Proposed update to Pharmac’s Operating Policies and Procedures Manual
What we’re proposing
We are updating our Operating Policies and Procedures Manual (the Manual) to bring it into line with the breadth of Pharmac’s current practices and the current health system. It was last updated in 2017.
2017 Operating Policies and Procedures Manual
What will the result be?
The revised edition will ensure that Pharmac’s statutory functions and objectives are clearly authorised, well-documented, accessible, clear, and consistent. This helps ensure we are following public law obligations.
Who we think will be interested
- Pharmaceutical suppliers.
- Other parts of the New Zealand public health system.
About the Operating Policies and Procedures Manual
The Manual covers the ways that Pharmac operates. The proposed revised edition has five sections.
Section one covers the strategic setting:
This includes
- Pharmac’s objectives and functions
- te Tiriti o Waitangi commitment
- consultation and engagement
- the strategies Pharmac adopts to achieve its statutory objectives
- Pharmac’s decision-making framework the Factors for Consideration
- the role of expert advice, equity
- the handling of information
- responsible use initiatives
Section two covers the Schedule
- the Pharmaceutical Schedule (that records most of Pharmac’s decisions and details products available for reimbursement)
- how Pharmac might implement decisions outside of the Schedule.
Section three focuses on funding
This includes:
- funding applications
- funding criteria
- funding exceptions
- implementation of funding decisions.
Section four covers commercial processes
This includes
- contracting
- competitive procurement processes
- bundling
Section five focuses on paying pharmacies
This includes how Pharmac reimburses pharmacies and other organisations for the cost of pharmaceuticals used in the health sector. This includes both subsidies and restrictions on reimbursement.
About the proposed revised edition
We have worked to ensure that this edition is both high-level and principles-based, while also being complete. We have aimed to eliminate unnecessary detail, while ensuring that the full breadth of current practices is covered.
Why we are proposing this
The Manual was out of date. It did not accurately reflect all of Pharmac’s current work nor the changes to the New Zealand health system (for example, legislative change). This update was necessary to ensure these changes are reflected.
Please tell us:
- Do you foresee any unintended consequences from the changes?
- Do you recommend any changes?
- Do you feel that the proposed revised edition is clear and functional?
- Do you have any further comments or feedback?
To give feedback
Send us an email: consult@pharmac.govt.nz or complete our online form by 5 pm on Friday 15 August 2025.
All feedback received before the closing date will be considered by Pharmac’s Board (or its delegate) prior to making a decision on this proposal.
Your feedback may be shared
When you give feedback on a consultation, your feedback becomes official information that Pharmac holds. Pharmac has legal responsibilities for how we manage this official information, under laws such as the Official Information Act and Privacy Act.
Pharmac may receive a request from people for official information, which could include your feedback. Legally, Pharmac must consider whether your feedback should be released.
We will consider your views when assessing whether the feedback has to be released. Tell us if there is anything about your feedback that you would prefer wasn’t released. If your feedback is proposed for release, then Pharmac will contact you, unless there is a legal reason that we can't.
Note that Pharmac collects and holds your information in line with our Privacy Statement.