	230,836
Departmental expenses
Departmental appropriation1	46,178	46,178	-	-
Expenses not requiring appropriation in the budget year2	2,749	2,749	-	-
Total for Outcome 2	10,619,742	10,384,361	-	235,381

1 - Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No 1)' and 'Revenue from independent sources (s31)'.
2 - Expenses not requiring appropriation in the Budget year" is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

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	Budget 2011-12	Revised 2011-12
Average staffing level (number)	249	249

Table 2.2.2: Variations table - Outcome 2

	2011-12 $'000	2012-13 $'000	2013-14 $'000	2014-15 $'000
Program 2.1: Community Pharmacy & Pharmaceutical Awareness
Changes to administered appropriations
Appropriation Bill No.3
Price parameter adjustments1	-	2	1	-
	-	2	1	-
Program 2.3: Targeted Assistance - Pharmaceuticals
Changes to administered appropriations
Appropriation Bill No.3
Breast Cancer Patients - Herceptin - variation to reflect expected costs	(4,545)	(5,137)	(5,315)	(5,494)
Price parameter adjustments1	-	106	107	3
	(4,545)	(5,031)	(5,208)	(5,491)

1 - See explanation in glossary.

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Table 2.2.3: Program expenses table - Outcome 2

	2011-12 Revised budget $'000	2012-13 Forward year 1 $'000	2013-14 Forward year 2 $'000	2014-15 Forward year 3 $'000
Program expenses 2.1: Community Pharmacy and Pharmaceutical Awareness
Annual administered expenses
Ordinary annual services	311,173	314,973	347,071	373,807
Program support	11,321	10,988	10,748	10,182
Total program expenses	322,494	325,961	357,819	383,989
Program expenses 2.2: Pharmaceuticals and Pharmaceutical Services
Annual administered expenses
Ordinary annual services	186,235	189,958	193,755	197,628
Special appropriations
National Health Act 1953 - Pharmaceutical Benefits	9,416,580	9,764,439	10,438,642	11,146,662
Program support	34,117	33,114	32,388	30,687
Total program expenses	9,636,932	9,987,511	10,664,785	11,374,977
Program expenses 2.3: Targeted Assistance - Pharmaceuticals
Annual administered expenses
Ordinary annual services	154,883	154,623	160,276	166,070
Program support	1,697	1,647	1,611	1,527
Total program expenses	156,580	156,270	161,887	167,597
Program expenses 2.4: Targeted Assistance - Aids and Appliances
Annual administered expenses
Ordinary annual services	802	528	522	522
Special appropriations National Health Act 1953 - Aids and Appliances	265,761	286,065	308,201	331,698
Program support	1,792	1,739	1,701	1,612
Total program expenses	268,355	288,332	310,424	333,832

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Program key performance indicators

The table below outlines changes to performance information within Outcome 2 since the 2011-12 Health and Ageing Portfolio Budget Statements (PBS). Revisions to performance information since the PBS have been highlighted below. Further performance information for Outcome 2 can be found at Page 111 of the PBS.

Program 2.1: Deliverables

The department will produce the following ‘deliverables’ to achieve the objectives of Program 2.1.

Table 2.3: Qualitative Deliverables for Program 2.1

Qualitative Deliverables	2011-12 Reference Point or Target
Produce relevant and timely evidence-based policy research	Relevant evidence-based policy research produced in a timely manner
Stakeholders participate in program and/or policy development	Stakeholders participate in program and/or policy development through avenues such as regular consultative committees, conferences, stakeholder engagement forums, surveys, submissions on departmental discussion papers and meetings
Fifth Community Pharmacy Agreement
Implement new accreditation requirements for community pharmacies that support quality services, quality infrastructure and increased inter-professional communication	New accreditation requirements in place from July 2011
Provide funding to community pharmacies in rural and remote areas to support the delivery of professional services	Community pharmacies in rural and remote areas are provided with funding options to support the delivery of professional services
Implement revisions to professional programs and services under the Fifth Community Pharmacy Agreement based on reviews of these programs under the Fourth Agreement	Revisions to improve professional programs and services under the Fifth Community Pharmacy Agreement are implemented within agreed timeframes
Completion of the Medscheck and Diabetes MedsCheck pilot	Pilot undertaken and evaluated to inform national rollout from 1 July 2012
Streamline the Pharmacy Location Rules	Amendments to the rules implemented by December 2011
Provide incentive funding to community pharmacies (and in some circumstances Hospital pharmacies) to support the delivery of quality use of medicines and medication management support services to Aboriginal and Torres Strait Islander Health Services (AHS) in remote and very remote areas1	Quality use of medicines and medication management support are provided to remote AHSs through the support of participating pharmacists

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Program 2.2: Key Performance Indicators

The following ‘key performance indicators’ measure the effectiveness of Program 2.2 in meeting its objectives thereby contributing to the outcome.

Table 2.10: Quantitative Key Performance Indicators for Program 2.2

Quantitative Indicators	2010-11 Revised Budget	2011-12 Budget Target	2012-13 Forward Year 1	2013-14 Forward Year 2	2014-15 Forward Year 3
New medicine listings
All medicines recommended for listing by the PBAC are both cost-effective and clinically effective	100%	100%	100%	100%	100%
Increase sustainability of the Pharmaceutical Benefits Scheme
Estimated savings to Government from the price disclosure program per annum2	$38.0m	$62.0m	$121.0m	$296.0m	$578.0m
Percentage of prescriptions listed on the Schedule of Pharmaceutical Benefits subsidised under the PBS	80%	80%	80%	80%	80%
Number of prescriptions subsidised through the PBS3	188.0m	193.0m	199.0m	205.0m	211.0m
Revenue received from the cost recovery of the PBS listing process	$14.0m	$14.1m	$14.1m	$14.1m	$14.1m

1 - This qualitative deliverable was reported under Program 8.1 in error in the 2011-12 Portfolio Budget Statements.
2 - The targets in the Portfolio Budget Statements 2011-12 were incorrect. The correct figures are reflected here and are as reported in PricewaterhouseCoopers, 2010. The Impacts of Pharmaceutical Benefits Scheme Reform, Report for the Department of Health and Ageing, page 91, Appendix A Table 3; Savings to Government by year.
3 - These prescription volume forecasts take into account lower then expected actual medicines usage in 2010-11.

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