Pharmac is almost universally hated by GPs. The incomprehensible funding decisions. The endless “special authorities” designed only to stop you prescribing a drug. The sudden unexpected loss of control of a patient’s disease because of a change to a cheaper brand. The dwindling choice of drugs which becomes horribly apparent when you try to prescribe drugs for overseas visitors (I have managed to find only four exact equivalents of the last 20 drugs from lists overseas patients have brought me). All of these things combine to make the average GP seriously homicidal about Pharmac decision makers.
None of this is very surprising. Pharmac simply does not have the same philosophy as mainstream medicine. Doctors are thinking “what can I prescribe to my patient that will give the best result?” Pharmac is thinking “What is the cheapest drug I can use for this condition?” Admittedly, doctors are notorious for being lead around by drug reps who are adept at persuading us that their drug is the best, with the lowest side effects and the strongest action. Pharmac is not so easily persuaded, needing hard evidence to convince them.
That last sentence is not quite true. Pharmac seem extremely easy to persuade that a cheaper drug is the exact equivalent of a more expensive one or, worse still, that a cheaper drug does “as good a job” as the more expensive one. Part of the reason for this is the division between itself and Medsafe – the body that approves drugs. Medsafe is only concerned with the safety of drugs, not their bio-equivalence (whether the drug is absorbed in the same way). Consequently, Medsafe will declare a drug “the same” without ever testing whether it is absorbed at all, let alone absorbed at the same rate as another brand. Pharmac will then buy the brand because it is cheaper, without testing its efficacy. Small wonder that sometimes the new drug is simply not bio-equivalent. Small wonder that Mrs. B’s blood pressure suddenly goes through the roof after ten years of stable readings.
Perhaps the most overtly ridiculous example of Pharmac’s idea of equivalence is their steadfast refusal to fund the EpiPen. The Herald today carries two articles – one on a little boy called Finn who carries an EpiPen with him everywhere and one on the renewed call for funding for EpiPens following the death of an 8-year-old boy from an acute allergic reaction to cashew nuts. It is highly likely that an EpiPen could have saved his life. Pharmac believes that providing a patient with a syringe, needle and ampoule of adrenaline is the equivalent of an EpiPen – an auto-injection device that contains the exact amount of adrenaline needed. Adrenaline injected at the earliest opportunity in anaphylaxis (collapse from allergy) is a life-saving action. Pharmac thinks that:
- carrying around a syringe, needle and glass vial, breaking the vial and drawing up the required dose; then plunging the needle into your leg and pressing the plunger; is the equivalent of
- carrying around a neat pen, taking the cap off, putting it against your leg and pushing the button.
You might think this madness is purely temporary while Pharmac is struggling a little for funds, but you would be wrong. Pharmac have stuck to this position since 2005. Here is the New Zealand Medical Journal article that pleads for full funding of the EpiPen. Here is the reply from Pharmac in the NZMJ. For those of you who like summaries, the gist of Pharmac’s argument goes ” People don’t know how to use the EpiPen properly and don’t carry it with them – so we will only fund an “equivalent” that is more difficult to use and harder to carry around”.
Yeah. I can’t follow their logic either.
Apparently, it does not occur to Pharmac that the simple solution to the poor use statistics of the EpiPen (which is still 10 times better than the syringe/vial combo) is to ensure that people are trained properly in its use.
- Provide it only to GP practices.
- Fund a nurse consultation to ensure that holders of the EpiPen and parents can use it properly (this does not add a lot to the overall cost of the EpiPen).
- Have a recall system in place so that people come in and replace their Epipen at no charge – and get another “refresher” from the practice nurse.
- Add training in the use of the EpiPen to all the first aid courses.
I am willing to bet within a couple of years at least 50% of all episodes of anaphylaxis will get treated with an EpiPen in the community. And we won’t have 8-year-old boys dying from an eminently treatable condition because Pharmac is too busy funding chocolate flavour condoms.
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Dec 15 09 9:40 am
No-one’s perfect, and it’s easy to throw stones. But what’s your alternative? Have doctors prescribe what they want and make patients pick up the tab? No Pharmac would just mean more taxpayer money distributed to big pharma overseas.
Dec 15 09 2:45 pm
rainman: No Pharmac would just mean more taxpayer money distributed to big pharma overseas.
That’s a silly statement considering all manufacturing takes place overseas
Pharmac could lift the restriction on subsidizing alternative drugs. Currently, Pharmac has to specifically allow you to prescribe a different brand, before it will provide the subsidy. When the subsidy is $50 but the other brand costs $55, it makes no sense for a patient to have to fork out $55 instead of just the extra $5.
It also makes no sense that Pharmac funds one class of drug, but does not cross-subsize another. For instance, it is a well known phenomenon in blood pressure control that one drug may have unacceptable side effects yet a very similar drug has none. But I can’t try out the similar drug on my patient, I have to change to an entirely different class.
The other obvious thing about Pharmac is that it should insist that manufacturers provide proper bioavailability studies before switching brands.
Dec 16 09 1:26 pm
Without understanding enough to be pro or anti Pharmac, I recently read that regarding NZ’s proposed FTA with the US,
“Huge US pharmaceutical companies resent the bargaining power of Pharmac which holds down the costs of medicines to New Zealand, saving us probably hundreds of millions of dollars a year. The US report makes clear it wants to reduce Pharmac’s power, and insisted on similar provisions in its FTA with Australia. It would also like us to lengthen the patent protections on those companies’ drugs, preventing competition for longer”.
Found at,
http://nznotforsale.wordpress.com/who-wins-if-we-get-a-free-trade-with-the-us/
What do you think?
Dec 16 09 6:10 pm
Johnnieboy:
Trade is trade. It might be worthwhile trading away our Pharmac advantage if we obtain something more worthwhile from the US – like the loss of agricultural trade barriers. I trust that someone as intelligent as Tim Groser would ensure that the deal was sweet for New Zealand.
Such a trade might even hold pluses for New Zealander’s as the net result would likely be a substantially better choice of medication on offer. Note that Pharmac would still be offering the same subsidies, but would not restrict choice and force wealthier people to pay twice (in Taxes and in pharmaceutical bill) if they want an alternative.
Dec 17 09 1:39 pm
Mac: “That’s a silly statement considering all manufacturing takes place overseas”
Hardly, if Pharmac’s buying power saves us money. I do understand that pretty much all pharma spend goes overseas – I was simply asserting that Pharmac is an agent of efficiency and reduces the total spend.
“Trade is trade. It might be worthwhile trading away our Pharmac advantage if we obtain something more worthwhile from the US”
Depends, as always, on who is enriched and who is impoverished.