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Economic analysis of exclusive distribution of PBS medicines
National Pharmaceutical Services Association
June 2011
Economic analysis of exclusive distribution of PBS medicines
Contents
Key findings .............................................................................................................................. 1 Introduction .............................................................................................................................. 3
1.1 Structure of this report ..................................................................................................... 4 The importance of access .................................................................................................. 5 Public policy context ......................................................................................................... 5 Rationale for the Community Service Obligation................................................................ 6 Operation of the CSO Funding Pool ................................................................................... 8 The traditional distribution model for PBS medicines ........................................................ 9 Pressures on the PBS supply chain................................................................................... 10 Exclusive distribution ...................................................................................................... 12 Potential impacts ............................................................................................................ 14 Possible broader supply-chain implications – evidence from overseas ............................. 23 Summary of impacts on supply chain participants ........................................................... 24 The policy options ........................................................................................................... 26
2
Access to PBS medicines and the existing distribution...